Freestanding Retail Redevelopment
For Sale
Contact for pricing
1603 S Main St, Chelsea, MI 48118
Freestanding retail property on a 6.38-acre site zoned T-1 for retail and mixed-use redevelopment.
Property Size28,962 SF
Price / SF$172.64
Days on Market228
Property Features for 1603 S Main St
General Information
Standard status
Active
Size
28,962 SF
Property subtype
RETAIL
Listing Agency:
Keystone Commercial Real Estate
(248) 356-8000
Listed By:
Greg Newman · License #6501288543
(248) 356-8000
Source:
Moodyscre
Added: Jan 5
Changed: Aug 8
Last Checked: Aug 8 at 8:13PM
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 Keystone Commercial Real Estate
Investment Insights
Based on property information with market context.
This freestanding retail property sits on a 6.38-acre site and is offered for reuse or redevelopment. The site is zoned T-1 (Transition Mixed Use), which allows a variety of retail and mixed-use uses.
The property is located at 1603 S Main St in Chelsea, MI, centrally near downtown Chelsea with convenient access to I-94. The configuration supports a range of ownership and development approaches for buyers seeking flexible uses under the current zoning.
A centrally located retail site with T-1 zoning provides a practical platform for planned reuse or redevelopment, subject to all applicable approvals.
The property is located at 1603 S Main St in Chelsea, MI, centrally near downtown Chelsea with convenient access to I-94. The configuration supports a range of ownership and development approaches for buyers seeking flexible uses under the current zoning.
A centrally located retail site with T-1 zoning provides a practical platform for planned reuse or redevelopment, subject to all applicable approvals.
Key Highlights
- 6.38‑acre site offering reuse or redevelopment potential
- Zoned T‑1 (Transition Mixed Use) allowing a variety of retail and mixed‑use uses
- Prominent freestanding building on S Main Street in Chelsea
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
$393,811
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
7.88%
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%
$7,876,220
$7.9M
Cap Rate 7%
$5,625,871
$5.6M
Cap Rate 9%
$4,375,678
$4.4M
Market Conditions
NOI Build-Up for 28,962 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
$608.2K $21.00/SF
− Vacancy
−$45.6K −$1.58/SF
EGI
$562.6K $19.43/SF
− OpEx
−$168.8K −$5.83/SF
NOI
$393.8K $13.60/SF
Area
Washtenaw County, MI
Vacancy
7.50%
Lease Rate
$21.00 /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%
$7,876,220
Cap Rate 7%
$5,625,871
Cap Rate 9%
$4,375,678
Alternative Uses
Best Use
Retail
$5.63M
$4.92M – $6.56M
NOI $393,811 @ 7.0% cap · market cap 7.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.51M
$7.45M – $9.93M
NOI $595,690 @ 7.0% cap · market cap 11.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
306
Businesses Nearby
123k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 27%
Electronics 4%
Hotels & Casinos 2%
McDonald's
Dining
26,799 visits/mo
0.1 miles
Culver's
Dining
26,046 visits/mo
0.0 miles
Shell
Shops & Services
25,837 visits/mo
0.1 miles
Starbucks
Dining
13,646 visits/mo
0.0 miles
Wendy's
Dining
10,650 visits/mo
0.2 miles
Demographics for 48118, MI
13,309
Population
5,864
Households
2.3
Avg Household Size
48
Median Age
51%
College-Educated
98%
High-School Grad
86.2 sq mi
ZIP Area
154
Density / Sq Mi
$87,934
Median Household Income
$55,637
Median Earnings
$1,576
Median Rent
$348,500
Median Home Value
Market
Vacancy Rate% for Retail 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?
Retail space - Freestanding retail property on a 6.38-acre site zoned T-1 for retail and mixed-use redevelopment.
Where is this retail space located?
The property is located at 1603 S Main St Chelsea, MI.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: 6.38‑acre site offering reuse or redevelopment potential; Zoned T‑1 (Transition Mixed Use) allowing a variety of retail and mixed‑use uses; Prominent freestanding building on S Main Street in Chelsea
