7-Unit Apartment Building with
For Sale
$399,900
1500 CENTER AVE, Bay City, MI 48708
Seven-unit apartment building with a detached garage and off-street parking, plus recent steam boiler and roof improvements.
Property Size4,731 SF
Price / SF$84.53
Days on Market51
Property Features for 1500 CENTER AVE
General Information
Standard status
Active
Size
4,731 SF
Property subtype
Industrial
Additional Details
Multifamily Units
7
Amenities
3
Composition
100135
Building Details
Year Built
1876
Tenancy
Multi
Listing Agency:
(989) 213-7217
Listed By:
Keller Williams Grand Rapids North
(989) 213-7217
Source:
Xome
Added: Jun 21
Changed: Aug 7
Last Checked: Aug 10 at 2:40AM
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 Keller Williams Grand Rapids North
Investment Insights
Based on property information with market context.
1500 Center Avenue offers a 7-unit apartment building with detached garage and off-street parking. The property has been owned by the same family for the past 30 years.
Recent improvements noted in the listing include a complete rebuild of the steam boiler system, as well as new porch roof and new garage roof. These updates are intended to help reduce near-term capital expense.
Set up as a multi-family investment, the building is positioned to serve tenants with on-site parking benefits that can be harder to find in older apartment properties. This offering is presented as a well-maintained asset with below-market rents and room to increase income over time.
Recent improvements noted in the listing include a complete rebuild of the steam boiler system, as well as new porch roof and new garage roof. These updates are intended to help reduce near-term capital expense.
Set up as a multi-family investment, the building is positioned to serve tenants with on-site parking benefits that can be harder to find in older apartment properties. This offering is presented as a well-maintained asset with below-market rents and room to increase income over time.
Key Highlights
- 7‑unit apartment building built in 1876 on the Center Avenue corridor in Bay City
- Recent improvements include a complete rebuild of the steam boiler system
- Roof updates include a new porch roof and a new garage roof
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
$25,994
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
6.50%
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%
$519,880
$519.9K
Cap Rate 7%
$371,343
$371.3K
Cap Rate 9%
$288,822
$288.8K
Market Conditions
NOI Build-Up for 4,731 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
$50.0K $10.56/SF
− Vacancy
−$2.7K −$0.57/SF
EGI
$47.3K $9.99/SF
− OpEx
−$21.3K −$4.50/SF
NOI
$26.0K $5.49/SF
Area
Bay County, MI
Vacancy
5.40%
Lease Rate
$10.56 /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%
$519,880
Cap Rate 7%
$371,343
Cap Rate 9%
$288,822
Alternative Uses
Best Use
Apartment 5plus
$371.3K
$324.9K – $433.2K
NOI $25,994 @ 7.0% cap · market cap 6.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$856.4K
$749.4K – $999.2K
NOI $59,951 @ 7.0% cap · market cap 14.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
394
Businesses Nearby
Explore this area
Business Placement
Demographics for 48708, MI
25,860
Population
12,625
Households
2
Avg Household Size
41
Median Age
17%
College-Educated
89%
High-School Grad
29.1 sq mi
ZIP Area
889
Density / Sq Mi
$50,216
Median Household Income
$31,978
Median Earnings
$703
Median Rent
$98,500
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?
Apartment building - Seven-unit apartment building with a detached garage and off-street parking, plus recent steam boiler and roof improvements.
Where is this apartment building located?
The property is located at 1500 CENTER AVE Bay City, MI.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: 7‑unit apartment building built in 1876 on the Center Avenue corridor in Bay City; Recent improvements include a complete rebuild of the steam boiler system; Roof updates include a new porch roof and a new garage roof
