Fully Leased Mixed-Use
For Sale
$1,850,000
3390 N State Rd, Davison, MI 48423
12,000 SF mixed-use building on 10 acres.
Property Size12,000 SF
Lot Size10.11 Acres
Price / SF$154.17
Days on Market153
Property Features for 3390 N State Rd
General Information
Standard status
Active
Size
12,000 SF
Lot size
10.11 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$14,380
Building Details
Building Size
12,000 SF
Year Built
2003
Listing Agency:
The Brokerage Real Estate Enthusiasts
(248) 297-5551
Listed By:
William McDunnah II · License #6501414688
(248) 297-5551
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 6:22AM
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 The Brokerage Real Estate Enthusiasts
Investment Insights
Based on property information with market context.
This 12,000 square foot mixed-use commercial building is fully leased and located in Davison. Situated on over 10 acres with State Road frontage, the property benefits from excellent visibility. It is zoned Community Business and features four fully occupied units accommodating office, medical, and service-based tenants. The building is in pristine condition and has been professionally maintained annually, inside and out. A new roof is scheduled for installation in 2025. Located minutes from I-69 and downtown Davison, the property combines accessibility with long-term growth potential. The building is set back from the road and offers ample paved parking, with acreage available for future expansion or development. Approved plans for a buildout are available. The layout supports flexible commercial use, providing tenant stability and opportunities for increased income. The location benefits from high traffic counts. The current zoning supports a range of community-serving uses. The property is located in Genesee County.
Key Highlights
- Fully leased 12,000 sq ft mixed‑use commercial building providing immediate income.
- Located on over 10 acres with State Road frontage and excellent visibility.
- Community Business zoning allows for a range of community‑serving uses.
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
$136,080
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
7.36%
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%
$2,721,600
$2.7M
Cap Rate 7%
$1,944,000
$1.9M
Cap Rate 9%
$1,512,000
$1.5M
Market Conditions
NOI Build-Up for 12,000 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
$259.2K $21.60/SF
− Vacancy
−$32.4K −$2.70/SF
EGI
$226.8K $18.90/SF
− OpEx
−$90.7K −$7.56/SF
NOI
$136.1K $11.34/SF
Area
Genesee County, MI
Vacancy
12.50%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
40.00%
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%
$2,721,600
Cap Rate 7%
$1,944,000
Cap Rate 9%
$1,512,000
Alternative Uses
Best Use
Healthcare Medical
$1.94M
$1.70M – $2.27M
NOI $136,080 @ 7.0% cap · market cap 7.36%
Second Best
Office B
$1.89M
$1.65M – $2.20M
NOI $132,196 @ 7.0% cap · market cap 7.15%
Theoretical Best
Office A
$2.53M
$2.21M – $2.95M
NOI $176,758 @ 7.0% cap · market cap 9.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
517
Businesses Nearby
Explore this area
Business Placement
Demographics for 48423, MI
33,801
Population
15,248
Households
2.2
Avg Household Size
41
Median Age
25%
College-Educated
93%
High-School Grad
64.5 sq mi
ZIP Area
524
Density / Sq Mi
$64,096
Median Household Income
$40,463
Median Earnings
$953
Median Rent
$209,400
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - 12,000 SF mixed-use building on 10 acres.
Where is this mixed-use property located?
The property is located at 3390 N State Rd Davison, MI.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: Fully leased 12,000 sq ft mixed‑use commercial building providing immediate income.; Located on over 10 acres with State Road frontage and excellent visibility.; Community Business zoning allows for a range of community‑serving uses.
