18-Unit Apartment
For Sale
$1,900,000
51 SPOKANE DR, Pontiac, MI 48341
Turn-key 18-unit two-bedroom rental with most units occupied and extensive recent exterior and interior updates.
Property Size12,746 SF
Price / SF$149.07
Days on Market131
Property Features for 51 SPOKANE DR
General Information
Standard status
Active
Size
12,746 SF
Property subtype
Industrial
Occupancy
94%
Additional Details
Business Included
Yes
Multifamily Units
18
Amenities
3
Asphalt
236210
Building Details
Year Built
19
Tenancy
Multi
Listing Agency:
(248) 417-9617
Listed By:
Keller Williams Somerset
(248) 417-9617
Source:
Xome
Added: Apr 2
Changed: Aug 8
Last Checked: Aug 10 at 2:55AM
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 Keller Williams Somerset
Investment Insights
Based on property information with market context.
This turn-key apartment property totals 18 two-bedroom units. Seventeen of the 18 units are currently occupied and tenants are reported current on rent. Each unit is described as having a private entrance and basement, with individual natural gas furnaces and separate utility setups that include individual water meters.
The complex has undergone extensive updates. A new roof was installed across the entire property in 2024 with a 20-year transferable warranty, and the exterior includes new concrete walkways in the courtyard, cultured stone on nine porches, newly shingled porch overhangs, updated front exterior doors, glass block windows in every unit, and newer gutters, trim, and exterior security lighting. The west side of the building includes a newer asphalt parking lot, and a security camera system is in place.
According to the provided information, 12 units include central air, and 10 units have newer furnaces. One master key provides access to the building for convenience. The current mortgage may be assumable for qualified buyers at 7.0% or less interest rate, and the remarks project NOI of $259,200 through rent increases on under-market units and leasing the remaining vacancy.
The complex has undergone extensive updates. A new roof was installed across the entire property in 2024 with a 20-year transferable warranty, and the exterior includes new concrete walkways in the courtyard, cultured stone on nine porches, newly shingled porch overhangs, updated front exterior doors, glass block windows in every unit, and newer gutters, trim, and exterior security lighting. The west side of the building includes a newer asphalt parking lot, and a security camera system is in place.
According to the provided information, 12 units include central air, and 10 units have newer furnaces. One master key provides access to the building for convenience. The current mortgage may be assumable for qualified buyers at 7.0% or less interest rate, and the remarks project NOI of $259,200 through rent increases on under-market units and leasing the remaining vacancy.
Key Highlights
- 18 two‑bedroom rental units averaging about $1,130/month; 17 units occupied and tenants are current on rent
- Each unit has a private entrance and basement, with individual natural gas furnaces and separate utility setups including individual water meters
- Extensive updates: 9 units renovated within the last 4 years and 16 bathrooms updated
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
$156,345
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
8.23%
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%
$3,126,900
$3.1M
Cap Rate 7%
$2,233,500
$2.2M
Cap Rate 9%
$1,737,167
$1.7M
Market Conditions
NOI Build-Up for 12,746 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
$296.7K $23.28/SF
− Vacancy
−$12.5K −$0.98/SF
EGI
$284.3K $22.30/SF
− OpEx
−$127.9K −$10.04/SF
NOI
$156.3K $12.27/SF
Area
Oakland County, MI
Vacancy
4.20%
Lease Rate
$23.28 /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%
$3,126,900
Cap Rate 7%
$2,233,500
Cap Rate 9%
$1,737,167
Alternative Uses
Best Use
Apartment 5plus
$2.23M
$1.95M – $2.61M
NOI $156,345 @ 7.0% cap · market cap 8.23%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.75M
$2.41M – $3.21M
NOI $192,444 @ 7.0% cap · market cap 10.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
18
Residential units
94.4%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
572
Businesses Nearby
Explore this area
Business Placement
Demographics for 48341, MI
16,980
Population
8,601
Households
2
Avg Household Size
38
Median Age
24%
College-Educated
86%
High-School Grad
6.7 sq mi
ZIP Area
2,534
Density / Sq Mi
$46,185
Median Household Income
$34,200
Median Earnings
$917
Median Rent
$124,600
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?
Apartment building - Turn-key 18-unit two-bedroom rental with most units occupied and extensive recent exterior and interior updates.
Where is this apartment building located?
The property is located at 51 SPOKANE DR Pontiac, 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: 18 two‑bedroom rental units averaging about $1,130/month; 17 units occupied and tenants are current on rent; Each unit has a private entrance and basement, with individual natural gas furnaces and separate utility setups including individual water meters; Extensive updates: 9 units renovated within the last 4 years and 16 bathrooms updated
