45-Unit Apartment
For Sale
$2,000,000
5590 Paw Paw Lake Rd, Coloma, MI 49038
Multifamily portfolio combining renovated apartments with additional units requiring rehabilitation before occupancy.
Property Size19,400 SF
Days on Market151
Property Features for 5590 Paw Paw Lake Rd
General Information
Standard status
Active
Size
19,400 SF
Property subtype
Multifamily
Occupancy
75%
Units
Unit Mix
17 x studio (10 room-style with communal kitchen), 12 x 1BR, 14 x 2BR, 1 x 3BR, 1 x 4BR
Multifamily Units
45
Additional Details
Highway Access
Yes
Amenities
Irreplaceable setting steps from Paw Paw Lake with strong rental demand and long-term appreciation potential
Renovated units showcase rent growth; remaining classics offer immediate income lift through upgrades
Limited local supply and consistent renter demand drive stable occupancy and long-term income growth
Building Details
Building Size
19,400 SF
Buildings
8
Units
45
Listing Agency:
Chicago Downtown Office
(312) 624-7074
Listed By:
Yianni Mouflouzelis · License #IL: 475.205207, MI: 6501455825, IA: S73371000
(312) 624-7074
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 30
Last Checked: Aug 30 at 7:45AM
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 Chicago Downtown Office
Investment Insights
Based on property information with market context.
This multifamily portfolio comprises eight apartment properties with 45 units spread across nine separate parcel identification numbers. The unit mix includes 17 studios, 12 one-bedroom apartments, 14 two-bedroom apartments, one three-bedroom unit, and one four-bedroom unit. Ten of the studios are room-style units that share a communal kitchen. Approximately 46.7% of the apartments have received updates to flooring, kitchens, and baths, while six units are down and require renovation before they can be occupied.
The properties are located at 5590 Paw Paw Lake Rd in Coloma, Michigan, within the Benton Harbor–St. Joseph MSA. The portfolio is near public access to Paw Paw Lake, a navigable inland lake encompassing over 850 acres. Coloma serves both year-round residents and seasonal visitors, with Chicago accessible in less than two hours via I-94.
The properties are located at 5590 Paw Paw Lake Rd in Coloma, Michigan, within the Benton Harbor–St. Joseph MSA. The portfolio is near public access to Paw Paw Lake, a navigable inland lake encompassing over 850 acres. Coloma serves both year-round residents and seasonal visitors, with Chicago accessible in less than two hours via I-94.
Key Highlights
- 45 units across eight apartment properties
- 17 studios, 12 one‑bedroom, 14 two‑bedroom, one three‑bedroom, and one four‑bedroom unit
- Approximately 46.7% of units renovated with flooring, kitchen, and bath upgrades
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
$158,339
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
7.92%
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%
$3,166,780
$3.2M
Cap Rate 7%
$2,261,986
$2.3M
Cap Rate 9%
$1,759,322
$1.8M
Market Conditions
NOI Build-Up for 19,400 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
$305.0K $15.72/SF
− Vacancy
−$17.1K −$0.88/SF
EGI
$287.9K $14.84/SF
− OpEx
−$129.6K −$6.68/SF
NOI
$158.3K $8.16/SF
Area
Berrien County, MI
Vacancy
5.60%
Lease Rate
$15.72 /SF/Yr
Expense Ratio
45.00%
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%
$3,166,780
Cap Rate 7%
$2,261,986
Cap Rate 9%
$1,759,322
Alternative Uses
Best Use
Apartment 5plus
$2.26M
$1.98M – $2.64M
NOI $158,339 @ 7.0% cap · market cap 7.92%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.08M
$3.57M – $4.76M
NOI $285,759 @ 7.0% cap · market cap 14.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
45
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
28
Businesses Nearby
Explore this area
Business Placement
Demographics for 49038, MI
8,979
Population
5,124
Households
1.8
Avg Household Size
45
Median Age
21%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
230
Density / Sq Mi
$60,396
Median Household Income
$41,663
Median Earnings
$944
Median Rent
$196,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Multifamily portfolio combining renovated apartments with additional units requiring rehabilitation before occupancy.
Where is this apartment building located?
The property is located at 5590 Paw Paw Lake Rd Coloma, MI.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 45 units across eight apartment properties; 17 studios, 12 one‑bedroom, 14 two‑bedroom, one three‑bedroom, and one four‑bedroom unit; Approximately 46.7% of units renovated with flooring, kitchen, and bath upgrades
