High-Traffic Commercial Property with Living
For Sale
$510,000
2604 S 11th St, Niles, MI 49120
Versatile commercial property with living space on high-traffic street.
Property Size3,200 SF
Lot Size0.96 Acres
Price / SF$159.38
Days on Market153
Property Features for 2604 S 11th St
General Information
Standard status
Active
Size
3,200 SF
Lot size
0.96 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,241
Building Details
Year Built
1993
Units
1
Listing Agency:
D Mottl Realty Group LLC
(269) 591-0036
Listed By:
Allexia L Money
(269) 591-0036
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 6:22AM
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 D Mottl Realty Group LLC
Investment Insights
Based on property information with market context.
This 40x80 commercial property is located on high-traffic 11th Street in Niles. The building, formerly a machine shop, has been cleaned and prepped. It features a 12x12 overhead door, three-phase electric, and compressed air lines throughout, powered by a compressor housed in the rear shed. The interior includes two offices, a full bath, and a loft for storage. A separate living quarters features a bedroom, kitchen, full bath, and private entrance, suitable for live/work use or on-site management. The deep lot provides ample parking and potential for an additional structure, making it suitable for a public-facing retail space. This versatile property could serve a wide range of business types, including a machine shop, repair or fabrication facility, vehicle customization shop, storage operation, catering kitchen, or fulfillment center. The property is on the Indiana-Michigan River Valley Paved Trail.
Key Highlights
- High‑traffic location on 11th Street in Niles.
- Separate living quarters with private entrance (bedroom, kitchen, full bath) for live/work or on‑site management.
- Three‑phase electric and compressed air lines throughout the 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
$35,252
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
6.91%
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%
$705,040
$705.0K
Cap Rate 7%
$503,600
$503.6K
Cap Rate 9%
$391,689
$391.7K
Market Conditions
NOI Build-Up for 3,200 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
$54.5K $17.04/SF
− Vacancy
−$7.5K −$2.35/SF
EGI
$47.0K $14.69/SF
− OpEx
−$11.8K −$3.67/SF
NOI
$35.3K $11.02/SF
Area
Berrien County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$705,040
Cap Rate 7%
$503,600
Cap Rate 9%
$391,689
Alternative Uses
Best Use
Office B
$503.6K
$440.7K – $587.5K
NOI $35,252 @ 7.0% cap · market cap 6.91%
Second Best
Retail
$474.6K
$415.2K – $553.7K
NOI $33,219 @ 7.0% cap · market cap 6.51%
Theoretical Best
Office A
$673.4K
$589.2K – $785.6K
NOI $47,136 @ 7.0% cap · market cap 9.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
179
Businesses Nearby
Explore this area
Business Placement
Demographics for 49120, MI
37,076
Population
15,581
Households
2.4
Avg Household Size
43
Median Age
21%
College-Educated
92%
High-School Grad
116.5 sq mi
ZIP Area
318
Density / Sq Mi
$61,940
Median Household Income
$38,779
Median Earnings
$911
Median Rent
$166,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile commercial property with living space on high-traffic street.
Where is this mixed-use property located?
The property is located at 2604 S 11th St Niles, MI.
What is the asking price?
The asking price for this property is $510,000.
What are key features of this property?
This property features: High‑traffic location on 11th Street in Niles.; Separate living quarters with private entrance (bedroom, kitchen, full bath) for live/work or on‑site management.; Three‑phase electric and compressed air lines throughout the building.
