7-Unit Apartment
New
For Sale
$269,000
2870 N US 31 Highway, Levering, MI 49755
Commercial/Industrial, Levering, MI
Property Size2,800 SF
Lot Size1.60 Acres
Price / SF$96.07
Days on Market6
Property Features for 2870 N US 31 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-1 & FF-2
Elementary school district
Pellston
Middle school district
Pellston
High school district
Pellston
Directions
US 31 N of Pellston Airport, East side of highway
Subdivision
McKinley
Standard status
Active
APN
10-10-22-100-041
Size
2,800 SF
Lot size
1.60 Acres
Taxes and HOA fees
Tax Description
PT OF NE 1/4 OF NW 1/4 & PT OF NW 1/4 OF NE 1/4 OF SECTION 22, COM AT N 1/4 COR OF SD SEC, TH ALG N LN OF S...
Legal Description
PT OF NE 1/4 OF NW 1/4 & PT OF NW 1/4 OF NE 1/4 OF SECTION 22, COM AT N 1/4 COR OF SD SEC, TH ALG N LN OF S...
Utilities
Heating system
Natural Gas, Electric (Heating)
Water source
Well
Amenities
on-site coin laundry
Building Details
Year built
1950
Building materials
Wood Frame
Roof type
Shingle
Listing Agency:
@properties Christie's International Real Estate - Petoskey · RE/MAX International
(231) 881-9400
Listed By:
Mandi Maghakian · License #6501417157
(231) 675-7494
Added: Sep 21
Changed: Sep 22
Last Checked: Sep 26 at 10:06AM
MLS# 480855
Copyright © 2026 Northern Michigan 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 7-unit apartment property contains efficiency-style units operated as long-term rentals and is currently fully rented. The approximately 2,800-square-foot building was constructed in 1950 with wood-frame construction, shingle roofing, electric and natural gas heating, and a well water source. On-site coin laundry serves the property’s residents.
The property occupies approximately 1.6 acres along US-31 in Levering, providing highway access to Pellston, Petoskey, Mackinaw City, and surrounding Northern Michigan communities. Zoning is identified as B-1 & FF-2, adding a commercial zoning component to the property’s established apartment use. The offering includes an operating rental property with seven efficiency units and a documented long-term rental history.
The property occupies approximately 1.6 acres along US-31 in Levering, providing highway access to Pellston, Petoskey, Mackinaw City, and surrounding Northern Michigan communities. Zoning is identified as B-1 & FF-2, adding a commercial zoning component to the property’s established apartment use. The offering includes an operating rental property with seven efficiency units and a documented long-term rental history.
Key Highlights
- 7‑unit apartment property with efficiency‑style units
- Currently fully rented and operating as long‑term rentals
- Approximately 2,800 square feet on approximately 1.6 acres
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
$22,155
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
8.24%
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%
$443,100
$443.1K
Cap Rate 7%
$316,500
$316.5K
Cap Rate 9%
$246,167
$246.2K
Market Conditions
NOI Build-Up for 2,800 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
$42.7K $15.24/SF
− Vacancy
−$2.4K −$0.85/SF
EGI
$40.3K $14.39/SF
− OpEx
−$18.1K −$6.47/SF
NOI
$22.2K $7.91/SF
Area
Emmet County, MI
Vacancy
5.60%
Lease Rate
$15.24 /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%
$443,100
Cap Rate 7%
$316,500
Cap Rate 9%
$246,167
Alternative Uses
Best Use
Apartment 5plus
$316.5K
$276.9K – $369.3K
NOI $22,155 @ 7.0% cap · market cap 8.24%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$633.7K
$554.5K – $739.3K
NOI $44,357 @ 7.0% cap · market cap 16.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
7
Residential units
100%
Occupancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Explore this area
Business Placement
Demographics for 49755, MI
1,847
Population
1,303
Households
1.4
Avg Household Size
51
Median Age
22%
College-Educated
93%
High-School Grad
102.4 sq mi
ZIP Area
18
Density / Sq Mi
$61,121
Median Household Income
$34,676
Median Earnings
$894
Median Rent
$171,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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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 - Fully rented efficiency apartments with on-site coin laundry and commercial zoning.
Where is this apartment building located?
The property is located at 2870 N US 31 Highway Levering, MI.
What is the asking price?
The asking price for this property is $269,000.
What are key features of this property?
This property features: 7‑unit apartment property with efficiency‑style units; Currently fully rented and operating as long‑term rentals; Approximately 2,800 square feet on approximately 1.6 acres
