19-Unit Apartment
For Sale
$3,135,000
4420 Springer Ave Royal, Royal Oak, MI 48073
Mid-rise multifamily property with MF zoning and existing occupancy.
Property Size16,822 SF
Price / SF$186.36
Days on Market16
Property Features for 4420 Springer Ave Royal
General Information
Standard status
Active
Size
16,822 SF
Property subtype
MultiFamily Apartments
Zoning
MF
Occupancy
68%
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Multifamily Units
19
Building Details
Building Size
16,822 SF
Year Built
1956
Buildings
1
Listing Agency:
The Jonna Group
Listed By:
Simon Jonna · License #6501357188
(248) 226-1610
Source:
Thebrokerlist
Added: Aug 21
Changed: Aug 31
Last Checked: Sep 4 at 2:07AM
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 The Jonna Group
Investment Insights
Based on property information with market context.
This mid-rise apartment property in Royal Oak, MI, contains 16,822 SF and 19 residential units. Constructed in 1956, the building is designated for multifamily use under MF zoning and currently reports 68% occupancy.
The property is located in the Royal Oak area, a community associated with dining, shopping, entertainment, and outdoor recreation. Downtown Royal Oak, the Royal Oak Music Theatre, Red Run Golf Course, and Royal Oak Farmers Market are identified in the surrounding area. Major highways and public transportation are also noted as accessible from the property.
The property is located in the Royal Oak area, a community associated with dining, shopping, entertainment, and outdoor recreation. Downtown Royal Oak, the Royal Oak Music Theatre, Red Run Golf Course, and Royal Oak Farmers Market are identified in the surrounding area. Major highways and public transportation are also noted as accessible from the property.
Key Highlights
- 16,822 SF apartment building
- 19 residential units
- 68% occupancy
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
$206,343
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
6.58%
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%
$4,126,860
$4.1M
Cap Rate 7%
$2,947,757
$2.9M
Cap Rate 9%
$2,292,700
$2.3M
Market Conditions
NOI Build-Up for 16,822 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
$391.6K $23.28/SF
− Vacancy
−$16.4K −$0.98/SF
EGI
$375.2K $22.30/SF
− OpEx
−$168.8K −$10.04/SF
NOI
$206.3K $12.27/SF
Area
Oakland County, MI
Vacancy
4.20%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
45.00%
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%
$4,126,860
Cap Rate 7%
$2,947,757
Cap Rate 9%
$2,292,700
Alternative Uses
Best Use
Apartment 5plus
$2.95M
$2.58M – $3.44M
NOI $206,343 @ 7.0% cap · market cap 6.58%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.63M
$3.17M – $4.23M
NOI $253,985 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
19
Residential units
68%
Occupancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,580
Businesses Nearby
Explore this area
Business Placement
Demographics for 48073, MI
33,658
Population
17,551
Households
1.9
Avg Household Size
39
Median Age
59%
College-Educated
97%
High-School Grad
7.4 sq mi
ZIP Area
4,548
Density / Sq Mi
$86,426
Median Household Income
$58,525
Median Earnings
$1,245
Median Rent
$302,800
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Mid-rise multifamily property with MF zoning and existing occupancy.
Where is this apartment building located?
The property is located at 4420 Springer Ave Royal Royal Oak, MI.
What is the asking price?
The asking price for this property is $3,135,000.
What are key features of this property?
This property features: 16,822 SF apartment building; 19 residential units; 68% occupancy
