Mixed-Use Property with
For Sale
$2,600,000
37908 W Red Arrow Highway, Paw Paw, MI 49079
Commercial Sale, Paw Paw, MI
Property Size42,300 SF
Lot Size15.00 Acres
Price / SF$61.47
Days on Market17
Property Features for 37908 W Red Arrow Highway
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
commercial
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Interior features
Broadband
Elementary school district
Paw Paw
Middle school district
Paw Paw
High school district
Paw Paw
Standard status
Active
APN
80-14-011-025-01
Size
42,300 SF
Lot size
15.00 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Added in Documents
Tax Annual Amount
22825
Legal Description
Added in Documents
Utilities
Utilities
Cable Available
Sewer type
Septic Tank
Heating system
Forced Air
Cooling system
Central Air
Water source
Well, Private
Amenities
outdoor storage units
open-air market
three water wells
Building Details
Year built
1995
Number of units
45
Building materials
Aluminum Siding, Vinyl Siding
Roof type
Composition, Metal
Listing Agency:
Golden Star Realty, Inc.
(269) 657-4830
Listed By:
Barbara R Carpenter · License #6504211556
(269) 501-1134
Added: Aug 20
Changed: Sep 4
Last Checked: Sep 5 at 12:06PM
MLS# 26047247
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 mixed-use property is offered as a package comprising two separate parcels with residential and commercial improvements. The residential component includes a custom-built log home with three bedrooms and two bathrooms. Commercial improvements include a restaurant, three separate buildings supporting flea market and retail operations, outdoor storage units, and an open-air market. A 3,600-square-foot pole barn has been converted to a residence that is rented out.
The property includes three water wells, private well service, septic infrastructure, forced-air heating, central air, and cable availability. A campground has been approved. The improvements date to 1995 and include aluminum and vinyl siding with metal and composition roofing. The real estate and buildings are being conveyed as-is, with the existing business operators planning retirement and not remaining to operate or maintain the businesses.
The property includes three water wells, private well service, septic infrastructure, forced-air heating, central air, and cable availability. A campground has been approved. The improvements date to 1995 and include aluminum and vinyl siding with metal and composition roofing. The real estate and buildings are being conveyed as-is, with the existing business operators planning retirement and not remaining to operate or maintain the businesses.
Key Highlights
- Two‑parcel mixed‑use offering combining residential and commercial improvements
- Restaurant plus three separate buildings used for flea market and retail operations
- Custom‑built log home with three bedrooms 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
$179,681
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
6.91%
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%
$3,593,620
$3.6M
Cap Rate 7%
$2,566,871
$2.6M
Cap Rate 9%
$1,996,456
$2.0M
Market Conditions
NOI Build-Up for 42,300 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
$319.8K $7.56/SF
− Vacancy
−$32.3K −$0.76/SF
EGI
$287.5K $6.80/SF
− OpEx
−$107.8K −$2.55/SF
NOI
$179.7K $4.25/SF
Area
Van Buren County, MI
Vacancy
10.10%
Lease Rate
$7.56 /SF/Yr
Expense Ratio
37.50%
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%
$3,593,620
Cap Rate 7%
$2,566,871
Cap Rate 9%
$1,996,456
Alternative Uses
Best Use
Specialty Retail
$6.99M
$6.12M – $8.15M
NOI $489,276 @ 7.0% cap · market cap 18.82%
Second Best
Retail
$6.27M
$5.49M – $7.32M
NOI $439,112 @ 7.0% cap · market cap 16.89%
Theoretical Best
Multifamily LT 5
$523.03M
$457.65M – $610.20M
NOI $36,612,259 @ 7.0% cap · market cap 1,408.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
96
Businesses Nearby
Explore this area
Business Placement
Demographics for 49079, MI
13,766
Population
6,019
Households
2.3
Avg Household Size
42
Median Age
25%
College-Educated
93%
High-School Grad
83.4 sq mi
ZIP Area
165
Density / Sq Mi
$72,119
Median Household Income
$41,376
Median Earnings
$841
Median Rent
$214,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Multi-building commercial property includes a residence, restaurant, retail uses, outdoor storage, and an open-air market.
Where is this mixed-use property located?
The property is located at 37908 W Red Arrow Highway Paw Paw, MI.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Two‑parcel mixed‑use offering combining residential and commercial improvements; Restaurant plus three separate buildings used for flea market and retail operations; Custom‑built log home with three bedrooms and two bathrooms
