Listing Agency: NORTHERN MICHIGAN LAND BROKERS - H Show Phone

Listed By: JEREMY ROWE · License #UPAR Show Phone

Added: Dec 12, 2025 Changed: Aug 4 Last Checked: Aug 21 at 4:06PM

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MLS# 50196031

Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This mixed-use property pairs a remodeled storefront with an upstairs apartment and additional attic area suitable for a bedroom or storage. The apartment also includes a private deck. Recent improvements include new coolers, while the sale includes two stand-up freezers, a chest freezer, an ice cream display freezer, and a commercial glass-door refrigerator. Additional equipment consists of a washer, dryer, refrigerator, and dishwasher.

The 2,259-square-foot property occupies 0.52 acres across three lots, providing substantial on-site parking for customers and occupants. Public water serves the property. Located at 52062 Duncan Avenue in Hubbell, Michigan, the building offers a combination of retail operations and residential space within a single property.

Key Highlights

• 2,259‑square‑foot mixed‑use property on 0.52 acres
• Remodeled storefront with new coolers
• Upstairs apartment with private deck and attic area

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

$21,699

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

7.24%

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%

$433,980 $434.0K

Cap Rate 7%

$309,986 $310.0K

Cap Rate 9%

$241,100 $241.1K

Market Conditions

NOI Build-Up for 2,259 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

$35.2K $15.60/SF

− Vacancy

−$6.3K −$2.79/SF

EGI

$28.9K $12.81/SF

− OpEx

−$7.2K −$3.20/SF

NOI

$21.7K $9.61/SF

Area

Houghton County, MI

Vacancy

17.90%

Lease Rate

$15.60 /SF/Yr

Expense Ratio

25.00%

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%

$433,980

Cap Rate 7%

$309,986

Cap Rate 9%

$241,100

Alternative Uses

Best Use

Specialty Retail

$310.0K

$271.2K – $361.7K (±1% cap)

NOI $21,699 @ 7.0% cap · market cap 7.24%

Second Best

Retail

$287.1K

$251.2K – $335.0K (±1% cap)

NOI $20,097 @ 7.0% cap · market cap 6.70%

Theoretical Best

Multifamily LT 5

$27.93M

$24.44M – $32.59M (±1% cap)

NOI $1,955,250 @ 7.0% cap · market cap 651.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Northern Lights Party ... Grocery & Convenience Store

Suggested Use

Top Pick Garden Center Grocery & Convenience Store Computer & Electronic Repair Tech Support Center Restaurant Pet Grooming Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

53

Businesses Nearby

Explore this area Business Placement

Demographics for 49945, MI

2,650

Population

2,247

Households

1.2

Avg Household Size

51

Median Age

25%

College-Educated

92%

High-School Grad

149.0 sq mi

ZIP Area

18

Density / Sq Mi

$52,866

Median Household Income

$32,168

Median Earnings

$495

Median Rent

$142,800

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Remodeled retail space includes an upstairs apartment, private deck, and ample parking across three lots.

Where is this mixed-use property located?

The property is located at 52062 Duncan Avenue Hubbell, MI.

What is the asking price?

The asking price for this property is $299,900.

What are key features of this property?

This property features: 2,259‑square‑foot mixed‑use property on 0.52 acres; Remodeled storefront with new coolers; Upstairs apartment with private deck and attic area