Restored Building on
For Sale
$549,900
2250 E Main, Owosso, MI 48867
Commercial building on almost 5 acres, move-in ready.
Property Size2,070 SF
Lot Size5.00 Acres
Days on Market141
Property Features for 2250 E Main
General Information
Standard status
Active
Size
2,070 SF
Lot size
5.00 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,977
Building Details
Building Size
2,070 SF
Year Built
1919
Listing Agency:
American Associates REALTORS
(810) 733-3333
Listed By:
Debbie Caldwell · License #6502136257
(810) 733-3333
Source:
Elliman
Added: Apr 3
Changed: Aug 17
Last Checked: Aug 20 at 10:46AM
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 American Associates REALTORS
Investment Insights
Based on property information with market context.
This commercial property is located on the highly traveled M-21 and features a restored building on almost 5 acres. The building includes newer windows on the main floor, a newer roof, and newer porch and decking. Updated plumbing and 400 amp electrical service are in place. The furnace was installed in 2018, and central air was installed in 2022. The property also features double hot water heaters and a new well pump. A 25-foot driveway leads to a parking lot with space for 23 to 24 cars. The building includes an upstairs apartment, a full attic space, and a basement with storage space. The last use of the property was as an ice cream shop with drive-through pickup. It is move-in ready and suitable for various businesses, including a bakery, coffee shop, office, or boutique.
Key Highlights
- Prime commercial location on highly traveled M‑21.
- Beautifully restored building on almost 5 acres.
- Move‑in ready condition suitable for various businesses (bakery, coffee shop, office, boutique).
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
$20,791
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
3.78%
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%
$415,820
$415.8K
Cap Rate 7%
$297,014
$297.0K
Cap Rate 9%
$231,011
$231.0K
Market Conditions
NOI Build-Up for 2,070 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
$29.8K $14.40/SF
− Vacancy
−$2.1K −$1.01/SF
EGI
$27.7K $13.39/SF
− OpEx
−$6.9K −$3.35/SF
NOI
$20.8K $10.04/SF
Area
Shiawassee County, MI
Vacancy
7.00%
Lease Rate
$14.40 /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%
$415,820
Cap Rate 7%
$297,014
Cap Rate 9%
$231,011
Alternative Uses
Best Use
Specialty Retail
$297.0K
$259.9K – $346.5K
NOI $20,791 @ 7.0% cap · market cap 3.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$394.7K
$345.3K – $460.4K
NOI $27,626 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Explore this area
Business Placement
Demographics for 48867, MI
27,596
Population
12,660
Households
2.2
Avg Household Size
42
Median Age
20%
College-Educated
92%
High-School Grad
136.0 sq mi
ZIP Area
203
Density / Sq Mi
$58,718
Median Household Income
$37,908
Median Earnings
$834
Median Rent
$145,600
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?
Drive through restaurant - Commercial building on almost 5 acres, move-in ready.
Where is this drive through restaurant located?
The property is located at 2250 E Main Owosso, MI.
What is the asking price?
The asking price for this property is $549,900.
What are key features of this property?
This property features: Prime commercial location on highly traveled M‑21.; Beautifully restored building on almost 5 acres.; Move‑in ready condition suitable for various businesses (bakery, coffee shop, office, boutique).
