Downtown Mixed-Use Building For
For Sale
$355,000
Pending
517 E Eighth St, Traverse City, MI 49686
Mixed-use building in growing downtown neighborhood, suitable for various purposes.
Property Size1,120 SF
Days on Market110
Property Features for 517 E Eighth St
General Information
Standard status
Pending
Size
1,120 SF
Property subtype
Commercial
Building Details
Year Built
1886
Listing Agency:
Coldwell Banker Schmidt-522
(231) 633-0432
Listed By:
Daniel J Stiebel · License #6502352362
Source:
Elliman
Added: Apr 24
Changed: Jul 10
Last Checked: Jul 23 at 9:44AM
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 Schmidt-522
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 and allows for building expansion or the construction of a second building. The main floor, which encompasses 820 square feet, was previously occupied by Edward Freund Jewelry. The building also features a full kitchen, a full bath, a half bath, and two additional rooms upstairs, providing another 300 square feet of space, making it suitable for residential or mixed-use purposes. The property includes a basement with washer and dryer hook-up. A new water and sewer line was installed to the building within the last 5 years. The property is zoned D-2. The bike score is 71, indicating it is very bikeable, and the walk score is 60, indicating it is somewhat walkable.
Key Highlights
- Prime downtown location on Eighth Street.
- Deep parking lot offers parking or expansion potential.
- Flexible zoning (D‑2) allows for retail, office, residential, or development.
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
3.90%
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 3.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$243.3K
$212.9K – $283.9K
NOI $17,031 @ 7.0% cap · market cap 4.80%
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
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
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Frequently Asked Questions
What type of property is this?
Retail space - Mixed-use building in growing downtown neighborhood, suitable for various purposes.
Where is this retail space located?
The property is located at 517 E Eighth St Traverse City, MI.
What is the asking price?
The asking price for this property is $355,000.
What are key features of this property?
This property features: Prime downtown location on Eighth Street.; Deep parking lot offers parking or expansion potential.; Flexible zoning (D‑2) allows for retail, office, residential, or development.
