Downtown Mixed-Use Property For
For Sale
$390,000
517 E Eighth Street, Traverse City, MI 49686
Mixed-use property in growing downtown neighborhood, suitable for various uses.
Property Size820 SF
Lot Size0.13 Acres
Price / SF$348.21
Days on Market169
Property Features for 517 E Eighth Street
General Information
Standard status
Active
Size
820 SF
Lot size
0.13 Acres
Property subtype
Retail
Building Details
Building Size
820 SF
Year Built
1886
Listing Agency:
Coldwell Banker Commercial Schmidt Realtors
(231) 633-0432
Listed By:
Dan Stiebel · License #6506040160
(231) 633-0432
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 8
Last Checked: Apr 5 at 8:41PM
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 Coldwell Banker Commercial Schmidt Realtors
Investment Insights
Based on property information with market context.
Located in a growing downtown neighborhood, this property on Eighth Street is suitable for retail, office, residential, or development purposes. The property includes a deep parking lot that provides parking space or allows for building expansion or the construction of a second building. The main floor, which has an area of 820 square feet, was recently occupied by a jewelry store. The property also includes a full kitchen, a full bath, a half bath, and two additional rooms upstairs, encompassing another 300 square feet, making it suitable for residential or mixed-use purposes. The property features a basement with washer and dryer hook-up, and a new water and sewer line to the building was installed within the last 5 years. The property is zoned D-2 and sits on 0.13 acres.
Key Highlights
- Prime downtown Eighth Street location in growing neighborhood.
- Zoned D‑2, allowing for retail, office, residential, or development.
- Deep parking lot offers ample parking or expansion potential.
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
$13,849
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
3.55%
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%
$276,980
$277.0K
Cap Rate 7%
$197,843
$197.8K
Cap Rate 9%
$153,878
$153.9K
Market Conditions
NOI Build-Up for 1,120 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
$21.5K $19.20/SF
− Vacancy
−$1.7K −$1.54/SF
EGI
$19.8K $17.66/SF
− OpEx
−$5.9K −$5.30/SF
NOI
$13.8K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /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%
$276,980
Cap Rate 7%
$197,843
Cap Rate 9%
$153,878
Alternative Uses
Best Use
Retail
$197.8K
$173.1K – $230.8K
NOI $13,849 @ 7.0% cap · market cap 3.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$243.3K
$212.9K – $283.9K
NOI $17,031 @ 7.0% cap · market cap 4.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,696
Businesses Nearby
44k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 70%
Hotels & Casinos 19%
Shops & Services 10%
McDonald's
Dining
21,017 visits/mo
0.4 miles
Delamar Traverse City
Hotels & Casinos
8,479 visits/mo
0.4 miles
KFC
Dining
5,731 visits/mo
0.5 miles
Shell
Shops & Services
4,298 visits/mo
0.1 miles
Peace, Love & Little Donuts
Dining
2,254 visits/mo
0.4 miles
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Mourning Wreaths — 617 e state st, traverse city, mi 49686
Frequently Asked Questions
What type of property is this?
Storefront property - Mixed-use property in growing downtown neighborhood, suitable for various uses.
Where is this storefront property located?
The property is located at 517 E Eighth Street Traverse City, MI.
What is the asking price?
The asking price for this property is $390,000.
What are key features of this property?
This property features: Prime downtown Eighth Street location in growing neighborhood.; Zoned D‑2, allowing for retail, office, residential, or development.; Deep parking lot offers ample parking or expansion potential.
