Apartment Building with Geothermal
For Sale
$4,300,000
26095 Taft Road, Novi, MI 48374
Existing building offers 12 one-bedroom apartments with geothermal heating and cooling, plus community room and dining space.
Property Size17,359 SF
Lot Size11.53 Acres
Price / SF$247.71
Days on Market97
Property Features for 26095 Taft Road
General Information
Standard status
Active
Size
17,359 SF
Lot size
11.53 Acres
Property subtype
Land
Zoning
RT-PRO & R1 Residential
Additional Details
Multifamily Units
12
Amenities
community room
dining room
commercial kitchen
Building Details
Year Built
2009
Listing Agency:
Thomas A. Duke Company
Listed By:
Mark Schafer · License #6501271064
(248) 479-0124
Source:
Thomasduke
Added: Jun 2
Changed: Sep 3
Last Checked: Sep 5 at 5:31AM
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 Thomas A. Duke Company
Investment Insights
Based on property information with market context.
The property is an apartment building totaling 17,359 square feet on 11.53 acres, with geothermal heating and cooling servicing 12 one-bedroom apartments. Common amenities include a community room and a dining room, along with a commercial kitchen. The building is further supported by a natural gas generator.
According to public remarks, the site presents a redevelopment opportunity and is zoned RT-PRO & R1 Residential. The property is located at 26095 Taft Road in Novi, Michigan.
The current configuration consists of residential units along with shared spaces for dining and community use, making the asset suited to either continued operation or redevelopment per the stated zoning.
According to public remarks, the site presents a redevelopment opportunity and is zoned RT-PRO & R1 Residential. The property is located at 26095 Taft Road in Novi, Michigan.
The current configuration consists of residential units along with shared spaces for dining and community use, making the asset suited to either continued operation or redevelopment per the stated zoning.
Key Highlights
- 17,359 SF building on 11.53 acres built in 2009
- Zoned RT‑PRO & R1 Residential
- 12 one‑bedroom apartments with geothermal heating and cooling
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
$212,930
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
4.95%
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%
$4,258,600
$4.3M
Cap Rate 7%
$3,041,857
$3.0M
Cap Rate 9%
$2,365,889
$2.4M
Market Conditions
NOI Build-Up for 17,359 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
$404.1K $23.28/SF
− Vacancy
−$17.0K −$0.98/SF
EGI
$387.1K $22.30/SF
− OpEx
−$174.2K −$10.04/SF
NOI
$212.9K $12.27/SF
Area
Oakland County, MI
Vacancy
4.20%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
45.00%
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%
$4,258,600
Cap Rate 7%
$3,041,857
Cap Rate 9%
$2,365,889
Alternative Uses
Best Use
Apartment 5plus
$3.04M
$2.66M – $3.55M
NOI $212,930 @ 7.0% cap · market cap 4.95%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.74M
$3.28M – $4.37M
NOI $262,093 @ 7.0% cap · market cap 6.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
252
Businesses Nearby
Explore this area
Business Placement
Demographics for 48374, MI
18,008
Population
5,840
Households
3.1
Avg Household Size
39
Median Age
69%
College-Educated
97%
High-School Grad
9.1 sq mi
ZIP Area
1,979
Density / Sq Mi
$185,203
Median Household Income
$99,962
Median Earnings
$2,849
Median Rent
$551,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Existing building offers 12 one-bedroom apartments with geothermal heating and cooling, plus community room and dining space.
Where is this apartment building located?
The property is located at 26095 Taft Road Novi, MI.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: 17,359 SF building on 11.53 acres built in 2009; Zoned RT‑PRO & R1 Residential; 12 one‑bedroom apartments with geothermal heating and cooling
