Downtown Ann Arbor Mixed-Use
For Sale
$1,075,000
208 E Washington St Ann, Ann Arbor, MI 48104
Prime location with retail and office/residential potential.
Property Size3,624 SF
Price / SF$296.63
Days on Market90
Property Features for 208 E Washington St Ann
General Information
Standard status
Active
Size
3,624 SF
Property subtype
MultiFamily Apartments
Building Details
Building Size
3,624 SF
Year Built
1968
Listing Agency:
Swisher Commercial
(734) 222-7522
Listed By:
Michael Jurgenson, CCIM · License ##6506044472
(734) 222-7522
Source:
Thebrokerlist
Added: May 27
Changed: Aug 23
Last Checked: Aug 23 at 7:32AM
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 Swisher Commercial
Investment Insights
Based on property information with market context.
Located in downtown Ann Arbor, just off Main Street between Fourth and Fifth Avenue, this 3,624 square foot, two-story building offers exceptional potential. The D1 zoning allows for versatile mixed-use opportunities, including street-level retail and second-floor office or residential conversion. This property is suitable for owner/users or investors looking to capitalize on Ann Arbor’s vibrant downtown market. The building includes a long-term existing street-level retail tenant providing immediate income and prime second-floor office space to lease, convert, or occupy as an owner/user. The property is situated steps from Main Street, surrounded by dining, shopping, and cultural attractions. A parking structure is located just half a block away. This property offers potential and visibility in a high-traffic location.
Key Highlights
- Prime Downtown Ann Arbor location, just off Main Street
- Versatile D1 zoning allows for mixed‑use opportunities
- Existing long‑term street‑level retail tenant provides immediate income
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
$42,510
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
3.95%
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%
$850,200
$850.2K
Cap Rate 7%
$607,286
$607.3K
Cap Rate 9%
$472,333
$472.3K
Market Conditions
NOI Build-Up for 3,624 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
$73.9K $20.40/SF
− Vacancy
−$5.9K −$1.63/SF
EGI
$68.0K $18.77/SF
− OpEx
−$25.5K −$7.04/SF
NOI
$42.5K $11.73/SF
Area
Ann Arbor, MI
Vacancy
8.00%
Lease Rate
$20.40 /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%
$850,200
Cap Rate 7%
$607,286
Cap Rate 9%
$472,333
Alternative Uses
Best Use
Mixed Use
$607.3K
$531.4K – $708.5K
NOI $42,510 @ 7.0% cap · market cap 3.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$800.4K
$700.3K – $933.8K
NOI $56,026 @ 7.0% cap · market cap 5.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,579
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Prime location with retail and office/residential potential.
Where is this mixed-use property located?
The property is located at 208 E Washington St Ann Ann Arbor, MI.
What is the asking price?
The asking price for this property is $1,075,000.
What are key features of this property?
This property features: Prime Downtown Ann Arbor location, just off Main Street; Versatile D1 zoning allows for mixed‑use opportunities; Existing long‑term street‑level retail tenant provides immediate income
