M-37 Round About
For Sale
Contact for pricing
3042 Luxury Barn Ln, Traverse City, MI 49685
Unique commercial buildings, ready for owner utilization.
Property Size1,200 SF
Price / SF$124.92
Days on Market155
Property Features for 3042 Luxury Barn Ln
General Information
Standard status
Active
Size
1,200 SF
Property subtype
Retail, Industrial
Listing Agency:
Key Realty Traverse City
Listed By:
Jen Kreta · License #MI
Source:
Crexi
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 11 at 6:01AM
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 Key Realty Traverse City
Investment Insights
Based on property information with market context.
M-37 Round About Barns present a unique ownership opportunity. These Borkholder Craftsman, Custom Truss Commercial Buildings measure 30 feet wide by 40 feet long, with sidewalls that are 14 feet 4 inches tall. Sidewalls are spaced 5x6 at 8 feet on center, with endwell posts approximately 8 feet on center. Trusses are 4 on center at 4/12 60 GS with ceiling load. The buildings include Typar or similar Guard Wrap House Wrap and a 4 mil clear polyethylene vapor barrier, with an additional 2-inch foam on the perimeter. They feature a Kynar 500 Paint Upgrade with Exterior Premiere Steel Siding, 29G Ultra Rib Max with Wanes Coating. The interior ceiling and building front wall are covered with white finished steel, and attic access is provided. A 12x12 high-quality, 2-inch thick R16.4 flat panel insulated door is included, along with an electric garage door opener. A commercial front access door with keypad access and Lock guard Security Protection is installed. The front of the barns feature real stone. Garage door bollards (cement filled and painted poles) are present to prevent dings and guide vehicles. The concrete slab floor includes pressure crack relief cuts and a full 4-foot owners apron. Ceiling insulation is R-50. A mini-split system provides heat and A/C. The buildings are equipped with 200-amp electrical service with an electric package and epoxy floor. Each unit has an owner-managed utility meter for electric, and is 100% owner ready for utilization. The property size is 1200 square feet.
Key Highlights
- 100% owner ready for utilization: Fully equipped and immediately usable commercial building.
- High‑quality construction featuring Borkholder Craftsman build with custom trusses, Kynar 500 painted steel siding, and real stone front.
- Climate control with mini‑split system for both heating and air conditioning.
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
$12,361
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
8.25%
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%
$247,220
$247.2K
Cap Rate 7%
$176,586
$176.6K
Cap Rate 9%
$137,344
$137.3K
Market Conditions
NOI Build-Up for 1,200 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
$20.4K $17.04/SF
− Vacancy
−$1.4K −$1.19/SF
EGI
$19.0K $15.85/SF
− OpEx
−$6.7K −$5.55/SF
NOI
$12.4K $10.30/SF
Area
Grand Traverse County, MI
Vacancy
7.00%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
35.00%
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%
$247,220
Cap Rate 7%
$176,586
Cap Rate 9%
$137,344
Alternative Uses
Best Use
Retail
$212.0K
$185.5K – $247.3K
NOI $14,838 @ 7.0% cap · market cap 9.90%
Second Best
Flex RnD
$176.6K
$154.5K – $206.0K
NOI $12,361 @ 7.0% cap · market cap 8.25%
Theoretical Best
Office A
$260.7K
$228.1K – $304.1K
NOI $18,248 @ 7.0% cap · market cap 12.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,080
Businesses Nearby
Explore this area
Business Placement
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
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?
Retail space - Unique commercial buildings, ready for owner utilization.
Where is this retail space located?
The property is located at 3042 Luxury Barn Ln Traverse City, MI.
What is the asking price?
The asking price for this property is $149,900.
What are key features of this property?
This property features: 100% owner ready for utilization: Fully equipped and immediately usable commercial building.; High‑quality construction featuring Borkholder Craftsman build with custom trusses, Kynar 500 painted steel siding, and real stone front.; Climate control with mini‑split system for both heating and air conditioning.
