Renovated 11-Unit Studio Apartment
For Sale
$725,000
566 E Columbia Ave, Pontiac, MI 48340
Fully renovated studios feature private entries, kitchens, and baths, with private off-street parking and a detached 3-car garage.
Property Size3,603 SF
Price / SF$201.22
Days on Market529
Property Features for 566 E Columbia Ave
General Information
Standard status
Active
Size
3,603 SF
Class
C
Total Parking Spaces
2
Property subtype
Multifamily
Zoning
R-3
Additional Details
Multifamily Units
11
Amenities
private off-street parking
detached 3-car garage
laundry machine
Building Details
Building Size
3,603 SF
Year Built
1930
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
NAI Farbman
(947) 517-6226
Listed By:
Brandon Ben-Ezra · License #6505136668
(947) 517-6226
Source:
Cpix.resimplifi
Added: Feb 26, 2025
Changed: Aug 8
Last Checked: Aug 9 at 4:31AM
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 NAI Farbman
Investment Insights
Based on property information with market context.
This for-sale multifamily property offers 11 fully renovated studio apartments. Each unit includes its own private entry, kitchen, and bath, and the seller reports no deferred maintenance. The property also includes private off-street parking and a detached 3-car garage.
The building is located in North Pontiac (48340), approximately 3 miles from Great Lakes Crossing Mall, FANUC Campus, and an Amazon Fulfillment Center.
The current rental income is reported at approximately $94,000, with an indicated current NOI of approximately $64,000. The landlord pays for utilities, taxes, and insurance. Laundry machine revenue is reported at approximately $1,000 per year.
The building is located in North Pontiac (48340), approximately 3 miles from Great Lakes Crossing Mall, FANUC Campus, and an Amazon Fulfillment Center.
The current rental income is reported at approximately $94,000, with an indicated current NOI of approximately $64,000. The landlord pays for utilities, taxes, and insurance. Laundry machine revenue is reported at approximately $1,000 per year.
Key Highlights
- 11 studio apartments built in 1930 in North Pontiac (48340)
- Fully renovated with no deferred maintenance; each unit has a private entry, kitchen, and bath
- Rental income about $94,000; current NOI about $64,000 with ability to raise rents closer to market
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
$44,195
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
6.10%
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%
$883,900
$883.9K
Cap Rate 7%
$631,357
$631.4K
Cap Rate 9%
$491,056
$491.1K
Market Conditions
NOI Build-Up for 3,603 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
$83.9K $23.28/SF
− Vacancy
−$3.5K −$0.98/SF
EGI
$80.4K $22.30/SF
− OpEx
−$36.2K −$10.04/SF
NOI
$44.2K $12.27/SF
Area
Oakland County, MI
Vacancy
4.20%
Lease Rate
$23.28 /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%
$883,900
Cap Rate 7%
$631,357
Cap Rate 9%
$491,056
Alternative Uses
Best Use
Apartment 5plus
$631.4K
$552.4K – $736.6K
NOI $44,195 @ 7.0% cap · market cap 6.10%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$777.1K
$680.0K – $906.7K
NOI $54,400 @ 7.0% cap · market cap 7.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
11
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
229
Businesses Nearby
Explore this area
Business Placement
Demographics for 48340, MI
26,039
Population
12,154
Households
2.1
Avg Household Size
33
Median Age
15%
College-Educated
82%
High-School Grad
7.7 sq mi
ZIP Area
3,382
Density / Sq Mi
$46,474
Median Household Income
$32,954
Median Earnings
$1,096
Median Rent
$105,800
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 - Fully renovated studios feature private entries, kitchens, and baths, with private off-street parking and a detached 3-car garage.
Where is this apartment building located?
The property is located at 566 E Columbia Ave Pontiac, MI.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 11 studio apartments built in 1930 in North Pontiac (48340); Fully renovated with no deferred maintenance; each unit has a private entry, kitchen, and bath; Rental income about $94,000; current NOI about $64,000 with ability to raise rents closer to market
