Industrial Property with Leased
For Sale
$425,000
5000 N Stephenson Avenue, Iron Mountain, MI 49801
Flex-industrial complex on a fully cleared two-acre lot with living quarters, workshops, and leased shop space.
Property Size8,852 SF
Lot Size2.00 Acres
Price / SF$48.01
Days on Market397
Property Features for 5000 N Stephenson Avenue
General Information
Standard status
Active
Size
8,852 SF
Lot size
2.00 Acres
Taxes and HOA fees
Annual Taxes
$15,093
Listing Agency:
LEEDS REAL ESTATE
(906) 282-4906
Listed By:
KELLY CHALLANCIN · License #6501420449
(906) 282-4906
Source:
Exprealty
Added: Jul 23, 2025
Changed: Aug 20
Last Checked: Aug 22 at 11:06AM
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 LEEDS REAL ESTATE
Investment Insights
Based on property information with market context.
This versatile industrial property on a fully cleared and professionally graded two-acre lot combines multiple structures and functional spaces. It includes 2-bedroom, 1-bath living quarters that could also be used as office space or a conference room/break room. There is an approximately 1,400+ sq ft workshop area and a 2,400+ sq ft shop building with overhead doors. A renovated 2,700+ sq ft retail space is also on site, with a 1/2 bath and an upper-level open area that can be adapted for additional office space. The property is equipped with newer forced NFA heating systems (two total). Since 2023, improvements include new septic, a well pressure tank, a water heater, and concrete work, along with major excavation, new retaining walls, and professional landscaping.
The property is located just minutes from the WI border and the local airport, supporting a variety of business and development plans.
The workshop and the 2,400 sq ft shop building are currently leased, with terms noted as negotiable, providing flexibility for an owner-occupant or investor.
The property is located just minutes from the WI border and the local airport, supporting a variety of business and development plans.
The workshop and the 2,400 sq ft shop building are currently leased, with terms noted as negotiable, providing flexibility for an owner-occupant or investor.
Key Highlights
- 9,000+ SF flex‑industrial/commercial complex on a fully cleared, professionally graded 2‑acre lot
- Includes 2‑bedroom, 1‑bath living quarters that could also be used as office or conference/break‑room space
- 1,400+ SF workshop area plus a 2,400+ SF shop building with overhead doors
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
$37,864
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
8.91%
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%
$757,280
$757.3K
Cap Rate 7%
$540,914
$540.9K
Cap Rate 9%
$420,711
$420.7K
Market Conditions
NOI Build-Up for 8,852 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
$64.8K $7.32/SF
− Vacancy
−$6.5K −$0.74/SF
EGI
$58.3K $6.58/SF
− OpEx
−$20.4K −$2.30/SF
NOI
$37.9K $4.28/SF
Area
Dickinson County, MI
Vacancy
10.10%
Lease Rate
$7.32 /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%
$757,280
Cap Rate 7%
$540,914
Cap Rate 9%
$420,711
Alternative Uses
Best Use
Retail
$1.14M
$998.2K – $1.33M
NOI $79,859 @ 7.0% cap · market cap 18.79%
Second Best
Warehouse
$755.3K
$660.9K – $881.2K
NOI $52,870 @ 7.0% cap · market cap 12.44%
Theoretical Best
Office A
$1.71M
$1.49M – $1.99M
NOI $119,464 @ 7.0% cap · market cap 28.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
107
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Flex-industrial complex on a fully cleared two-acre lot with living quarters, workshops, and leased shop space.
Where is this flex space located?
The property is located at 5000 N Stephenson Avenue Iron Mountain, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 9,000+ SF flex‑industrial/commercial complex on a fully cleared, professionally graded 2‑acre lot; Includes 2‑bedroom, 1‑bath living quarters that could also be used as office or conference/break‑room space; 1,400+ SF workshop area plus a 2,400+ SF shop building with overhead doors
