Four-Tenant NNN Commercial
New
For Sale
$2,390,000
2751 N US-31 S, Traverse City, MI 49684
Commercial, Traverse City, MI
Property Size13,550 SF
Lot Size1.28 Acres
Price / SF$176.38
Days on Market1
Property Features for 2751 N US-31 S
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Commercial
Bathrooms
7
Full bathrooms
7
Rooms
Bathroom 2, Bathroom 3, Bathroom 1, Bathroom 6, Bathroom 5, Bathroom 7, Bathroom 4
Parking features
Parking Lot
Exterior features
Stucco/Drivit
Lot features
Freestanding
Directions
From Traverse CIty take US-31 (Division Street) south to just north of Airport Road on West Side next to Red Lobster and across from Chix Filet
Subdivision
Grand Traverse
Standard status
Active
Size
13,550 SF
Lot size
1.28 Acres
Taxes and HOA fees
Tax Description
PRT NE 1/4 OF NW 1/4 SEC 21 T27N R11W BEG 462' N OF SE COR TH S 89 DEG 59' W 298.49' TH N 0 DEG 33' W 187.36' TH N 90 DEG E 298.49' TH S 0 DEG 33' E 187.31' TO POB EXC HWY R/W
Legal Description
PRT NE 1/4 OF NW 1/4 SEC 21 T27N R11W BEG 462' N OF SE COR TH S 89 DEG 59' W 298.49' TH N 0 DEG 33' W 187.36' TH N 90 DEG E 298.49' TH S 0 DEG 33' E 187.31' TO POB EXC HWY R/W
Building Details
Building materials
Block, Frame
Roof type
Membrane
Listing Agency:
Twin Bay Properties, LLC
(231) 357-7800
Listed By:
David Cutler · License #6502417683
(231) 357-7800
Added: Aug 24
Last Checked: Aug 24 at 7:06PM
MLS# 1949731
Copyright © 2026 Northern Great Lakes Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 13,550-square-foot commercial property occupies 1.28 acres and is fully leased to four tenants. Each tenancy is structured as true triple-net, with newer or recently renewed lease agreements that include annual rent increases. The improvements feature block and frame construction, stucco/Drivit exterior finishes, a membrane roof, and an on-site parking lot.
The property fronts US-31 in Garfield Township, adjacent to Red Lobster and opposite Chick-fil-A. Its Traverse City setting places the asset among established national and local businesses, with direct corridor access and prominent commercial exposure. Rent roll and additional financial information are available to qualified buyers upon request.
The property fronts US-31 in Garfield Township, adjacent to Red Lobster and opposite Chick-fil-A. Its Traverse City setting places the asset among established national and local businesses, with direct corridor access and prominent commercial exposure. Rent roll and additional financial information are available to qualified buyers upon request.
Key Highlights
- 13,550‑square‑foot commercial property on 1.28 acres
- Fully occupied by four tenants
- True triple‑net leases with annual rent increases
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
$167,543
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
7.01%
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%
$3,350,860
$3.4M
Cap Rate 7%
$2,393,471
$2.4M
Cap Rate 9%
$1,861,589
$1.9M
Market Conditions
NOI Build-Up for 13,550 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
$260.2K $19.20/SF
− Vacancy
−$20.8K −$1.54/SF
EGI
$239.3K $17.66/SF
− OpEx
−$71.8K −$5.30/SF
NOI
$167.5K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$3,350,860
Cap Rate 7%
$2,393,471
Cap Rate 9%
$1,861,589
Alternative Uses
Best Use
Retail
$2.39M
$2.09M – $2.79M
NOI $167,543 @ 7.0% cap · market cap 7.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.94M
$2.58M – $3.43M
NOI $206,047 @ 7.0% cap · market cap 8.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
434
Businesses Nearby
518k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 26%
Dining 21%
Superstores 20%
Shops & Services 14%
Target
Superstores
104,507 visits/mo
0.5 miles
T.J. Maxx
Apparel
39,140 visits/mo
0.5 miles
Chick-fil-A
Dining
38,043 visits/mo
0.1 miles
AMC CLASSIC Cherry Blossom 14
Leisure
36,523 visits/mo
0.4 miles
Dunham's Sports
Apparel
35,929 visits/mo
0.4 miles
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
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?
NNN property - Fully occupied commercial property with four tenants and true triple-net leases along US-31.
Where is this nnn property located?
The property is located at 2751 N US-31 S Traverse City, MI.
What is the asking price?
The asking price for this property is $2,390,000.
What are key features of this property?
This property features: 13,550‑square‑foot commercial property on 1.28 acres; Fully occupied by four tenants; True triple‑net leases with annual rent increases
