Commercial Land Across From
For Sale
$1,900,000
5007 28th St SE, Grand Rapids, MI 49512
B2-zoned commercial land with existing improvements, on-site parking, signage, and convenient access near a major highway interchange.
Property Size12,000 SF
Price / SF$158.33
Days on Market560
Property Features for 5007 28th St SE
General Information
Standard status
Active
Size
12,000 SF
Total Parking Spaces
27
Property subtype
Retail
Zoning
B2
Amenities
Water
Sewer
27 Parking Spaces
Building Details
Year Built
1976
Listing Agency:
Advantage Commercial Real Estate
(248) 892-2634
Listed By:
Cody Smith · License #6501443789
(248) 892-2634
Source:
Carwm.resimplifi
Added: Feb 17, 2025
Changed: Aug 28
Last Checked: Aug 28 at 8:39PM
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 Advantage Commercial Real Estate
Investment Insights
Based on property information with market context.
This 1.58-acre commercial land parcel carries B2, General Business zoning and includes existing improvements dating to 1976. The property offers approximately 12,000 square feet of space, on-site parking, and both pylon and building signage. Approximately 170 feet of frontage supports exposure along the 28th Street SE corridor.
The site is directly across from Costco and west of the I-96/28th Street interchange, connecting the property with nearby highway routes. Surrounding retailers include Sam’s Club, Hobby Lobby, Starbucks, The Home Depot, Floor & Decor, Total Wine, Target, Value City Furniture, IHOP, and Tropical Smoothie.
The site is directly across from Costco and west of the I-96/28th Street interchange, connecting the property with nearby highway routes. Surrounding retailers include Sam’s Club, Hobby Lobby, Starbucks, The Home Depot, Floor & Decor, Total Wine, Target, Value City Furniture, IHOP, and Tropical Smoothie.
Key Highlights
- 1.58 acres of B2, General Business‑zoned commercial land
- Approximately 12,000 square feet of existing property space
- Approximately 170 feet of frontage along 28th Street SE
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
$173,950
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
9.16%
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%
$3,479,000
$3.5M
Cap Rate 7%
$2,485,000
$2.5M
Cap Rate 9%
$1,932,778
$1.9M
Market Conditions
NOI Build-Up for 12,000 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
$263.5K $21.96/SF
− Vacancy
−$15.0K −$1.25/SF
EGI
$248.5K $20.71/SF
− OpEx
−$74.5K −$6.21/SF
NOI
$173.9K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
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%
$3,479,000
Cap Rate 7%
$2,485,000
Cap Rate 9%
$1,932,778
Alternative Uses
Best Use
Retail
$2.48M
$2.17M – $2.90M
NOI $173,950 @ 7.0% cap · market cap 9.16%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.78M
$2.44M – $3.25M
NOI $194,940 @ 7.0% cap · market cap 10.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
336
Businesses Nearby
543k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 47%
Dining 18%
Groceries 12%
Apparel 9%
Costco Wholesale
Superstores
131,765 visits/mo
0.3 miles
Target
Superstores
124,600 visits/mo
0.5 miles
DICK'S Sporting Goods
Apparel
49,449 visits/mo
0.5 miles
Total Wine & More
Groceries
40,739 visits/mo
0.2 miles
McDonald's
Dining
36,530 visits/mo
0.1 miles
Demographics for 49512, MI
18,558
Population
8,870
Households
2.1
Avg Household Size
33
Median Age
38%
College-Educated
91%
High-School Grad
23.0 sq mi
ZIP Area
807
Density / Sq Mi
$70,955
Median Household Income
$41,538
Median Earnings
$1,229
Median Rent
$279,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - B2-zoned commercial land with existing improvements, on-site parking, signage, and convenient access near a major highway interchange.
Where is this commercial land located?
The property is located at 5007 28th St SE Grand Rapids, MI.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 1.58 acres of B2, General Business‑zoned commercial land; Approximately 12,000 square feet of existing property space; Approximately 170 feet of frontage along 28th Street SE
