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2864 Washtenaw Avenue, Ypsilanti, MI 48197
Service-oriented retail center near educational, healthcare, and established retail uses with access to US-23 and I-94.
Property Size37,216 SF
Price / SF$154.09
Days on Market7
Property Features for 2864 Washtenaw Avenue
General Information
Standard status
Active
Size
37,216 SF
Property subtype
Retail
Occupancy
96%
Lease Type
NNN
Net Operating Income
$478,841
Additional Details
Highway Access
Yes
Building Details
Year Built
1988
Stories
1
Units
18
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Detroit
Listed By:
Ashish Vakhariya · License #MI 6501322501
Source:
Crexi
Added: Aug 5
Changed: Aug 10
Last Checked: Aug 10 at 5:42AM
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 Marcus & Millichap - Detroit
Investment Insights
Based on property information with market context.
Fountain Square Shopping Center is a 37,216-square-foot, multi-tenant neighborhood retail center built in 1988. The property occupies 2864 Washtenaw Avenue in Ypsilanti, Michigan, along a major corridor connecting Ypsilanti with Ann Arbor. Its service-oriented tenant mix supports nearby residential, institutional, healthcare, and employment demand.
The center is immediately proximate to US-23 and offers convenient access to I-94. Eastern Michigan University, Washtenaw Community College, and Trinity Health Ann Arbor Hospital are among the major nearby institutions. Eastern Michigan University enrolls 12,631 students, while Washtenaw Community College enrolls 11,133 students. The hospital, located directly behind the property, has 537 licensed beds.
An established retail shopping plaza is adjacent to the center, creating a consolidated retail setting along the Washtenaw Avenue corridor. The property is positioned within the Ann Arbor-Ypsilanti area and benefits from proximity to education, healthcare, regional transportation routes, and surrounding residential density.
The center is immediately proximate to US-23 and offers convenient access to I-94. Eastern Michigan University, Washtenaw Community College, and Trinity Health Ann Arbor Hospital are among the major nearby institutions. Eastern Michigan University enrolls 12,631 students, while Washtenaw Community College enrolls 11,133 students. The hospital, located directly behind the property, has 537 licensed beds.
An established retail shopping plaza is adjacent to the center, creating a consolidated retail setting along the Washtenaw Avenue corridor. The property is positioned within the Ann Arbor-Ypsilanti area and benefits from proximity to education, healthcare, regional transportation routes, and surrounding residential density.
Key Highlights
- 37,216‑square‑foot multi‑tenant neighborhood retail center
- Built in 1988 at 2864 Washtenaw Avenue, Ypsilanti, MI 48197
- Immediate proximity to US‑23 with convenient access to I‑94
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
$506,045
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
8.82%
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%
$10,120,900
$10.1M
Cap Rate 7%
$7,229,214
$7.2M
Cap Rate 9%
$5,622,722
$5.6M
Market Conditions
NOI Build-Up for 37,216 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
$781.5K $21.00/SF
− Vacancy
−$58.6K −$1.58/SF
EGI
$722.9K $19.43/SF
− OpEx
−$216.9K −$5.83/SF
NOI
$506.0K $13.60/SF
Area
Washtenaw County, MI
Vacancy
7.50%
Lease Rate
$21.00 /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%
$10,120,900
Cap Rate 7%
$7,229,214
Cap Rate 9%
$5,622,722
Alternative Uses
Best Use
Retail
$7.23M
$6.33M – $8.43M
NOI $506,045 @ 7.0% cap · market cap 8.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.94M
$9.57M – $12.76M
NOI $765,459 @ 7.0% cap · market cap 13.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,231
Businesses Nearby
17k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 54%
Dining 27%
Home Improvements & Furnishings 11%
Electronics 8%
Family Dollar
Shops & Services
4,787 visits/mo
0.3 miles
KFC
Dining
4,562 visits/mo
0.2 miles
Sunoco
Shops & Services
2,067 visits/mo
0.2 miles
Ypsi Hardware
Home Improvements & Furnishings
1,861 visits/mo
0.1 miles
Metro by T-Mobile
Electronics
1,358 visits/mo
0.4 miles
Demographics for 48197, MI
67,895
Population
28,649
Households
2.4
Avg Household Size
33
Median Age
47%
College-Educated
94%
High-School Grad
41.2 sq mi
ZIP Area
1,648
Density / Sq Mi
$70,913
Median Household Income
$39,314
Median Earnings
$1,203
Median Rent
$274,100
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?
Shopping center - Service-oriented retail center near educational, healthcare, and established retail uses with access to US-23 and I-94.
Where is this shopping center located?
The property is located at 2864 Washtenaw Avenue Ypsilanti, MI.
What is the asking price?
The asking price for this property is $5,734,628.
What are key features of this property?
This property features: 37,216‑square‑foot multi‑tenant neighborhood retail center; Built in 1988 at 2864 Washtenaw Avenue, Ypsilanti, MI 48197; Immediate proximity to US‑23 with convenient access to I‑94
