Duplex with Three-Lot
For Sale
Under Contract
$599,000
535 W Twelfth Street, Traverse City, MI 49684
Single Family, 2 Story, Apartment, Duplex, Traverse City, MI
Property Size2,490 SF
Lot Size0.28 Acres
Price / SF$240.56
Days on Market88
Property Features for 535 W Twelfth Street
General Information
Property type
Residential
Property subtype
Duplex
Zoning
Residential,Multi-Family,
Zoning description
Residential, Multi-Family, Special Use
Bedrooms
3
Bathrooms
3
Full bathrooms
1
Rooms
Den, Bedroom 3, Bathroom 3, Bathroom 2, Bedroom 1, Bathroom 1, Bedroom 2
Patio and Porch features
Patio
Interior features
Granite Kitchen Tops, Den/Study
Exterior features
Patio, Sidewalk, Landscaped
Fireplace
1
Appliances
Refrigerator, Oven/Range, Dishwasher, Microwave, Washer, Dryer, Blinds, Drapes, Curtain Rods
Elementary school district
Traverse City Area Public Schools
Middle school district
Traverse City Area Public Schools
High school district
Traverse City Area Public Schools
Directions
500 block on W 12th St downtown.
Subdivision
Hannah's 5th add
Standard status
Active Under Contract
Size
2,490 SF
Lot size
0.28 Acres
Taxes and HOA fees
Tax Description
LOTS 16-17-18 BLOCK 5 HANNAH'S 5TH ADD
Legal Description
LOTS 16-17-18 BLOCK 5 HANNAH'S 5TH ADD
Amenities
outdoor fireplace
Building Details
Year built
1948
Floors in Building
2
Building materials
Frame
Roof type
Asphalt
Architectural style
Other
Listing Agency:
REMAX Bayshore - Union St TC · RE/MAX International
(231) 941-4500
Listed By:
Troy Daily · License #6501442788
(231) 288-7676
Added: Jun 18
Changed: Sep 13
Last Checked: Sep 13 at 11:06AM
MLS# 1946785
Copyright © 2026 Northern Great Lakes Realtors MLS. 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 legal duplex contains 2,490 square feet on a 0.28-acre triple lot. The main-level residence provides two bedrooms, one bathroom, a kitchen remodeled in 2020, and a bathroom updated in 2023. A dining room and 2009 greenhouse addition expand the usable living area. The upper unit is configured as a licensed hair salon and can be returned to a one-bedroom, one-bath apartment with removal of a wash station and tile replacement.
The lower level was updated in 2018 and includes a full kitchen, full bathroom, and a non-conforming room that may become a bedroom with an egress window. The furnace and water heater were replaced in 2018, while the siding and storm improvements date to approximately 2003. A two-car driveway is accessed from the alley, with additional street parking. The property includes a patio, outdoor fireplace, landscaped grounds, and residential multi-family zoning at 535 W Twelfth Street in Traverse City.
The lower level was updated in 2018 and includes a full kitchen, full bathroom, and a non-conforming room that may become a bedroom with an egress window. The furnace and water heater were replaced in 2018, while the siding and storm improvements date to approximately 2003. A two-car driveway is accessed from the alley, with additional street parking. The property includes a patio, outdoor fireplace, landscaped grounds, and residential multi-family zoning at 535 W Twelfth Street in Traverse City.
Key Highlights
- Legal duplex on a 0.28‑acre triple lot
- 2,490 SF property with a two‑bedroom main‑level residence
- Upper unit operates as a licensed hair salon and can convert to a 1‑bed, 1‑bath apartment
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
$26,966
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
4.50%
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%
$539,320
$539.3K
Cap Rate 7%
$385,229
$385.2K
Cap Rate 9%
$299,622
$299.6K
Market Conditions
NOI Build-Up for 2,490 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
$40.3K $16.20/SF
− Vacancy
−$1.8K −$0.73/SF
EGI
$38.5K $15.47/SF
− OpEx
−$11.6K −$4.64/SF
NOI
$27.0K $10.83/SF
Area
Grand Traverse County, MI
Vacancy
4.50%
Lease Rate
$16.20 /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%
$539,320
Cap Rate 7%
$385,229
Cap Rate 9%
$299,622
Alternative Uses
Best Use
Multifamily LT 5
$385.2K
$337.1K – $449.4K
NOI $26,966 @ 7.0% cap · market cap 4.50%
Second Best
Apartment 5plus
$338.1K
$295.8K – $394.4K
NOI $23,665 @ 7.0% cap · market cap 3.95%
Theoretical Best
Office A
$540.9K
$473.3K – $631.1K
NOI $37,864 @ 7.0% cap · market cap 6.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
748
Businesses Nearby
Explore this area
Business Placement
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Flexible multi-family property with updated living areas, a convertible upper unit, and residential multi-family zoning.
Where is this duplex located?
The property is located at 535 W Twelfth Street Traverse City, MI.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Legal duplex on a 0.28‑acre triple lot; 2,490 SF property with a two‑bedroom main‑level residence; Upper unit operates as a licensed hair salon and can convert to a 1‑bed, 1‑bath apartment
