Cannabis Grow
For Sale
$329,000
1305 KITSON ST, Sturgis, MI 49091
Metal commercial building with office and warehousing areas.
Property Size1,440 SF
Price / SF$228.47
Days on Market347
Property Features for 1305 KITSON ST
General Information
Standard status
Active
Size
1,440 SF
Property subtype
Industrial
Amenities
3
Metal
292362
Building Details
Year Built
2022
Listing Agency:
(269) 207-0971
Listed By:
Callander Commercial
(269) 207-0971
Source:
Xome
Added: Sep 20, 2025
Changed: Aug 31
Last Checked: Aug 31 at 2:26PM
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 Callander Commercial
Investment Insights
Based on property information with market context.
Built in 2022, this 1,440-square-foot metal building was developed as a cannabis grow facility and includes office and warehousing areas. The property includes two lots, providing additional land associated with the building.
The site is positioned within Sturgis Light Industrial Park at 1305 Kitson St in Sturgis, Michigan, on a dead-end street. Its existing configuration supports cannabis-related operations, while the building’s office and warehouse components provide a foundation for other small-business applications.
The site is positioned within Sturgis Light Industrial Park at 1305 Kitson St in Sturgis, Michigan, on a dead-end street. Its existing configuration supports cannabis-related operations, while the building’s office and warehouse components provide a foundation for other small-business applications.
Key Highlights
- 1,440‑square‑foot building completed in 2022
- Originally developed as a cannabis grow facility
- Two lots included with the building
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
$21,538
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
6.55%
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%
$430,760
$430.8K
Cap Rate 7%
$307,686
$307.7K
Cap Rate 9%
$239,311
$239.3K
Market Conditions
NOI Build-Up for 1,440 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
$31.6K $21.96/SF
− Vacancy
−$854 −$0.59/SF
EGI
$30.8K $21.37/SF
− OpEx
−$9.2K −$6.41/SF
NOI
$21.5K $14.96/SF
Area
St. Joseph County, MI
Vacancy
2.70%
Lease Rate
$21.96 /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%
$430,760
Cap Rate 7%
$307,686
Cap Rate 9%
$239,311
Alternative Uses
Best Use
Industrial
$307.7K
$269.2K – $359.0K
NOI $21,538 @ 7.0% cap · market cap 6.55%
Second Best
Flex RnD
$265.7K
$232.5K – $310.0K
NOI $18,602 @ 7.0% cap · market cap 5.65%
Theoretical Best
Multifamily LT 5
$17.94M
$15.70M – $20.93M
NOI $1,255,995 @ 7.0% cap · market cap 381.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 49091, MI
19,901
Population
8,732
Households
2.3
Avg Household Size
38
Median Age
20%
College-Educated
84%
High-School Grad
87.3 sq mi
ZIP Area
228
Density / Sq Mi
$65,000
Median Household Income
$39,399
Median Earnings
$817
Median Rent
$173,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Cannabis property - Metal commercial building with office and warehousing areas.
Where is this cannabis property located?
The property is located at 1305 KITSON ST Sturgis, MI.
What is the asking price?
The asking price for this property is $329,000.
What are key features of this property?
This property features: 1,440‑square‑foot building completed in 2022; Originally developed as a cannabis grow facility; Two lots included with the building
