Six-Unit Apartment
For Sale
$1,485,000
1506 Packard St, Ann Arbor, MI 48104
R4C-zoned residential property with a six-unit configuration and established architectural character.
Property Size3,744 SF
Days on Market148
Property Features for 1506 Packard St
General Information
Standard status
Active
Size
3,744 SF
Property subtype
Multi-Family
Building Details
Building Size
3,744 SF
Year Built
1924
Units
6
Listing Agency:
Altitude Commercial Real Estate
(248) 781-8076
Listed By:
George Abro · License #6502432561
Source:
Commercialcafe
Added: Apr 7
Changed: Aug 29
Last Checked: Aug 29 at 3:36PM
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 Altitude Commercial Real Estate
Investment Insights
Based on property information with market context.
This apartment building contains 3,744 square feet and six units within a structure built in 1924. The property retains historic architectural details and is described as well maintained, combining older construction with modern convenience. R4C zoning supports its multifamily classification.
Located at 1506 Packard St in Ann Arbor, the property is near the University of Michigan and the city’s dining, entertainment, and shopping options. Zingerman’s Delicatessen and Matthaei Botanical Gardens are identified as nearby attractions. Ann Arbor is also recognized in the source information for its academic and innovation-oriented environment.
Located at 1506 Packard St in Ann Arbor, the property is near the University of Michigan and the city’s dining, entertainment, and shopping options. Zingerman’s Delicatessen and Matthaei Botanical Gardens are identified as nearby attractions. Ann Arbor is also recognized in the source information for its academic and innovation-oriented environment.
Key Highlights
- 3,744‑square‑foot apartment building with 6 units
- Built in 1924 with historic architectural details
- R4C zoning
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
$42,597
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
2.87%
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%
$851,940
$851.9K
Cap Rate 7%
$608,529
$608.5K
Cap Rate 9%
$473,300
$473.3K
Market Conditions
NOI Build-Up for 3,744 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
$82.2K $21.96/SF
− Vacancy
−$4.8K −$1.27/SF
EGI
$77.4K $20.69/SF
− OpEx
−$34.9K −$9.31/SF
NOI
$42.6K $11.38/SF
Area
Ann Arbor, MI
Vacancy
5.80%
Lease Rate
$21.96 /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%
$851,940
Cap Rate 7%
$608,529
Cap Rate 9%
$473,300
Alternative Uses
Best Use
Apartment 5plus
$608.5K
$532.5K – $710.0K
NOI $42,597 @ 7.0% cap · market cap 2.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$826.9K
$723.5K – $964.7K
NOI $57,882 @ 7.0% cap · market cap 3.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
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 - R4C-zoned residential property with a six-unit configuration and established architectural character.
Where is this apartment building located?
The property is located at 1506 Packard St Ann Arbor, MI.
What is the asking price?
The asking price for this property is $1,485,000.
What are key features of this property?
This property features: 3,744‑square‑foot apartment building with 6 units; Built in 1924 with historic architectural details; R4C zoning
