Muskegon Retail Property For
For Sale
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2703 Henry St, Muskegon, MI 49441
Net-leased retail asset with long-term tenant and growth potential.
Property Size7,000 SF
Lot Size0.68 Acres
Price / SF$128.57
Days on Market176
Property Features for 2703 Henry St
General Information
Standard status
Active
Size
7,000 SF
Total Parking Spaces
35
Lot size
0.68 Acres
Property subtype
Retail
Zoning
C-1 | C-NE (Commercial)
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$63,000
Building Details
Year Built
1999
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
SAB Capital
Listed By:
Asher Wenig · License #10301219652
Source:
Crexi
Added: Feb 25
Changed: Aug 8
Last Checked: Aug 8 at 2:38PM
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 SAB Capital
Investment Insights
Based on property information with market context.
The property at 2703 Henry Street in Muskegon, Michigan, is a single-tenant, net-leased retail asset occupied by Advance Auto Parts. Constructed in 1999, the building features masonry and concrete block construction and a functional layout. The property includes approximately 7,000 square feet of rentable area on a 0.68-acre parcel. Advance Auto Parts has been operating at this location for 27 years and is currently under a passive net lease expiring in May 2032, with two five-year renewal options. These options include contractual rent increases of 19% and 8%, respectively. The current rent is $9 per square foot. The property is located within the Muskegon Heights retail corridor, with traffic exposure of approximately 15,700 vehicles per day, and proximity to US-31. The surrounding submarket has a retail vacancy rate near 2.6%. The property has C-1 zoning.
Key Highlights
- Long‑term tenant (Advance Auto Parts) with 27 years of operating history, demonstrating the site's strategic importance.
- Passive net lease to Advance Auto Parts with lease expiration in May 2032, plus two five‑year renewal options with contractual rent increases.
- Below‑market rent ($9/SF) provides significant mark‑to‑market upside potential.
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
$67,145
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
7.46%
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%
$1,342,900
$1.3M
Cap Rate 7%
$959,214
$959.2K
Cap Rate 9%
$746,056
$746.1K
Market Conditions
NOI Build-Up for 7,000 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
$98.3K $14.04/SF
− Vacancy
−$2.4K −$0.34/SF
EGI
$95.9K $13.70/SF
− OpEx
−$28.8K −$4.11/SF
NOI
$67.1K $9.59/SF
Area
Muskegon County, MI
Vacancy
2.40%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
30.00%
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%
$1,342,900
Cap Rate 7%
$959,214
Cap Rate 9%
$746,056
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.51M
NOI $90,488 @ 7.0% cap · market cap 10.05%
Second Best
Industrial
$959.2K
$839.3K – $1.12M
NOI $67,145 @ 7.0% cap · market cap 7.46%
Theoretical Best
Hotel Hospitality
$65.74M
$57.52M – $76.69M
NOI $4,601,606 @ 7.0% cap · market cap 511.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
625
Businesses Nearby
188k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 39%
Dining 26%
Groceries 19%
Home Improvements & Furnishings 14%
The Home Depot
Home Improvements & Furnishings
26,924 visits/mo
0.1 miles
Aldi
Groceries
18,796 visits/mo
0.1 miles
Dollar Tree
Shops & Services
17,655 visits/mo
0.0 miles
Gordon Food Service
Groceries
17,419 visits/mo
0.0 miles
Taco Bell
Dining
14,163 visits/mo
0.3 miles
Demographics for 49441, MI
36,886
Population
16,491
Households
2.2
Avg Household Size
43
Median Age
28%
College-Educated
94%
High-School Grad
21.7 sq mi
ZIP Area
1,700
Density / Sq Mi
$65,235
Median Household Income
$38,132
Median Earnings
$1,080
Median Rent
$194,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Automotive property - Net-leased retail asset with long-term tenant and growth potential.
Where is this automotive property located?
The property is located at 2703 Henry St Muskegon, MI.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Long‑term tenant (Advance Auto Parts) with 27 years of operating history, demonstrating the site's strategic importance.; Passive net lease to Advance Auto Parts with lease expiration in May 2032, plus two five‑year renewal options with contractual rent increases.; Below‑market rent ($9/SF) provides significant mark‑to‑market upside potential.
