Mixed-Use Property With Two
For Sale
$1,600,000
Pending
404 W Liberty Street, Ann Arbor, MI 48103
Office suites, garage space, and an upstairs apartment create a flexible multi-use configuration.
Property Size5,318 SF
Days on Market43
Property Features for 404 W Liberty Street
General Information
Standard status
Pending
Size
5,318 SF
Property subtype
Commercial
Zoning
D2
Additional Details
Office Build-Out
2,650 SF
Taxes and HOA fees
Annual Taxes
$16,461
Amenities
kitchen
lounge
bathrooms
basement storage
Building Details
Building Size
5,318 SF
Year Built
1936
Buildings
2
Stories
5318
Units
2
Listing Agency:
J Keller Properties, LLC
(734) 323-1072
Listed By:
Jonathon Keller · License #6502370935
Source:
Erareardonrealty
Added: Jul 21
Changed: Aug 28
Last Checked: Aug 28 at 12:38PM
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.
The property includes two buildings with distinct commercial and residential components. At 404 W Liberty, the 2,650 ft office building contains eight private offices, a kitchen, lounge, two bathrooms, and a full basement providing storage space. The second building at 406 W Liberty includes a 1,334 ft first-floor garage area and a 1,334 ft upstairs apartment with two bedrooms, one bathroom, generous living areas, skylights, and a balcony.
Ample parking serves the site, which is accessed by a shared driveway. The parcel is zoned D2, and the buildings are identified as non-contributing to the historic west side. The property information also identifies potential for vertical, horizontal, or new construction development.
Ample parking serves the site, which is accessed by a shared driveway. The parcel is zoned D2, and the buildings are identified as non-contributing to the historic west side. The property information also identifies potential for vertical, horizontal, or new construction development.
Key Highlights
- Two‑building mixed‑use property at 404 W Liberty Street and 406 W Liberty Street
- 2,650 ft office building with 8 private offices, kitchen, lounge, 2 bathrooms, and full basement
- 1,334 ft first‑floor garage space suitable for shop, gym, or workspace
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
$62,380
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
3.90%
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%
$1,247,600
$1.2M
Cap Rate 7%
$891,143
$891.1K
Cap Rate 9%
$693,111
$693.1K
Market Conditions
NOI Build-Up for 5,318 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
$108.5K $20.40/SF
− Vacancy
−$8.7K −$1.63/SF
EGI
$99.8K $18.77/SF
− OpEx
−$37.4K −$7.04/SF
NOI
$62.4K $11.73/SF
Area
Ann Arbor, MI
Vacancy
8.00%
Lease Rate
$20.40 /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%
$1,247,600
Cap Rate 7%
$891,143
Cap Rate 9%
$693,111
Alternative Uses
Best Use
Mixed Use
$891.1K
$779.8K – $1.04M
NOI $62,380 @ 7.0% cap · market cap 3.90%
Second Best
Office B
$853.5K
$746.8K – $995.8K
NOI $59,746 @ 7.0% cap · market cap 3.73%
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,215 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,175
Businesses Nearby
Explore this area
Business Placement
Demographics for 48103, MI
55,605
Population
25,511
Households
2.2
Avg Household Size
40
Median Age
75%
College-Educated
97%
High-School Grad
66.5 sq mi
ZIP Area
836
Density / Sq Mi
$115,513
Median Household Income
$65,698
Median Earnings
$1,760
Median Rent
$455,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office suites, garage space, and an upstairs apartment create a flexible multi-use configuration.
Where is this mixed-use property located?
The property is located at 404 W Liberty Street Ann Arbor, MI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Two‑building mixed‑use property at 404 W Liberty Street and 406 W Liberty Street; 2,650 ft office building with 8 private offices, kitchen, lounge, 2 bathrooms, and full basement; 1,334 ft first‑floor garage space suitable for shop, gym, or workspace
