Daytona Beach Redevelopment
For Sale
$599,000
Pending
129 MICHIGAN AVENUE, Daytona Beach, FL 32114
Two buildings in downtown redevelopment area, ideal for various businesses.
Property Size5,663 SF
Lot Size0.38 Acres
Days on Market576
Property Features for 129 MICHIGAN AVENUE
General Information
Standard status
Pending
Size
5,663 SF
Lot size
0.38 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$7,222
Building Details
Year Built
1955
Listing Agency:
SIMPLY REAL ESTATE
(386) 235-0572
Listed By:
Kelly Ferguson · License #3383676
(386) 235-0572
Source:
Exitrealty
Added: Jan 13, 2025
Changed: Aug 8
Last Checked: Aug 12 at 4:52AM
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 SIMPLY REAL ESTATE
Investment Insights
Based on property information with market context.
Located in downtown Daytona Beach, this property is situated in a redevelopment area, north of Brown & Brown's headquarters and near Esplanade Park, Main St Bridge, Halifax River, and US 1. A new family living apartment development is currently under construction directly behind the property. The property includes two separate buildings on one parcel. The two-story building offers 5,663 square feet and features a kitchen, living areas, dining areas, and offices. The second building, formerly a daycare, provides 960 square feet. The property previously housed a non-profit clinic, daycare, and human services office. Potential uses include a brewery, restaurant, or general business. Other possibilities include a daycare, pet boarding, or self-storage facility, catering to the employees of Brown & Brown and residents of the upcoming apartment building.
Key Highlights
- Located in the heart of downtown Daytona Beach redevelopment area.
- Two separate buildings on one parcel: 5,663 sq ft two‑story building and a 960 sq ft building.
- Close proximity to Brown & Brown headquarters, Esplanade Park, Main St Bridge, Halifax River, and US 1.
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
$33,715
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
5.63%
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%
$674,300
$674.3K
Cap Rate 7%
$481,643
$481.6K
Cap Rate 9%
$374,611
$374.6K
Market Conditions
NOI Build-Up for 5,663 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
$51.0K $9.00/SF
− Vacancy
−$2.8K −$0.50/SF
EGI
$48.2K $8.50/SF
− OpEx
−$14.4K −$2.55/SF
NOI
$33.7K $5.95/SF
Area
Volusia County, FL
Vacancy
5.50%
Lease Rate
$9.00 /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%
$674,300
Cap Rate 7%
$481,643
Cap Rate 9%
$374,611
Alternative Uses
Best Use
Specialty Retail
$1.23M
$1.07M – $1.43M
NOI $85,995 @ 7.0% cap · market cap 14.36%
Second Best
Self Storage
$798.5K
$698.7K – $931.6K
NOI $55,894 @ 7.0% cap · market cap 9.33%
Theoretical Best
Office A
$1.67M
$1.46M – $1.95M
NOI $116,884 @ 7.0% cap · market cap 19.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,385
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 32114, FL
34,943
Population
17,118
Households
2
Avg Household Size
33
Median Age
19%
College-Educated
89%
High-School Grad
16.0 sq mi
ZIP Area
2,184
Density / Sq Mi
$39,906
Median Household Income
$31,220
Median Earnings
$1,171
Median Rent
$174,900
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Rising Star Daycare — 711 Revere St, Daytona Beach, FL 32114
- Rise Up Learning Center — 707 North St, Daytona Beach, FL 32114
- Lilies of the Field — 201 San Juan Ave, Daytona Beach, FL 32114
- Friendship Academy — 404 N Charles St, Daytona Beach, FL 32114
- Child Care Resource Network — 230 N Beach St, Daytona Beach, FL 32114
Frequently Asked Questions
What type of property is this?
Day care center - Two buildings in downtown redevelopment area, ideal for various businesses.
Where is this day care center located?
The property is located at 129 MICHIGAN AVENUE Daytona Beach, FL.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Located in the heart of downtown Daytona Beach redevelopment area.; Two separate buildings on one parcel: **5,663 sq ft two‑story building and a 960 sq ft building.**; Close proximity to Brown & Brown headquarters, Esplanade Park, Main St Bridge, Halifax River, and US 1.
