Multifamily Property with Updated
For Sale
$699,900
21 SE Prospect Ave City Of, Grand Rapids, MI 49503
A main unit is complemented by studio units and private access to a rear deck.
Property Size3,594 SF
Price / SF$194.74
Days on Market30
Property Features for 21 SE Prospect Ave City Of
General Information
Standard status
Active
Size
3,594 SF
Property subtype
Multi-Family
Additional Details
Gross Income
$95,040
Building Details
Year Built
1905
Tenancy
Multi
Listing Agency:
Berkshire Hathaway Homeservices Kee Realty Browns
(248) 266-0584
Listed By:
Oak & Stone Real Estate
(248) 266-0584
Source:
Oakandstonerealestate
Added: Jul 31
Changed: Aug 28
Last Checked: Aug 29 at 8:57AM
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 Berkshire Hathaway Homeservices Kee Realty Browns
Investment Insights
Based on property information with market context.
Built in 1905, this multifamily property combines a main unit with additional studio units. The primary residence-style unit features an updated kitchen, generously sized bedrooms, and its own access to the rear deck. The studio configuration provides a distinct secondary component within the property.
Located in Heritage Hill at 21 Prospect Ave SE, the property offers a residential income configuration with flexibility for an owner occupant or investor. The existing layout brings together a larger main unit and separate studio accommodations in one established Grand Rapids property.
Located in Heritage Hill at 21 Prospect Ave SE, the property offers a residential income configuration with flexibility for an owner occupant or investor. The existing layout brings together a larger main unit and separate studio accommodations in one established Grand Rapids property.
Key Highlights
- Main unit with updated kitchen and spacious bedrooms
- Separate studio units within the multifamily configuration
- Private access to the rear deck from the main unit
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
$34,115
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
4.87%
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%
$682,300
$682.3K
Cap Rate 7%
$487,357
$487.4K
Cap Rate 9%
$379,056
$379.1K
Market Conditions
NOI Build-Up for 3,594 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
$66.0K $18.36/SF
− Vacancy
−$4.0K −$1.10/SF
EGI
$62.0K $17.26/SF
− OpEx
−$27.9K −$7.77/SF
NOI
$34.1K $9.49/SF
Area
Grand Rapids, MI
Vacancy
6.00%
Lease Rate
$18.36 /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%
$682,300
Cap Rate 7%
$487,357
Cap Rate 9%
$379,056
Alternative Uses
Best Use
Apartment 5plus
$487.4K
$426.4K – $568.6K
NOI $34,115 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$834.1K
$729.8K – $973.1K
NOI $58,385 @ 7.0% cap · market cap 8.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
6,903
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
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - A main unit is complemented by studio units and private access to a rear deck.
Where is this multifamily property located?
The property is located at 21 SE Prospect Ave City Of Grand Rapids, MI.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Main unit with updated kitchen and spacious bedrooms; Separate studio units within the multifamily configuration; Private access to the rear deck from the main unit
