Two-Suite Professional Office
For Sale
$275,000
216 E Ludington Street, Iron Mountain, MI 49801
COM/IND/BUS OPP, Iron Mountain, MI
Property Size1,783 SF
Price / SF$154.23
Days on Market278
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
1,783 SF
Taxes and HOA fees
Tax Annual Amount
3977
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: Sep 4
Last Checked: Sep 5 at 12:06PM
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 1,783-square-foot commercial office property consists of two separate ground-floor suites within the historic 1891 Sandstone Condominiums building. Each suite includes a reception or front desk area, two private offices, and an individual restroom; one also provides a kitchenette. The suites can be connected to create one larger office configuration. Commercial zoning supports office use, while forced-air heating, central air, and a rubber roof are existing building features.
The property is positioned in downtown Iron Mountain on E Ludington Street, with street-level access and two dedicated off-street parking spaces. Public water serves the building. The two-suite layout offers separate office configurations within a single property, with the flexibility to combine the spaces when a larger footprint is preferred.
The property is positioned in downtown Iron Mountain on E Ludington Street, with street-level access and two dedicated off-street parking spaces. Public water serves the building. The two-suite layout offers separate office configurations within a single property, with the flexibility to combine the spaces when a larger footprint is preferred.
Key Highlights
- 1,783 square feet of office space across two separate suites
- Two ground‑floor professional office suites in the 1891 Sandstone Condominiums building
- Each suite includes reception space, two private offices, and a private restroom
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
$18,799
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
6.84%
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%
$375,980
$376.0K
Cap Rate 7%
$268,557
$268.6K
Cap Rate 9%
$208,878
$208.9K
Market Conditions
NOI Build-Up for 1,783 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
$32.1K $18.00/SF
− Vacancy
−$7.0K −$3.94/SF
EGI
$25.1K $14.06/SF
− OpEx
−$6.3K −$3.51/SF
NOI
$18.8K $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%
$375,980
Cap Rate 7%
$268,557
Cap Rate 9%
$208,878
Alternative Uses
Best Use
Office B
$268.6K
$235.0K – $313.3K
NOI $18,799 @ 7.0% cap · market cap 6.84%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$343.8K
$300.8K – $401.1K
NOI $24,063 @ 7.0% cap · market cap 8.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Multi-tenant
Tenancy
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 - Ground-floor offices feature reception areas, private restrooms, and a kitchenette.
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 $275,000.
What are key features of this property?
This property features: 1,783 square feet of office space across two separate suites; Two ground‑floor professional office suites in the 1891 Sandstone Condominiums building; Each suite includes reception space, two private offices, and a private restroom
