Shopping Center With Grocery
For Sale
$7,000,000
325 Railroad St, Hudson, MI 49247
Retail plaza with established grocery, service, banking, and convenience-oriented tenants at a visible Hudson intersection.
Property Size56,000 SF
Price / SF$125
Days on Market476
Property Features for 325 Railroad St
General Information
Standard status
Active
Size
56,000 SF
Property subtype
Commercial
Amenities
loading dock
Building Details
Year Built
1970
Year Renovated
2006
Tenancy
Multi
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 414-4461
Listed By:
Brittany Ostrowski · License #6501397335
Source:
Metrodetroithomeguide
Added: May 11, 2025
Changed: Aug 28
Last Checked: Aug 28 at 10:19AM
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 ERA Reardon Realty, L.L.C.
Investment Insights
Based on property information with market context.
This shopping center at 325 Railroad St in Hudson, Michigan, includes an established grocery store anchor and a mix of complementary occupants. The tenant roster includes Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, a pharmacy, County National Bank, and Athletico Physical Therapy. A 2,700-square-foot unit is also available for lease. The property was built in 1970 and received a major remodel in 2006.
Property improvements include a roof installed in 2016, a loading dock, and more than 200 on-site parking spaces. The center benefits from road frontage at a highly visible intersection, supporting access for shoppers, employees, and service-oriented tenants. Its combination of grocery, retail, banking, food service, pharmacy, and physical therapy uses creates a varied commercial tenant profile within one center.
Property improvements include a roof installed in 2016, a loading dock, and more than 200 on-site parking spaces. The center benefits from road frontage at a highly visible intersection, supporting access for shoppers, employees, and service-oriented tenants. Its combination of grocery, retail, banking, food service, pharmacy, and physical therapy uses creates a varied commercial tenant profile within one center.
Key Highlights
- Established grocery store anchors the shopping center
- 2,700‑square‑foot unit currently available for lease
- Tenant roster includes Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, and a pharmacy
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
$622,853
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
8.90%
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%
$12,457,060
$12.5M
Cap Rate 7%
$8,897,900
$8.9M
Cap Rate 9%
$6,920,589
$6.9M
Market Conditions
NOI Build-Up for 56,000 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
$866.9K $15.48/SF
− Vacancy
−$36.4K −$0.65/SF
EGI
$830.5K $14.83/SF
− OpEx
−$207.6K −$3.71/SF
NOI
$622.9K $11.12/SF
Area
Lenawee County, MI
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
25.00%
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%
$12,457,060
Cap Rate 7%
$8,897,900
Cap Rate 9%
$6,920,589
Alternative Uses
Best Use
Specialty Retail
$8.90M
$7.79M – $10.38M
NOI $622,853 @ 7.0% cap · market cap 8.90%
Second Best
Retail
$8.30M
$7.27M – $9.69M
NOI $581,330 @ 7.0% cap · market cap 8.30%
Theoretical Best
Multifamily LT 5
$694.78M
$607.94M – $810.58M
NOI $48,634,919 @ 7.0% cap · market cap 694.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
240
Businesses Nearby
41k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 45%
Shops & Services 39%
Home Improvements & Furnishings 16%
McDonald's
Dining
18,308 visits/mo
0.3 miles
Dollar General
Shops & Services
6,887 visits/mo
0.2 miles
Hudson Ace Hardware
Home Improvements & Furnishings
6,605 visits/mo
0.1 miles
Family Dollar
Shops & Services
3,095 visits/mo
0.4 miles
Marathon Petroleum
Shops & Services
2,578 visits/mo
0.2 miles
Demographics for 49247, MI
5,720
Population
2,457
Households
2.3
Avg Household Size
42
Median Age
17%
College-Educated
89%
High-School Grad
84.0 sq mi
ZIP Area
68
Density / Sq Mi
$60,404
Median Household Income
$41,373
Median Earnings
$906
Median Rent
$138,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Retail plaza with established grocery, service, banking, and convenience-oriented tenants at a visible Hudson intersection.
Where is this shopping center located?
The property is located at 325 Railroad St Hudson, MI.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: Established grocery store anchors the shopping center; 2,700‑square‑foot unit currently available for lease; Tenant roster includes Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, and a pharmacy
