Mixed-Use Parcel with Office and
For Sale
Under Contract
$1,600,000
404 W Liberty Street, Ann Arbor, MI 48103
COMMERCIAL - Ann Arbor, MI
Property Size5,318 SF
Lot Size0.18 Acres
Price / SF$300.86
Days on Market381
Property Features for 404 W Liberty Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
D2
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 1, Bathroom 2, Bathroom 3, Basement
Parking
10
Interior features
Broadband
Elementary school district
Ann Arbor
Middle school district
Ann Arbor
High school district
Ann Arbor
Subdivision
Ann Arbor/Washtenaw - A
Standard status
Active Under Contract
APN
09-09-29-211-026
Size
5,318 SF
Lot size
0.18 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
PRT OF LOTS 11, 12 & 13, BLOCK 2, ASSESSOR'S PLAT NO 3 COM SE COR LOT 11, TH NLY 110 FT FOR POB, TH CONT NLY 73.80....
Tax Annual Amount
16461
Legal Description
PRT OF LOTS 11, 12 & 13, BLOCK 2, ASSESSOR'S PLAT NO 3 COM SE COR LOT 11, TH NLY 110 FT FOR POB, TH CONT NLY 73.80....
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1936
Number of units
2
Building materials
Block, Concrete, Stucco
Roof type
Rubber, Composition
Listing Agency:
J Keller Properties, LLC
(734) 369-8239
Listed By:
Jonathon Keller · License #6502370935
(734) 323-1072
Added: Jul 28, 2025
Changed: Aug 4
Last Checked: Aug 12 at 10:06PM
MLS# 25037503
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 parcel includes two buildings with ample parking. Building 1 (404 W Liberty) is a 2,650-square-foot office building featuring eight private, right-sized offices. The space also includes a full kitchen, lounge area, two bathrooms, and a full basement with clean, dry storage.
Building 2 (406 W Liberty) includes 1,334 square feet of first-floor garage space that can serve as a shop, gym, or workspace. The second floor has a 1,334-square-foot, two-bedroom, one-bath apartment with large living areas, multiple skylights, and a balcony overlooking the town.
The property is zoned D2 and is considered a “non-contributing building to the historic west side,” with shared driveway access as reflected in the attached survey.
Building 2 (406 W Liberty) includes 1,334 square feet of first-floor garage space that can serve as a shop, gym, or workspace. The second floor has a 1,334-square-foot, two-bedroom, one-bath apartment with large living areas, multiple skylights, and a balcony overlooking the town.
The property is zoned D2 and is considered a “non-contributing building to the historic west side,” with shared driveway access as reflected in the attached survey.
Key Highlights
- Mixed‑use parcel with 2 buildings: 404 W Liberty (2,650 SF office) and 406 W Liberty (1,334 SF garage/workspace plus 1,334 SF apartment)
- 404 W Liberty office building offers 8 offices, a full kitchen, lounge, and 2 bathrooms, plus a full basement for clean, dry storage
- 406 W Liberty includes a large first‑floor 1,334 SF garage space and upstairs 2BD/1BA apartment with large living areas and multiple skylights
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
Apartment 5plus
$864.4K
$756.3K – $1.01M
NOI $60,505 @ 7.0% cap · market cap 3.78%
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
Lease Details
8
Office units
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,184
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-building mixed-use property with private-office layout, garage/workshop space, and an upstairs 2-bed apartment.
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: Mixed‑use parcel with 2 buildings: 404 W Liberty (2,650 SF office) and 406 W Liberty (1,334 SF garage/workspace plus 1,334 SF apartment); 404 W Liberty office building offers 8 offices, a full kitchen, lounge, and 2 bathrooms, plus a full basement for clean, dry storage; 406 W Liberty includes a large first‑floor 1,334 SF garage space and upstairs 2BD/1BA apartment with large living areas and multiple skylights
