Mixed-Use Corner
For Sale
$109,900
5928 E Michigan Ave, Kalamazoo, MI 49048
B-3-zoned property combines retail space, residential occupancy, and a bathroom with shower.
Property Size1,076 SF
Price / SF$102.14
Days on Market489
Property Features for 5928 E Michigan Ave
General Information
Standard status
Active
Size
1,076 SF
Property subtype
Commercial
Zoning
B-3
Site & Location
Corner Location
Yes
Traffic Count
16,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Building Details
Year Built
1930
Listing Agency:
O'Brien Real Estate
(269) 381-6470
Listed By:
Pat O'Brien · License #6502102326
Source:
Metrodetroithomeguide
Added: Apr 29, 2025
Changed: Aug 29
Last Checked: Aug 25 at 7:12AM
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 O'Brien Real Estate
Investment Insights
Based on property information with market context.
This 1930 mixed-use building is configured for retail activity with the potential for a small 1 + bedroom apartment. The property includes a bathroom with shower and can accommodate residential occupancy alongside commercial space. Its prior operation was a water softener sales and service business.
Positioned on a commercial corner along M96, also identified as E Michigan and River St, the property sits within a new Live/Work zone in Comstock. The site has off-street parking, city sewer, and city water. B-3 zoning is in place, with source-described examples of possible uses including a vape store and open-air displays. Retail, restaurant, and store uses are also identified in the property information.
Positioned on a commercial corner along M96, also identified as E Michigan and River St, the property sits within a new Live/Work zone in Comstock. The site has off-street parking, city sewer, and city water. B-3 zoning is in place, with source-described examples of possible uses including a vape store and open-air displays. Retail, restaurant, and store uses are also identified in the property information.
Key Highlights
- 16,000 cars per day on M96 (E Michigan / River St)
- B‑3 zoning with retail and residential occupancy potential
- Room for a small 1 + bedroom apartment
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
$7,421
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
6.75%
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%
$148,420
$148.4K
Cap Rate 7%
$106,014
$106.0K
Cap Rate 9%
$82,456
$82.5K
Market Conditions
NOI Build-Up for 1,076 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
$12.9K $12.00/SF
− Vacancy
−$2.3K −$2.15/SF
EGI
$10.6K $9.85/SF
− OpEx
−$3.2K −$2.96/SF
NOI
$7.4K $6.90/SF
Area
Kalamazoo County, MI
Vacancy
17.90%
Lease Rate
$12.00 /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%
$148,420
Cap Rate 7%
$106,014
Cap Rate 9%
$82,456
Alternative Uses
Best Use
Mixed Use
$159.1K
$139.2K – $185.6K
NOI $11,137 @ 7.0% cap · market cap 10.13%
Second Best
Retail
$106.0K
$92.8K – $123.7K
NOI $7,421 @ 7.0% cap · market cap 6.75%
Theoretical Best
Warehouse
$281.6K
$246.4K – $328.5K
NOI $19,710 @ 7.0% cap · market cap 17.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
146
Businesses Nearby
24k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Speedway
Shops & Services
11,142 visits/mo
0.2 miles
Dollar General
Shops & Services
5,326 visits/mo
0.3 miles
7-Eleven
Shops & Services
4,453 visits/mo
0.2 miles
Citgo
Shops & Services
2,856 visits/mo
0.2 miles
Demographics for 49048, MI
25,067
Population
10,440
Households
2.4
Avg Household Size
36
Median Age
25%
College-Educated
90%
High-School Grad
35.1 sq mi
ZIP Area
714
Density / Sq Mi
$62,160
Median Household Income
$36,150
Median Earnings
$1,032
Median Rent
$158,300
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?
Mixed-use property - B-3-zoned property combines retail space, residential occupancy, and a bathroom with shower.
Where is this mixed-use property located?
The property is located at 5928 E Michigan Ave Kalamazoo, MI.
What is the asking price?
The asking price for this property is $109,900.
What are key features of this property?
This property features: 16,000 cars per day on M96 (E Michigan / River St); B‑3 zoning with retail and residential occupancy potential; Room for a small 1 + bedroom apartment
