Mixed-Use Building with
New
For Sale
$700,000
405 W Main Street, Ionia, MI 48846
Street-level retail complements leased apartments and a third-floor loft conversion opportunity.
Property Size11,386 SF
Days on Market3
Property Features for 405 W Main Street
General Information
Standard status
Active
Size
11,386 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
Road Access
Yes
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$10,485
Building Details
Building Size
11,386 SF
Year Built
1890
Buildings
1
Stories
2
Units
7
Tenancy
Multi
Listing Agency:
KW Rivertown Hoppough
(616) 523-4300
Listed By:
Cathy A Hoppough · License #6502365936
Source:
Irishhillsfivestarhomes
Added: Aug 12
Changed: Aug 13
Last Checked: Aug 13 at 7:29AM
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.
Built in 1890, this downtown Ionia property combines street-level commercial space with residential units above. The building includes two retail spaces on the ground floor and five second-floor apartments, all currently leased. A new roof is among the recent improvements.
The property occupies 405 W Main Street along Ionia’s downtown Main Street corridor. The third floor offers the possibility of developing four loft-style apartments, creating additional residential capacity within the existing building. Its blend of retail and residential components provides a straightforward mixed-use configuration in a central downtown setting.
The property occupies 405 W Main Street along Ionia’s downtown Main Street corridor. The third floor offers the possibility of developing four loft-style apartments, creating additional residential capacity within the existing building. Its blend of retail and residential components provides a straightforward mixed-use configuration in a central downtown setting.
Key Highlights
- Five second‑floor apartments, all currently leased
- Two street‑level retail spaces
- Third floor offers the possibility of four loft‑style apartments
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
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
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 - Street-level retail complements leased apartments and a third-floor loft conversion opportunity.
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: Five second‑floor apartments, all currently leased; Two street‑level retail spaces; Third floor offers the possibility of four loft‑style apartments
