Mixed-Use Commercial
For Sale
$4,800,000
531 Michigan Ave, Miami Beach, FL 33139
Mixed-use building with ground-floor retail space and five annually leased hotel rooms on the second floor.
Property Size7,889 SF
Days on Market161
Property Features for 531 Michigan Ave
General Information
Standard status
Active
Size
7,889 SF
Property subtype
Retail
Taxes and HOA fees
Annual Taxes
$38,029
Building Details
Building Size
7,889 SF
Year Built
1940
Tenancy
Multi
Listing Agency:
Cromwell & Forbes Inc
Listed By:
Laurent Benzaquen · License #3149154
(305) 905-1305
Source:
Marcelosteinmander
Added: Mar 29
Changed: Sep 3
Last Checked: Sep 5 at 4:40AM
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 Cromwell & Forbes Inc
Investment Insights
Based on property information with market context.
This mixed-use commercial building includes three separate commercial spaces and five hotel rooms. The ground floor is arranged for a convenience store, a massage/spa, and a mechanic shop. The second floor consists of five hotel room–sized units, each described as approximately 200 square feet, and they are leased out annually.
The property is located on Michigan Ave between 5th and 6th Street in Miami Beach, FL 33139.
Overall, the building provides a combination of street-level retail/service tenants and small, annually leased hotel room units under one ownership structure.
The property is located on Michigan Ave between 5th and 6th Street in Miami Beach, FL 33139.
Overall, the building provides a combination of street-level retail/service tenants and small, annually leased hotel room units under one ownership structure.
Key Highlights
- Mixed‑use commercial building on Michigan Ave between 5th and 6th street
- Ground‑floor mix includes a convenience store, massage/spa, and mechanic shop
- Includes 3 commercial locations and 5 hotel room units
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
$151,871
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
3.16%
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%
$3,037,420
$3.0M
Cap Rate 7%
$2,169,586
$2.2M
Cap Rate 9%
$1,687,456
$1.7M
Market Conditions
NOI Build-Up for 7,889 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
$217.7K $27.60/SF
− Vacancy
−$15.2K −$1.93/SF
EGI
$202.5K $25.67/SF
− OpEx
−$50.6K −$6.42/SF
NOI
$151.9K $19.25/SF
Area
Miami-Dade County, FL
Vacancy
7.00%
Lease Rate
$27.60 /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%
$3,037,420
Cap Rate 7%
$2,169,586
Cap Rate 9%
$1,687,456
Alternative Uses
Best Use
Specialty Retail
$2.17M
$1.90M – $2.53M
NOI $151,871 @ 7.0% cap · market cap 3.16%
Second Best
Retail
$1.91M
$1.67M – $2.22M
NOI $133,397 @ 7.0% cap · market cap 2.78%
Theoretical Best
Office A
$4.00M
$3.50M – $4.67M
NOI $280,170 @ 7.0% cap · market cap 5.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,746
Businesses Nearby
Explore this area
Business Placement
Demographics for 33139, FL
36,286
Population
30,166
Households
1.2
Avg Household Size
43
Median Age
53%
College-Educated
89%
High-School Grad
2.8 sq mi
ZIP Area
12,959
Density / Sq Mi
$63,368
Median Household Income
$48,608
Median Earnings
$1,745
Median Rent
$480,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Mixed-use building with ground-floor retail space and five annually leased hotel rooms on the second floor.
Where is this hotel located?
The property is located at 531 Michigan Ave Miami Beach, FL.
What is the asking price?
The asking price for this property is $4,800,000.
What are key features of this property?
This property features: Mixed‑use commercial building on Michigan Ave between 5th and 6th street; Ground‑floor mix includes a convenience store, massage/spa, and mechanic shop; Includes 3 commercial locations and 5 hotel room units
