Mixed-Use
For Sale
Contact for pricing
3890 CHARLEVOIX RD, Petoskey, MI 49770
Commercial property constructed in 2000 with substantial building area for a mixed-use operation.
Property Size40,000 SF
Price / SF$180
Days on Market9
Property Features for 3890 CHARLEVOIX RD
General Information
Standard status
Active
Size
40,000 SF
Property subtype
Retail, Office, Mixed Use
Occupancy
95%
Lease Type
Modified Gross
Investment Type
Stabilized
Building Details
Year Built
2000
Units
20
Tenancy
Multi
Listing Agency:
Atesian Properties
Listed By:
Ara Atesian · License #6501311915
Source:
Crexi
Added: Aug 26
Changed: Sep 3
Last Checked: Sep 2 at 11:26PM
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 Atesian Properties
Investment Insights
Based on property information with market context.
This mixed-use property at 3890 Charlevoix Road in Petoskey, Michigan, includes approximately 40,000 square feet of building area. Constructed in 2000, the asset is identified for general commercial use and offers a substantial physical footprint for its intended mixed-use classification.
Key Highlights
- Approximately 40,000 square feet of building area
- Constructed in 2000
- Located at 3890 Charlevoix Road, Petoskey, MI 49770‑8422
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
$465,930
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
6.47%
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%
$9,318,600
$9.3M
Cap Rate 7%
$6,656,143
$6.7M
Cap Rate 9%
$5,177,000
$5.2M
Market Conditions
NOI Build-Up for 40,000 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
$801.6K $20.04/SF
− Vacancy
−$56.1K −$1.40/SF
EGI
$745.5K $18.64/SF
− OpEx
−$279.6K −$6.99/SF
NOI
$465.9K $11.65/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /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%
$9,318,600
Cap Rate 7%
$6,656,143
Cap Rate 9%
$5,177,000
Alternative Uses
Best Use
Mixed Use
$6.66M
$5.82M – $7.77M
NOI $465,930 @ 7.0% cap · market cap 6.47%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$9.05M
$7.92M – $10.56M
NOI $633,665 @ 7.0% cap · market cap 8.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
218
Businesses Nearby
Explore this area
Business Placement
Demographics for 49770, MI
17,643
Population
10,244
Households
1.7
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
109.4 sq mi
ZIP Area
161
Density / Sq Mi
$80,431
Median Household Income
$42,154
Median Earnings
$1,077
Median Rent
$309,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial property constructed in 2000 with substantial building area for a mixed-use operation.
Where is this mixed-use property located?
The property is located at 3890 CHARLEVOIX RD Petoskey, MI.
What is the asking price?
The asking price for this property is $7,200,000.
What are key features of this property?
This property features: Approximately 40,000 square feet of building area; Constructed in 2000; Located at 3890 Charlevoix Road, Petoskey, MI 49770‑8422
