Building Details

Year Built 1984

Listing Agency: Greenridge Realty (Ionia) d***@greenridge.com Show Phone

Listed By: Darin K Elliott

Source: Metrodetroithomeguide

Added: Dec 3, 2025 Changed: Aug 29 Last Checked: Aug 25 at 7:12AM

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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 Greenridge Realty (Ionia)

Investment Insights

Based on property information with market context.

This convenience retail property offers a 1,000-square-foot store with a full kitchen, updated food-service equipment and appliances, an automated ice maker and beverage system, a coffee and cappuccino station, and a soft-serve machine. The interior includes commercial coolers, an ice cream freezer, an eating area, tile flooring, rustic wood finishes, updated fixtures, and refreshed mechanical systems. Improvements completed within the past 2 years include a new roof and siding.

The property is located at 5460 Orleans Road in Orleans, Michigan, less than ½ mile from M-44. The sale includes the stocked retail operation, cigarettes, a full vape case, and additional retail merchandise. An extended retail food license is in place, along with a beer, wine, and liquor license that includes Sun Sales. The building was constructed in 1984.

Key Highlights

• 1,000 sq. ft. convenience retail store
• Renovations completed within the past 2 years
• New roof, siding, and mechanical systems

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

$13,338

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

4.45%

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%

$266,760 $266.8K

Cap Rate 7%

$190,543 $190.5K

Cap Rate 9%

$148,200 $148.2K

Market Conditions

NOI Build-Up for 1,000 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

$19.0K $18.96/SF

− Vacancy

−$1.2K −$1.18/SF

EGI

$17.8K $17.78/SF

− OpEx

−$4.4K −$4.45/SF

NOI

$13.3K $13.34/SF

Area

Ionia County, MI

Vacancy

6.20%

Lease Rate

$18.96 /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%

$266,760

Cap Rate 7%

$190,543

Cap Rate 9%

$148,200

Alternative Uses

Best Use

Specialty Retail

$190.5K

$166.7K – $222.3K (±1% cap)

NOI $13,338 @ 7.0% cap · market cap 4.45%

Second Best

Retail

$139.5K

$122.1K – $162.8K (±1% cap)

NOI $9,765 @ 7.0% cap · market cap 3.26%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick Auto Repair Shop Garden Center Daycare Center Tattoo & Piercing Shop

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

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

19

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 48865, MI

1,756

Population

698

Households

2.5

Avg Household Size

43

Median Age

12%

College-Educated

90%

High-School Grad

21.4 sq mi

ZIP Area

82

Density / Sq Mi

$68,889

Median Household Income

$41,667

Median Earnings

$782

Median Rent

$123,400

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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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Recently renovated retail operation with food-service equipment, beverage systems, coolers, and an extended retail food license.

Where is this grocery and convenience store located?

The property is located at 5460 Orleans Rd Orleans, 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: 1,000 sq. ft. convenience retail store; Renovations completed within the past 2 years; New roof, siding, and mechanical systems