Flex Building with Bay
For Sale
$749,900
2970 Cherryhill Drive, Fort Gratiot, MI 48059
Adaptable commercial building with offices, reception space, bathrooms, and separate HVAC systems for flexible occupancy.
Property Size5,600 SF
Price / SF$234.34
Days on Market157
Property Features for 2970 Cherryhill Drive
General Information
Standard status
Active
Size
5,600 SF
Property subtype
Commercial
Zoning
Commercial, Multiple
Additional Details
Drive-In Doors
3
Taxes and HOA fees
Annual Taxes
$8,351
Amenities
dedicated office area
reception space
two bathrooms
three 13-foot bay doors
separate HVAC systems
Building Details
Building Size
5,600 SF
Year Built
1989
Buildings
2
Stories
1
Construction
block
Listing Agency:
Epique Realty
(810) 305-3456
Listed By:
Cory Shivers
(810) 305-3456
Source:
Phgrealty
Added: Mar 17
Changed: Aug 20
Last Checked: Aug 20 at 5:53AM
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 Epique Realty
Investment Insights
Based on property information with market context.
This 3,200-square-foot block flex building combines open commercial space with a dedicated office, reception area, and two bathrooms. Three 13-foot bay doors support vehicle access, storage, service, or light industrial operations. Separate HVAC systems serve the building’s two sides, and the layout was previously divided into two units for potential multi-tenant or owner-user configuration.
The property also includes a 2,400-square-foot pole barn that operates as an auto shop and was built in 2003. The main building was constructed in 1989 and most recently operated as a gym. Equipment, tools, inventory, and car hoists are excluded from the offering but are negotiable.
The property also includes a 2,400-square-foot pole barn that operates as an auto shop and was built in 2003. The main building was constructed in 1989 and most recently operated as a gym. Equipment, tools, inventory, and car hoists are excluded from the offering but are negotiable.
Key Highlights
- 3,200 square foot block building with open commercial space
- Three 13‑foot bay doors
- Office, reception area, and two bathrooms
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
$41,366
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
5.52%
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%
$827,320
$827.3K
Cap Rate 7%
$590,943
$590.9K
Cap Rate 9%
$459,622
$459.6K
Market Conditions
NOI Build-Up for 3,200 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
$60.7K $18.96/SF
− Vacancy
−$1.6K −$0.49/SF
EGI
$59.1K $18.47/SF
− OpEx
−$17.7K −$5.54/SF
NOI
$41.4K $12.93/SF
Area
St. Clair County, MI
Vacancy
2.60%
Lease Rate
$18.96 /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%
$827,320
Cap Rate 7%
$590,943
Cap Rate 9%
$459,622
Alternative Uses
Best Use
Retail
$590.9K
$517.1K – $689.4K
NOI $41,366 @ 7.0% cap · market cap 5.52%
Second Best
Flex RnD
$553.8K
$484.6K – $646.1K
NOI $38,765 @ 7.0% cap · market cap 5.17%
Theoretical Best
Multifamily LT 5
$2.41M
$2.10M – $2.81M
NOI $168,396 @ 7.0% cap · market cap 22.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Drive-in doors
Location Intelligence
Trade Area within ½ mile
179
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48059, MI
15,319
Population
7,324
Households
2.1
Avg Household Size
47
Median Age
30%
College-Educated
94%
High-School Grad
31.7 sq mi
ZIP Area
483
Density / Sq Mi
$78,841
Median Household Income
$44,716
Median Earnings
$956
Median Rent
$199,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Adaptable commercial building with offices, reception space, bathrooms, and separate HVAC systems for flexible occupancy.
Where is this flex space located?
The property is located at 2970 Cherryhill Drive Fort Gratiot, MI.
What is the asking price?
The asking price for this property is $749,900.
What are key features of this property?
This property features: 3,200 square foot block building with open commercial space; Three 13‑foot bay doors; Office, reception area, and two bathrooms
