Mixed-Use Property with
For Sale
$495,000
312 Pine Street, Elk Rapids, MI 49629
R-2-zoned property with grandfathered commercial use and potential for residential or approved community-oriented conversion.
Property Size3,475 SF
Price / SF$142.45
Days on Market500
Property Features for 312 Pine Street
General Information
Standard status
Active
Size
3,475 SF
Property subtype
Commercial/Industrial
Zoning
R-2
Building Details
Year Built
1947
Listing Agency:
Coldwell Banker Schmidt Traverse City
(231) 633-0432
Listed By:
Daniel J Stiebel · License #6502352362
(231) 633-0432
Source:
Exitrealty
Added: Apr 18, 2025
Changed: Aug 30
Last Checked: Aug 30 at 3:04AM
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 Coldwell Banker Schmidt Traverse City
Investment Insights
Based on property information with market context.
This mixed-use property includes a 3,475 SF building and a separate 960 SF garage on a large double lot. Constructed in 1947, the property is currently occupied by a business that is relocating. The existing improvements offer a basis for continued commercial occupancy, subject to applicable Village approval and zoning requirements.
Located three blocks from downtown Elk Rapids at 312 Pine Street, the property carries R-2 zoning with commercial use grandfathered. A five-year deed restriction prohibits funeral homes and related uses. Potential uses identified for Village consideration include daycare, a senior facility, a church, or multifamily use. Duplex development or two single-family homes are permitted by right, while other commercial applications would require zoning approval.
Located three blocks from downtown Elk Rapids at 312 Pine Street, the property carries R-2 zoning with commercial use grandfathered. A five-year deed restriction prohibits funeral homes and related uses. Potential uses identified for Village consideration include daycare, a senior facility, a church, or multifamily use. Duplex development or two single-family homes are permitted by right, while other commercial applications would require zoning approval.
Key Highlights
- 3,475 SF building plus a 960 SF garage
- Large double lot three blocks from downtown Elk Rapids
- R‑2 zoning with grandfathered commercial use
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
$29,320
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
5.92%
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%
$586,400
$586.4K
Cap Rate 7%
$418,857
$418.9K
Cap Rate 9%
$325,778
$325.8K
Market Conditions
NOI Build-Up for 3,475 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
$52.1K $15.00/SF
− Vacancy
−$5.2K −$1.50/SF
EGI
$46.9K $13.50/SF
− OpEx
−$17.6K −$5.06/SF
NOI
$29.3K $8.44/SF
Area
Antrim County, MI
Vacancy
10.00%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
37.50%
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%
$586,400
Cap Rate 7%
$418,857
Cap Rate 9%
$325,778
Alternative Uses
Best Use
Mixed Use
$418.9K
$366.5K – $488.7K
NOI $29,320 @ 7.0% cap · market cap 5.92%
Second Best
Multifamily LT 5
$391.4K
$342.4K – $456.6K
NOI $27,395 @ 7.0% cap · market cap 5.53%
Theoretical Best
Office A
$618.4K
$541.1K – $721.5K
NOI $43,289 @ 7.0% cap · market cap 8.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
344
Businesses Nearby
Explore this area
Business Placement
Demographics for 49629, MI
1,997
Population
1,696
Households
1.2
Avg Household Size
60
Median Age
46%
College-Educated
99%
High-School Grad
3.8 sq mi
ZIP Area
526
Density / Sq Mi
$74,318
Median Household Income
$46,250
Median Earnings
$1,032
Median Rent
$347,100
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?
Mixed-use property - R-2-zoned property with grandfathered commercial use and potential for residential or approved community-oriented conversion.
Where is this mixed-use property located?
The property is located at 312 Pine Street Elk Rapids, MI.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: 3,475 SF building plus a 960 SF garage; Large double lot three blocks from downtown Elk Rapids; R‑2 zoning with grandfathered commercial use
