Ground-Floor Office
For Sale
$135,000
216 E Ludington Street, Iron Mountain, MI 49801
COM/IND/BUS OPP, Iron Mountain, MI
Property Size833 SF
Price / SF$162.06
Days on Market263
Property Features for 216 E Ludington Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Commercial
Parking features
Off Street
Subdivision
Iron Mountain (22007)
Standard status
Active
Size
833 SF
Taxes and HOA fees
Tax Annual Amount
1678
Utilities
Heating system
Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1891
Roof type
Rubber
Listing Agency:
STEPHENS REAL ESTATE
(906) 774-8570
Listed By:
RYAN GORDON · License #6502420131
(906) 282-1644
Added: Dec 1, 2025
Changed: Aug 19
Last Checked: Aug 21 at 2:06AM
MLS# 50195384
Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This compact ground-floor office suite is located within the historic 1891 Sandstone Condominiums building. The space features an efficient layout with a reception/front desk area, two light and bright individual offices, and a private restroom.
The property is situated in the heart of downtown Iron Mountain, with visibility and heavy foot traffic.
Zoned for commercial use, the suite offers a practical configuration for office operations within a historic mixed-use condominium setting.
The property is situated in the heart of downtown Iron Mountain, with visibility and heavy foot traffic.
Zoned for commercial use, the suite offers a practical configuration for office operations within a historic mixed-use condominium setting.
Key Highlights
- Prime downtown location with excellent visibility and heavy foot traffic.
- Efficient floorplan features a reception area, two private offices, and private restroom.
- Located in the historic 1891 Sandstone Condominiums building.
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
$8,783
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
6.51%
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%
$175,660
$175.7K
Cap Rate 7%
$125,471
$125.5K
Cap Rate 9%
$97,589
$97.6K
Market Conditions
NOI Build-Up for 833 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
$15.0K $18.00/SF
− Vacancy
−$3.3K −$3.94/SF
EGI
$11.7K $14.06/SF
− OpEx
−$2.9K −$3.51/SF
NOI
$8.8K $10.54/SF
Area
Dickinson County, MI
Vacancy
21.90%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$175,660
Cap Rate 7%
$125,471
Cap Rate 9%
$97,589
Alternative Uses
Best Use
Office B
$125.5K
$109.8K – $146.4K
NOI $8,783 @ 7.0% cap · market cap 6.51%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$160.6K
$140.5K – $187.4K
NOI $11,242 @ 7.0% cap · market cap 8.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
674
Businesses Nearby
Explore this area
Business Placement
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Compact ground-floor office suite with a reception area, two offices, and a private restroom.
Where is this office units located?
The property is located at 216 E Ludington Street Iron Mountain, MI.
What is the asking price?
The asking price for this property is $135,000.
What are key features of this property?
This property features: Prime downtown location with excellent visibility and heavy foot traffic.; Efficient floorplan features a reception area, two private offices, and private restroom.; Located in the historic 1891 Sandstone Condominiums building.
