New Hudson Investment
For Sale
Contact for pricing
56495 Grand River AVE, New Hudson, MI 48165
Investment property with long-term lease potential in growing New Hudson.
Property Size19,800 SF
Price / SF$108.59
Days on Market2149
Property Features for 56495 Grand River AVE
General Information
Standard status
Active
Size
19,800 SF
Class
C
Property subtype
Industrial, Land
Zoning
Edge District
Investment Type
Owner/User
Net Operating Income
$1,000
Building Details
Year Built
1948
Year Renovated
1992
Stories
1
Tenancy
Single
Listing Agency:
CRS, Commercial Real Estate Services
Listed By:
Leo Gonzalez · License #MI 6502126741
Source:
Crexi
Added: Sep 21, 2020
Changed: Aug 8
Last Checked: Jul 23 at 10:45AM
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 CRS, Commercial Real Estate Services
Investment Insights
Based on property information with market context.
This investment property is located in downtown New Hudson, an area rezoned to support future mixed-use projects aimed at expanding the downtown area. The community is experiencing growth, with over 600 new homes and 1,000 jobs added annually through its expanding corporate industrial base, making it one of the top growth communities in Southeast Michigan. The sale includes a lease agreement with a distillery, willing to sign a 10-year NNN lease for 9,360 square feet; the final terms of this lease are negotiable between the buyer and tenant. Additionally, a pool company occupies 6,480 square feet. The landlord is open to signing a placeholder lease at market rents for a one-year term, allowing the buyer to backfill the remaining approximately 3,960 square feet with a permanent tenant at market rent. The 19,800-square-foot building offers many potential uses and is fully equipped with two commercial kitchens, a large office area, and a large warehouse space with truck bays. This property is located on Grand River, east of Milford Road.
Key Highlights
- Long‑term lease opportunity with a well‑known distillery (10 years, 9,360 sf NNN), providing immediate rental income.
- Located in a rapidly growing community with significant new home construction (600+ annually) and job creation (1000+ annually).
- Rezoned area in downtown New Hudson, supporting future mixed‑use development and new business growth.
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
$119,124
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
5.54%
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%
$2,382,480
$2.4M
Cap Rate 7%
$1,701,771
$1.7M
Cap Rate 9%
$1,323,600
$1.3M
Market Conditions
NOI Build-Up for 19,800 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
$145.5K $7.35/SF
− Vacancy
−$5.4K −$0.27/SF
EGI
$140.1K $7.08/SF
− OpEx
−$21.0K −$1.06/SF
NOI
$119.1K $6.02/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /SF/Yr
Expense Ratio
15.00%
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%
$2,382,480
Cap Rate 7%
$1,701,771
Cap Rate 9%
$1,323,600
Alternative Uses
Best Use
Flex RnD
$2.93M
$2.56M – $3.41M
NOI $204,787 @ 7.0% cap · market cap 9.52%
Second Best
Warehouse
$1.70M
$1.49M – $1.99M
NOI $119,124 @ 7.0% cap · market cap 5.54%
Theoretical Best
Specialty Retail
$4.27M
$3.74M – $4.98M
NOI $298,948 @ 7.0% cap · market cap 13.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
346
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48165, MI
8,832
Population
3,587
Households
2.5
Avg Household Size
37
Median Age
51%
College-Educated
95%
High-School Grad
9.9 sq mi
ZIP Area
892
Density / Sq Mi
$105,511
Median Household Income
$59,609
Median Earnings
$1,583
Median Rent
$352,300
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Investment property with long-term lease potential in growing New Hudson.
Where is this flex space located?
The property is located at 56495 Grand River AVE New Hudson, MI.
What is the asking price?
The asking price for this property is $2,150,000.
What are key features of this property?
This property features: Long‑term lease opportunity with a well‑known distillery (10 years, 9,360 sf NNN), providing immediate rental income.; Located in a rapidly growing community with significant new home construction (600+ annually) and job creation (1000+ annually).; Rezoned area in downtown New Hudson, supporting future mixed‑use development and new business growth.
