Stevenson Mixed-Use
For Sale
$700,000
405 W Main Street, Ionia, MI 48846
Leased apartments and street-level retail spaces anchor this downtown property, with a new roof and additional upper-floor potential.
Property Size11,386 SF
Days on Market35
Property Features for 405 W Main Street
General Information
Standard status
Active
Size
11,386 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
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) 915-2890
Listed By:
Cathy A Hoppough · License #6502365936
Source:
Erareardonrealty
Added: Jul 25
Changed: Aug 27
Last Checked: Aug 25 at 9:15AM
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 mixed-use property at 405 W Main St in downtown Ionia. Constructed in 1890, the 11,386-square-foot building combines residential and commercial space across multiple levels. Five apartments occupy the second floor, and all are currently leased. Two retail spaces are positioned at street level along Main Street, providing a distinct commercial component within the building.
A new roof is among the recent property improvements. The third floor offers the potential for four loft-style apartments, creating an additional residential development opportunity within the existing structure. The property sits on the red brick Main Street corridor in historic downtown Ionia, placing its retail frontage and upper-floor residences within the city’s established downtown setting.
A new roof is among the recent property improvements. The third floor offers the potential for four loft-style apartments, creating an additional residential development opportunity within the existing structure. The property sits on the red brick Main Street corridor in historic downtown Ionia, placing its retail frontage and upper-floor residences within the city’s established downtown setting.
Key Highlights
- 11,386‑square‑foot mixed‑use building at 405 W Main St, Ionia, MI 48846
- Built in 1890 with residential and retail space across multiple levels
- Five second‑floor apartments, all currently leased
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
Location Intelligence
Trade Area within ½ mile
474
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 - Leased apartments and street-level retail spaces anchor this downtown property, with a new roof and additional upper-floor potential.
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: 11,386‑square‑foot mixed‑use building at 405 W Main St, Ionia, MI 48846; Built in 1890 with residential and retail space across multiple levels; Five second‑floor apartments, all currently leased
