Retail Center With Loading
For Sale
$7,000,000
325 Railroad Street, Hudson, MI 49247
Commercial Sale, Hudson, MI
Property Size56,000 SF
Lot Size5.05 Acres
Price / SF$125
Days on Market348
Property Features for 325 Railroad Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Bathrooms
6
Full bathrooms
6
Rooms
Bathroom 2, Bathroom 3, Bathroom 6, Bathroom 5, Bathroom 1, Bathroom 4
Elementary school district
Hudson
Middle school district
Hudson
High school district
Hudson
Subdivision
Lenawee County - Y
Standard status
Active
APN
XH0-118-3670-00, plus 8 more
Size
56,000 SF
Lot size
5.05 Acres
Taxes and HOA fees
Tax Year
25
Tax Description
Please see agent remarks, this includes 9 tax ids.
Tax Annual Amount
53507
Legal Description
Please see agent remarks, this includes 9 tax ids.
Utilities
Utilities
Electricity Available
Heating system
Forced Air
Amenities
loading dock
Building Details
Year built
1970
Floors in Building
1
Number of units
8
Roof type
Rubber
Listing Agency:
ERA Reardon Realty, L.L.C.
(517) 782-2996
Listed By:
Brittany Ostrowski · License #6501397335
(517) 414-4461
Added: Oct 13, 2025
Changed: Sep 16
Last Checked: Sep 25 at 10:06AM
MLS# 25052623
Copyright © 2026 Michigan Regional Information Center, LLC. 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 5.05-acre retail center at 325 Railroad Street includes a grocery store anchor with Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, and a pharmacy operating under the same roof. Additional occupants include County National Bank and Athletico Physical Therapy. A 2,700 sq. ft. unit is available for lease, and the property includes a loading dock, more than 200 parking spaces, forced-air heating, and a rubber roof.
Built in 1970, the building received a major remodel in 2006 and a new roof in 2016. Its position at a highly visible intersection provides road frontage and direct customer access in Hudson, Michigan.
Built in 1970, the building received a major remodel in 2006 and a new roof in 2016. Its position at a highly visible intersection provides road frontage and direct customer access in Hudson, Michigan.
Key Highlights
- 5.05‑acre retail center at 325 Railroad Street, Hudson, MI 49247
- Grocery anchor includes Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, and a pharmacy
- Additional tenants include County National Bank and Athletico Physical Therapy
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
$622,853
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
8.90%
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%
$12,457,060
$12.5M
Cap Rate 7%
$8,897,900
$8.9M
Cap Rate 9%
$6,920,589
$6.9M
Market Conditions
NOI Build-Up for 56,000 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
$866.9K $15.48/SF
− Vacancy
−$36.4K −$0.65/SF
EGI
$830.5K $14.83/SF
− OpEx
−$207.6K −$3.71/SF
NOI
$622.9K $11.12/SF
Area
Lenawee County, MI
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
25.00%
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%
$12,457,060
Cap Rate 7%
$8,897,900
Cap Rate 9%
$6,920,589
Alternative Uses
Best Use
Specialty Retail
$8.90M
$7.79M – $10.38M
NOI $622,853 @ 7.0% cap · market cap 8.90%
Second Best
Retail
$8.30M
$7.27M – $9.69M
NOI $581,330 @ 7.0% cap · market cap 8.30%
Theoretical Best
Multifamily LT 5
$694.78M
$607.94M – $810.58M
NOI $48,634,919 @ 7.0% cap · market cap 694.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Shopping center - Established retail center anchored by a grocery store and supported by multiple complementary businesses.
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: 5.05‑acre retail center at 325 Railroad Street, Hudson, MI 49247; Grocery anchor includes Biggby Coffee, Hungry Howie's Pizza, Ace Hardware, and a pharmacy; Additional tenants include County National Bank and Athletico Physical Therapy
