Historic Grand Rapids Mixed-Use
For Sale
$5,250,000
Pending
25 Sheldon Avenue SE, Grand Rapids, MI 49503
Landmark property in downtown Grand Rapids with historic architecture.
Property Size48,211 SF
Days on Market131
Property Features for 25 Sheldon Avenue SE
General Information
Standard status
Pending
Size
48,211 SF
Total Parking Spaces
20
Zoning
TN-CC
Building Details
Year Built
1921
Buildings
1
Stories
5
Listing Agency:
Keller Williams Grand Rapids
(734) 369-8239
Listed By:
J. Keller Properties, LLC · License #6501295615
(734) 369-8239
Source:
Jkellerproperties.idxbroker
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 31 at 12:44PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Keller Williams Grand Rapids
Investment Insights
Based on property information with market context.
Located in downtown Grand Rapids, 25 Sheldon SE is a property suitable for developers, hotel operators, and hospitality groups. Constructed in 1921 and renovated in 2016, the 48,211 square foot building includes four stories and a walkout lower level, combining historic architecture with modern upgrades. The building's layout features a historic ballroom, offices, conference rooms, and a full basketball court, offering adaptability for hospitality, entertainment, mixed-use redevelopment, or large-scale institutional use. The property is also suited for nonprofit services, educational programming, wellness organizations, creative studios, and recreation-based users. Off-street parking is included. The property is located off the Division and Fulton corridors and near Corewell Health, Trinity Health, Van Andel Arena, the Amway Grand Plaza, and the Acrisure Amphitheatre, placing it in Grand Rapids' cultural, medical, and entertainment district. The bike score is 66, making it bikeable. The walk score is 81, indicating it is very walkable. The transit score is 42, indicating some transit options are available.
Key Highlights
- Prime downtown Grand Rapids location with high walkability (Walk Score: 81)
- Large 48,211 SF building with historic architecture and modern upgrades (renovated in 2016)
- Versatile layout suitable for hospitality, entertainment, mixed‑use redevelopment, or large‑scale institutional use
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$266,009
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.07%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,320,180
$5.3M
Cap Rate 7%
$3,800,129
$3.8M
Cap Rate 9%
$2,955,656
$3.0M
Market Conditions
NOI Build-Up for 48,211 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$636.4K $13.20/SF
− Vacancy
−$76.4K −$1.58/SF
EGI
$560.0K $11.62/SF
− OpEx
−$294.0K −$6.10/SF
NOI
$266.0K $5.52/SF
Area
Grand Rapids, MI
Vacancy
12.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,320,180
Cap Rate 7%
$3,800,129
Cap Rate 9%
$2,955,656
Alternative Uses
Best Use
Mixed Use
$7.60M
$6.65M – $8.87M
NOI $532,249 @ 7.0% cap · market cap 10.14%
Second Best
Hotel Hospitality
$3.80M
$3.33M – $4.43M
NOI $266,009 @ 7.0% cap · market cap 5.07%
Theoretical Best
Specialty Retail
$11.19M
$9.79M – $13.05M
NOI $783,188 @ 7.0% cap · market cap 14.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,826
Businesses Nearby
Explore this area
Business Placement
Demographics for 49503, MI
39,344
Population
19,017
Households
2.1
Avg Household Size
30
Median Age
44%
College-Educated
88%
High-School Grad
7.3 sq mi
ZIP Area
5,390
Density / Sq Mi
$61,734
Median Household Income
$36,694
Median Earnings
$1,207
Median Rent
$224,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Landmark property in downtown Grand Rapids with historic architecture.
Where is this hotel located?
The property is located at 25 Sheldon Avenue SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $5,250,000.
What are key features of this property?
This property features: Prime downtown Grand Rapids location with high walkability (Walk Score: 81); Large 48,211 SF building with historic architecture and modern upgrades (renovated in 2016); Versatile layout suitable for hospitality, entertainment, mixed‑use redevelopment, or large‑scale institutional use
