Historic Corner Mixed-Use
For Sale
$585,000
227 E Michigan Avenue, Marshall, MI 49068
Includes a restored showroom, a transferable short-term rental, and a one-bedroom loft with separate entries.
Property Size3,701 SF
Days on Market27
Property Features for 227 E Michigan Avenue
General Information
Standard status
Active
Size
3,701 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$4,985
Building Details
Building Size
3,701 SF
Year Built
1865
Buildings
1
Stories
3706
Units
3
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate
(269) 209-4076
Listed By:
Carole Shapiro · License #6506033200
Source:
Erareardonrealty
Added: Aug 4
Changed: Aug 29
Last Checked: Aug 29 at 9:11AM
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 Berkshire Hathaway HomeServices Michigan Real Estate
Investment Insights
Based on property information with market context.
Constructed in 1865 as a bank, this downtown Marshall corner property now combines a restored street-level showroom with two distinct second-floor residential components. The showroom features 15-foot ceilings, period crown molding and woodwork, a marble fireplace, five display windows, and a lockable walk-in vault. Upstairs, a transferable Airbnb with 5-Star Superhost status includes a private balcony, while a separate one-bedroom urban loft offers its own entry and staircase. A private passageway connects the residences and includes a washer, dryer, and housekeeping storage.
The third floor was used in the 1800s and could provide expansion space. Additional features include a 500 square foot rooftop patio and garden, 2+ private parking spaces, street parking, and access to a free city parking garage behind the property. A new boiler was installed in 2025, along with a mini split heat and AC unit serving the first floor. The property is located at 227 E Michigan Avenue in Marshall, Michigan.
The third floor was used in the 1800s and could provide expansion space. Additional features include a 500 square foot rooftop patio and garden, 2+ private parking spaces, street parking, and access to a free city parking garage behind the property. A new boiler was installed in 2025, along with a mini split heat and AC unit serving the first floor. The property is located at 227 E Michigan Avenue in Marshall, Michigan.
Key Highlights
- 1865‑built corner property at 227 E Michigan Avenue in downtown Marshall, MI
- Restored showroom with 15‑foot ceilings, period woodwork, marble fireplace, five display windows, and walk‑in vault
- Second floor includes a transferable Airbnb with 5‑Star Superhost status and a one‑bedroom urban loft
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
$45,966
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
7.86%
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%
$919,320
$919.3K
Cap Rate 7%
$656,657
$656.7K
Cap Rate 9%
$510,733
$510.7K
Market Conditions
NOI Build-Up for 3,701 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
$79.9K $21.60/SF
− Vacancy
−$6.4K −$1.73/SF
EGI
$73.5K $19.87/SF
− OpEx
−$27.6K −$7.45/SF
NOI
$46.0K $12.42/SF
Area
Calhoun County, MI
Vacancy
8.00%
Lease Rate
$21.60 /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%
$919,320
Cap Rate 7%
$656,657
Cap Rate 9%
$510,733
Alternative Uses
Best Use
Mixed Use
$656.7K
$574.6K – $766.1K
NOI $45,966 @ 7.0% cap · market cap 7.86%
Second Best
Retail
$548.9K
$480.3K – $640.3K
NOI $38,420 @ 7.0% cap · market cap 6.57%
Theoretical Best
Healthcare Medical
$43.90M
$38.41M – $51.22M
NOI $3,073,181 @ 7.0% cap · market cap 525.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
752
Businesses Nearby
Explore this area
Business Placement
Demographics for 49068, MI
14,325
Population
6,901
Households
2.1
Avg Household Size
45
Median Age
36%
College-Educated
96%
High-School Grad
129.9 sq mi
ZIP Area
110
Density / Sq Mi
$78,476
Median Household Income
$47,198
Median Earnings
$904
Median Rent
$196,800
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Mixed-use property - Includes a restored showroom, a transferable short-term rental, and a one-bedroom loft with separate entries.
Where is this mixed-use property located?
The property is located at 227 E Michigan Avenue Marshall, MI.
What is the asking price?
The asking price for this property is $585,000.
What are key features of this property?
This property features: 1865‑built corner property at 227 E Michigan Avenue in downtown Marshall, MI; Restored showroom with 15‑foot ceilings, period woodwork, marble fireplace, five display windows, and walk‑in vault; Second floor includes a transferable Airbnb with 5‑Star Superhost status and a one‑bedroom urban loft
