Leased Mixed-Use Building with
For Sale
$700,000
405 W Main Street, Ionia, MI 48846
Fully leased mixed-use building with street-level retail and five leased second-floor apartments.
Property Size11,386 SF
Price / SF$61.48
Days on Market103
Property Features for 405 W Main Street
General Information
Standard status
Active
Size
11,386 SF
Property subtype
Business Opportunities
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
5
Amenities
3
Composition
68132
Building Details
Year Built
1890
Stories
3
Tenancy
Multi
Listing Agency:
KW Rivertown Hoppough
(616) 915-2890
Listed By:
Cathy Hoppough · License #6502365936
(616) 915-2890
Source:
Xome
Added: Apr 29
Changed: Aug 8
Last Checked: Aug 9 at 5:11AM
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 KW Rivertown Hoppough
Investment Insights
Based on property information with market context.
The Stevenson Building is a fully leased mixed-use property featuring street-level retail space and leased residential units above. The second floor has five apartments that are currently leased, supporting ongoing rental income.
Located on W Main Street in the heart of historic downtown Ionia, the building includes two retail spaces at street level. Recent improvements include a new roof.
The third floor provides additional flexibility, with the possibility to create four loft-style apartments. The building is offered for sale as an income-producing mixed-use asset.
Located on W Main Street in the heart of historic downtown Ionia, the building includes two retail spaces at street level. Recent improvements include a new roof.
The third floor provides additional flexibility, with the possibility to create four loft-style apartments. The building is offered for sale as an income-producing mixed-use asset.
Key Highlights
- Fully leased mixed‑use building with street‑level retail plus five leased apartments on the second floor
- Year built: 1890
- Composition roof with recent improvements reported as a new roof
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
$53,824
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
7.69%
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%
$1,076,480
$1.1M
Cap Rate 7%
$768,914
$768.9K
Cap Rate 9%
$598,044
$598.0K
Market Conditions
NOI Build-Up for 11,386 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
$102.5K $9.00/SF
− Vacancy
−$4.6K −$0.41/SF
EGI
$97.9K $8.59/SF
− OpEx
−$44.0K −$3.87/SF
NOI
$53.8K $4.73/SF
Area
Ionia County, MI
Vacancy
4.50%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
45.00%
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%
$1,076,480
Cap Rate 7%
$768,914
Cap Rate 9%
$598,044
Alternative Uses
Best Use
Mixed Use
$1.65M
$1.44M – $1.92M
NOI $115,283 @ 7.0% cap · market cap 16.47%
Second Best
Retail
$1.59M
$1.39M – $1.85M
NOI $111,184 @ 7.0% cap · market cap 15.88%
Theoretical Best
Specialty Retail
$2.17M
$1.90M – $2.53M
NOI $151,871 @ 7.0% cap · market cap 21.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Explore this area
Business Placement
Demographics for 48846, MI
22,470
Population
7,597
Households
3
Avg Household Size
38
Median Age
12%
College-Educated
88%
High-School Grad
110.6 sq mi
ZIP Area
203
Density / Sq Mi
$66,717
Median Household Income
$37,858
Median Earnings
$804
Median Rent
$172,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Fully leased mixed-use building with street-level retail and five leased second-floor apartments.
Where is this mixed-use property located?
The property is located at 405 W Main Street Ionia, MI.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Fully leased mixed‑use building with street‑level retail plus five leased apartments on the second floor; Year built: 1890; Composition roof with recent improvements reported as a new roof
