Updated Duplex with Finished Lower
For Sale
$395,000
Pending
1278 Terrace Bluff Drive, Traverse City, MI 49686
Single Family, Duplex, 1 Story, Traverse City, MI
Property Size2,435 SF
Days on Market198
Property Features for 1278 Terrace Bluff Drive
General Information
Property type
Residential
Property subtype
Duplex
Zoning
Residential,Deed Restrict
Zoning description
Residential, Deed Restrictions
Bedrooms
3
Bathrooms
3
Full bathrooms
3
Rooms
Bedroom 2, Dining Room, Bathroom 3, Family Room, Bedroom 3, Bathroom 1, Bathroom 2, Bedroom 1
Patio and Porch features
Deck
Interior features
Cathedral Ceilings, Foyer Entrance, Pantry, Drywall
Exterior features
Deck, Landscaped
Appliances
Refrigerator, Oven/Range, Dishwasher, Microwave, Blinds, Smoke Alarms(s)
Lot features
Site Condo, Level
Elementary school
Traverse Heights Elementary School
Middle school
Traverse City East Middle School
High school
Central High School
Elementary school district
Traverse City Area Public Schools
Middle school district
Traverse City Area Public Schools
High school district
Traverse City Area Public Schools
Directions
Division to south on Garfield to right on Oak Terrace to right at entrance of Terrace Estates
Subdivision
Terrace Estates Condominium
Standard status
Pending
Size
2,435 SF
Taxes and HOA fees
Tax Description
UNIT NO.24 TERRACE ESTATES GRAND TRAVERSE COUNTY CONDOMINIUM SUBDIVISION PLAN NO. 125 SECTION 14 T27N R11W.
HOA Fee
$225 Monthly
Legal Description
UNIT NO.24 TERRACE ESTATES GRAND TRAVERSE COUNTY CONDOMINIUM SUBDIVISION PLAN NO. 125 SECTION 14 T27N R11W.
Amenities
central air
deck/porch
Building Details
Year built
2003
Floors in Building
1
Building materials
Frame
Roof type
Asphalt
Architectural style
Other
Listing Agency:
Social Realty, LLC
Listed By:
William Kaupas
(231) 392-9445
Added: Feb 25
Changed: Sep 5
Last Checked: Sep 11 at 2:06AM
MLS# 1942500
Copyright © 2026 Northern Great Lakes Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This one-story duplex in Traverse City offers 2,435 finished square feet, including 1,284 square feet above grade and a 1,151-square-foot finished lower level. The interior includes an open floor plan, cathedral ceilings, three bedrooms, a foyer, pantry, dining room, family room, and main-level laundry. The lower level provides additional finished space for flexible use. Recent work includes interior repainting and updates to three bathrooms, while solid-surface kitchen counters, central air, and included appliances add everyday functionality.
Exterior features include a deck, landscaped grounds, asphalt roofing, and an attached two-car garage. The property was built in 2003 and is located at 1278 Terrace Bluff Drive in Traverse City, near shopping, dining, and everyday services. Zoning is listed as Residential, Deed Restrict.
Exterior features include a deck, landscaped grounds, asphalt roofing, and an attached two-car garage. The property was built in 2003 and is located at 1278 Terrace Bluff Drive in Traverse City, near shopping, dining, and everyday services. Zoning is listed as Residential, Deed Restrict.
Key Highlights
- 2,435 finished square feet with 1,151 finished square feet in the lower level
- Three‑bedroom layout with an open floor plan and cathedral ceilings
- Attached 2‑car garage
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
$26,370
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
6.68%
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%
$527,400
$527.4K
Cap Rate 7%
$376,714
$376.7K
Cap Rate 9%
$293,000
$293.0K
Market Conditions
NOI Build-Up for 2,435 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
$39.4K $16.20/SF
− Vacancy
−$1.8K −$0.73/SF
EGI
$37.7K $15.47/SF
− OpEx
−$11.3K −$4.64/SF
NOI
$26.4K $10.83/SF
Area
Grand Traverse County, MI
Vacancy
4.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
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%
$527,400
Cap Rate 7%
$376,714
Cap Rate 9%
$293,000
Alternative Uses
Best Use
Multifamily LT 5
$376.7K
$329.6K – $439.5K
NOI $26,370 @ 7.0% cap · market cap 6.68%
Second Best
Apartment 5plus
$330.6K
$289.3K – $385.7K
NOI $23,142 @ 7.0% cap · market cap 5.86%
Theoretical Best
Office A
$529.0K
$462.9K – $617.1K
NOI $37,028 @ 7.0% cap · market cap 9.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
780
Businesses Nearby
Explore this area
Business Placement
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - One-story residential property with an open layout, attached garage, deck, and refreshed interior finishes.
Where is this duplex located?
The property is located at 1278 Terrace Bluff Drive Traverse City, MI.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 2,435 finished square feet with 1,151 finished square feet in the lower level; Three‑bedroom layout with an open floor plan and cathedral ceilings; Attached 2‑car garage
