Flex Space with Woodshop
For Sale
$298,500
4863 Us Highway 12, Three Oaks, MI 49128
Commercial building with substantial electrical capacity, flexible interior space, and a high-ceiling basement.
Property Size3,500 SF
Lot Size1.60 Acres
Price / SF$85.29
Days on Market116
Property Features for 4863 Us Highway 12
General Information
Standard status
Active
Size
3,500 SF
Lot size
1.60 Acres
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Additional Details
Power
600 amps
Building Details
Year Built
1930
Buildings
1
Building Size
3,500 SF
Construction
steel beam
Abandoned
No
Listing Agency:
Cressy & Everett R.E. of Harbor Country
(269) 612-1350
Listed By:
Maggie Olson, Gerald Olson · License #6501284410
Source:
Katie-k
Added: May 8
Changed: Aug 30
Last Checked: Aug 25 at 4:57AM
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 Cressy & Everett R.E. of Harbor Country
Investment Insights
Based on property information with market context.
This 3,500-square-foot flex property occupies a 1.6-acre parcel and was constructed in 1930 with steel beam framing. The building includes 2,100 square feet of maple flooring, original ceilings, newer windows, a roof installed in 2024, and a large basement with high ceilings. Its 600-AMP electrical service supports the property’s current use as a fully equipped woodshop, with a professional spray booth, dust collection system, and compressed air lines potentially included.
The property fronts US Highway 12 for 428 feet and is situated near the art community of Three Oaks. Its prior operation as a roadhouse restaurant and existing workshop improvements provide a distinctive commercial setting with adaptable interior space.
The property fronts US Highway 12 for 428 feet and is situated near the art community of Three Oaks. Its prior operation as a roadhouse restaurant and existing workshop improvements provide a distinctive commercial setting with adaptable interior space.
Key Highlights
- 1.6‑acre parcel with a 3,500‑square‑foot commercial building
- 428 feet of frontage along US Highway 12
- 600‑AMP electrical service and steel beam construction
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
$17,524
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
5.87%
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%
$350,480
$350.5K
Cap Rate 7%
$250,343
$250.3K
Cap Rate 9%
$194,711
$194.7K
Market Conditions
NOI Build-Up for 3,500 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
$29.4K $8.40/SF
− Vacancy
−$2.4K −$0.70/SF
EGI
$27.0K $7.70/SF
− OpEx
−$9.4K −$2.70/SF
NOI
$17.5K $5.01/SF
Area
Berrien County, MI
Vacancy
8.30%
Lease Rate
$8.40 /SF/Yr
Expense Ratio
35.00%
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%
$350,480
Cap Rate 7%
$250,343
Cap Rate 9%
$194,711
Alternative Uses
Best Use
Flex RnD
$250.3K
$219.1K – $292.1K
NOI $17,524 @ 7.0% cap · market cap 5.87%
Second Best
Industrial
$223.4K
$195.5K – $260.6K
NOI $15,637 @ 7.0% cap · market cap 5.24%
Theoretical Best
Office A
$736.5K
$644.4K – $859.2K
NOI $51,554 @ 7.0% cap · market cap 17.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49128, MI
3,448
Population
1,929
Households
1.8
Avg Household Size
52
Median Age
24%
College-Educated
94%
High-School Grad
43.7 sq mi
ZIP Area
79
Density / Sq Mi
$73,023
Median Household Income
$41,460
Median Earnings
$984
Median Rent
$247,000
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Commercial building with substantial electrical capacity, flexible interior space, and a high-ceiling basement.
Where is this flex space located?
The property is located at 4863 Us Highway 12 Three Oaks, MI.
What is the asking price?
The asking price for this property is $298,500.
What are key features of this property?
This property features: 1.6‑acre parcel with a 3,500‑square‑foot commercial building; 428 feet of frontage along US Highway 12; 600‑AMP electrical service and steel beam construction
