Residential Income Property Near
For Sale
Contact for pricing
408 Ann Street, East Lansing, MI 48823
A residential income option positioned about three blocks from MSU, supporting easy walkability for graduate students.
Property Size4,808 SF
Price / SF$270.38
Days on Market74
Property Features for 408 Ann Street
General Information
Standard status
Active
Size
4,808 SF
Class
C
Property subtype
Multifamily
Zoning
RM-32
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$95,065
Building Details
Year Built
1940
Buildings
1
Units
11
Tenancy
Multi
Listed By:
Kristen Potestivo · License #6505408421
Source:
Crexi
Added: May 28
Changed: Aug 8
Last Checked: Aug 8 at 11:55AM
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 Kristen Potestivo
Investment Insights
Based on property information with market context.
This residential income property is offered for sale and located at 408 Ann Street in East Lansing, Michigan. The asset is positioned to serve university-area housing needs, with the public remarks highlighting its close-in campus proximity.
According to the provided information, the property sits approximately three blocks from MSU and is described as offering walkability for graduate students. This proximity can be a meaningful consideration for tenants who prefer to limit commuting time and for owners targeting occupancy demand tied to the academic calendar.
For buyers, a campus-adjacent residential income property like this can be a practical fit for those seeking an income-producing asset aligned with university housing patterns. The short commute and walk-friendly access referenced in the remarks may support tenant appeal among graduate students. Prospective investors and owner-operators should verify the specific unit mix, current condition, and any lease terms or property details during due diligence to confirm how the building’s layout aligns with their goals.
According to the provided information, the property sits approximately three blocks from MSU and is described as offering walkability for graduate students. This proximity can be a meaningful consideration for tenants who prefer to limit commuting time and for owners targeting occupancy demand tied to the academic calendar.
For buyers, a campus-adjacent residential income property like this can be a practical fit for those seeking an income-producing asset aligned with university housing patterns. The short commute and walk-friendly access referenced in the remarks may support tenant appeal among graduate students. Prospective investors and owner-operators should verify the specific unit mix, current condition, and any lease terms or property details during due diligence to confirm how the building’s layout aligns with their goals.
Key Highlights
- Residential income property built in 1940
- Located about three blocks from MSU, offering walkability for graduate students
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
$39,165
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
3.01%
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%
$783,300
$783.3K
Cap Rate 7%
$559,500
$559.5K
Cap Rate 9%
$435,167
$435.2K
Market Conditions
NOI Build-Up for 4,808 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
$76.2K $15.84/SF
− Vacancy
−$5.0K −$1.03/SF
EGI
$71.2K $14.81/SF
− OpEx
−$32.0K −$6.66/SF
NOI
$39.2K $8.15/SF
Area
Ingham County, MI
Vacancy
6.50%
Lease Rate
$15.84 /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%
$783,300
Cap Rate 7%
$559,500
Cap Rate 9%
$435,167
Alternative Uses
Best Use
Apartment 5plus
$559.5K
$489.6K – $652.8K
NOI $39,165 @ 7.0% cap · market cap 3.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$772.5K
$675.9K – $901.2K
NOI $54,073 @ 7.0% cap · market cap 4.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,272
Businesses Nearby
Explore this area
Business Placement
Demographics for 48823, MI
51,793
Population
23,757
Households
2.2
Avg Household Size
28
Median Age
64%
College-Educated
98%
High-School Grad
23.6 sq mi
ZIP Area
2,195
Density / Sq Mi
$50,837
Median Household Income
$19,837
Median Earnings
$1,127
Median Rent
$261,100
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?
Multifamily property - A residential income option positioned about three blocks from MSU, supporting easy walkability for graduate students.
Where is this multifamily property located?
The property is located at 408 Ann Street East Lansing, MI.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Residential income property built in 1940; Located about three blocks from MSU, offering walkability for graduate students
