Historic Mixed-Use Corner
New
For Sale
$549,000
227 E Michigan Ave, Marshall, MI 49068
Restored commercial property with a showroom, two second-floor living spaces, and separate private entrances.
Property Size3,701 SF
Price / SF$148.34
Days on Market3
Property Features for 227 E Michigan Ave
General Information
Standard status
Active
Size
3,701 SF
Financials
Asking Price
$585,000
Business Included
Yes
Additional Details
Corner Location
Yes
Amenities
private balcony
rooftop patio/garden
marble fireplace
washer and dryer
private owner's passageway
private staircase and entry
15-foot ceilings with period crown molding and woodwork
display windows
lockable walk-in vault
Building Details
Year Built
1865
Buildings
1
Stories
3
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate
Listed By:
Carole Shapiro · License #6506033200
(269) 209-4076
Source:
Katie-k
Added: Sep 13
Last Checked: Sep 14 at 4:27PM
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, this 3,701-square-foot mixed-use building combines a restored first-floor showroom with two distinct second-floor residential spaces. The showroom features 15-foot ceilings, period crown molding and woodwork, a marble fireplace, five display windows, and a lockable walk-in vault. Upstairs, one space operates as a transferable 5-Star Superhost Airbnb with a private balcony, while the other is a one-bedroom urban loft apartment. Each has its own staircase and entrance, with a private connecting passage that includes laundry equipment and housekeeping storage.
The property also includes a 500-square-foot rooftop patio and garden, two or more private parking spaces, and access to additional guest and customer parking on the street or in the free city parking garage behind the building. A new boiler was installed in 2025, and the first floor has a mini-split heating and cooling unit. The third floor, historically used in the 1800s, may provide expansion space.
The property also includes a 500-square-foot rooftop patio and garden, two or more private parking spaces, and access to additional guest and customer parking on the street or in the free city parking garage behind the building. A new boiler was installed in 2025, and the first floor has a mini-split heating and cooling unit. The third floor, historically used in the 1800s, may provide expansion space.
Key Highlights
- 3,701‑square‑foot mixed‑use building constructed in 1865
- Restored showroom with 15‑foot ceilings, marble fireplace, five display windows, and walk‑in vault
- Second floor includes a transferable 5‑Star Superhost Airbnb and a one‑bedroom loft apartment
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
8.37%
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 8.37%
Second Best
Retail
$548.9K
$480.3K – $640.3K
NOI $38,420 @ 7.0% cap · market cap 7.00%
Theoretical Best
Healthcare Medical
$43.90M
$38.41M – $51.22M
NOI $3,073,181 @ 7.0% cap · market cap 559.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
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
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Restored commercial property with a showroom, two second-floor living spaces, and separate private entrances.
Where is this mixed-use property located?
The property is located at 227 E Michigan Ave Marshall, MI.
What is the asking price?
The asking price for this property is $549,000.
What are key features of this property?
This property features: 3,701‑square‑foot mixed‑use building constructed in 1865; Restored showroom with 15‑foot ceilings, marble fireplace, five display windows, and walk‑in vault; Second floor includes a transferable 5‑Star Superhost Airbnb and a one‑bedroom loft apartment
