Retail Plaza with Grocery
For Sale
$7,000,000
325 Railroad Street, Hudson, MI 49247
Freestanding retail plaza anchored by a grocery store with attached pharmacy, plus a 2,700 SF available unit.
Property Size59,000 SF
Price / SF$118.64
Days on Market50
Property Features for 325 Railroad Street
General Information
Standard status
Active
Size
59,000 SF
Total Parking Spaces
200
Zoning
Commercial
Additional Details
Business Included
Yes
Dock-High Doors
1
Taxes and HOA fees
Annual Taxes
$53,507
Building Details
Year Built
1970
Year Renovated
2006
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
(734) 369-8239
Listed By:
J. Keller Properties, LLC
(734) 369-8239
Source:
Jkellerproperties.idxbroker
Added: Jul 3
Changed: Aug 17
Last Checked: Aug 20 at 4:06AM
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 J. Keller Properties, LLC
Investment Insights
Based on property information with market context.
Bob's Market House is a 59,000-square-foot retail plaza anchored by an on-site grocery store. The grocery facility includes several complementary businesses under one roof, including Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy. The property has been thoughtfully updated, with a major remodel completed in 2006 and a new roof installed in 2016. A convenient loading dock and more than 200 on-site parking spaces support everyday customer access.
The center offers strong visibility with road frontage at one of the area’s most visible intersections, supporting convenient access and exposure. Tenanting includes County National Bank and Athletico Physical Therapy among the surrounding occupants.
A 2,700-square-foot unit is currently available for lease, providing space for a compatible retail or service tenant within a grocery-anchored environment. The tenant mix and maintenance history make the plaza a practical fit for operators seeking a retail setting designed for consistent day-to-day traffic and straightforward site logistics.
The center offers strong visibility with road frontage at one of the area’s most visible intersections, supporting convenient access and exposure. Tenanting includes County National Bank and Athletico Physical Therapy among the surrounding occupants.
A 2,700-square-foot unit is currently available for lease, providing space for a compatible retail or service tenant within a grocery-anchored environment. The tenant mix and maintenance history make the plaza a practical fit for operators seeking a retail setting designed for consistent day-to-day traffic and straightforward site logistics.
Key Highlights
- 59,000 SF retail plaza anchored by a grocery store with an attached pharmacy
- Grocery store includes Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy
- Major remodel completed in 2006; new roof installed in 2016
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
$612,472
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
8.75%
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%
$12,249,440
$12.2M
Cap Rate 7%
$8,749,600
$8.7M
Cap Rate 9%
$6,805,244
$6.8M
Market Conditions
NOI Build-Up for 59,000 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
$913.3K $15.48/SF
− Vacancy
−$38.4K −$0.65/SF
EGI
$875.0K $14.83/SF
− OpEx
−$262.5K −$4.45/SF
NOI
$612.5K $10.38/SF
Area
Lenawee County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$12,249,440
Cap Rate 7%
$8,749,600
Cap Rate 9%
$6,805,244
Alternative Uses
Best Use
Specialty Retail
$9.37M
$8.20M – $10.94M
NOI $656,220 @ 7.0% cap · market cap 9.37%
Second Best
Retail
$8.75M
$7.66M – $10.21M
NOI $612,472 @ 7.0% cap · market cap 8.75%
Theoretical Best
Multifamily LT 5
$732.01M
$640.50M – $854.01M
NOI $51,240,362 @ 7.0% cap · market cap 732.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Dock-high doors
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
240
Businesses Nearby
41k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 45%
Shops & Services 39%
Home Improvements & Furnishings 16%
McDonald's
Dining
18,308 visits/mo
0.3 miles
Dollar General
Shops & Services
6,887 visits/mo
0.2 miles
Hudson Ace Hardware
Home Improvements & Furnishings
6,605 visits/mo
0.1 miles
Family Dollar
Shops & Services
3,095 visits/mo
0.4 miles
Marathon Petroleum
Shops & Services
2,578 visits/mo
0.2 miles
Demographics for 49247, MI
5,720
Population
2,457
Households
2.3
Avg Household Size
42
Median Age
17%
College-Educated
89%
High-School Grad
84.0 sq mi
ZIP Area
68
Density / Sq Mi
$60,404
Median Household Income
$41,373
Median Earnings
$906
Median Rent
$138,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Shopping center - Freestanding retail plaza anchored by a grocery store with attached pharmacy, plus a 2,700 SF available unit.
Where is this shopping center located?
The property is located at 325 Railroad Street Hudson, MI.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: 59,000 SF retail plaza anchored by a grocery store with an attached pharmacy; Grocery store includes Biggby Coffee, Hungry Howie’s Pizza, Ace Hardware, and a fully stocked pharmacy; Major remodel completed in 2006; new roof installed in 2016
