Automotive Property With
New
For Sale
$799,900
5740 Division Avenue, Grand Rapids, MI 49548
Commercial parcel featuring a retail building, restroom, and four separate offices along a busy commercial corridor.
Property Size2,128 SF
Lot Size1.57 Acres
Days on Market6
Property Features for 5740 Division Avenue
General Information
Standard status
Active
Size
2,128 SF
Lot size
1.57 Acres
Property subtype
Commercial
Zoning
FBC/COMMERCIAL
Site & Location
Road Access
Yes
Outdoor Storage
Yes
Taxes and HOA fees
Annual Taxes
$8,180
Amenities
bath
offices
Building Details
Building Size
2,128 SF
Year Built
1950
Buildings
1
Stories
1
Units
1
Abandoned
No
Listing Agency:
Cascade Properties Rlty LLC
(616) 942-0048
Listed By:
Jordan P Nemmers · License #MICHIGAN6506042764
Source:
Thebrokeragehouse
Added: Aug 25
Changed: Aug 28
Last Checked: Aug 29 at 10:23AM
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 Cascade Properties Rlty LLC
Investment Insights
Based on property information with market context.
This automotive property comprises a 1.566-acre commercial parcel with a retail building, restroom, and four separate offices. The site has operated as a car lot for more than 30 years, providing an established automotive-oriented configuration. Built in 1950, the property offers a combination of retail and office improvements within a commercial zoning designation.
The parcel is positioned on the south side of Division Avenue near Cutlerville, alongside multiple nearby businesses. Its location on a busy avenue provides direct access to an established commercial setting, with the existing building layout supporting automotive, retail, and office functions.
The parcel is positioned on the south side of Division Avenue near Cutlerville, alongside multiple nearby businesses. Its location on a busy avenue provides direct access to an established commercial setting, with the existing building layout supporting automotive, retail, and office functions.
Key Highlights
- 1.566‑acre commercial parcel
- Retail building with restroom and 4 separate offices
- Operating history as a car lot spanning over 30 years
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
$30,847
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
3.86%
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%
$616,940
$616.9K
Cap Rate 7%
$440,671
$440.7K
Cap Rate 9%
$342,744
$342.7K
Market Conditions
NOI Build-Up for 2,128 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
$46.7K $21.96/SF
− Vacancy
−$2.7K −$1.25/SF
EGI
$44.1K $20.71/SF
− OpEx
−$13.2K −$6.21/SF
NOI
$30.8K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /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%
$616,940
Cap Rate 7%
$440,671
Cap Rate 9%
$342,744
Alternative Uses
Best Use
Retail
$440.7K
$385.6K – $514.1K
NOI $30,847 @ 7.0% cap · market cap 3.86%
Second Best
Industrial
$317.0K
$277.4K – $369.9K
NOI $22,192 @ 7.0% cap · market cap 2.77%
Theoretical Best
Specialty Retail
$493.8K
$432.1K – $576.2K
NOI $34,569 @ 7.0% cap · market cap 4.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
379
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49548, MI
34,741
Population
13,174
Households
2.6
Avg Household Size
34
Median Age
17%
College-Educated
86%
High-School Grad
10.8 sq mi
ZIP Area
3,217
Density / Sq Mi
$62,218
Median Household Income
$35,831
Median Earnings
$1,129
Median Rent
$149,500
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Car Rental — 5824 Division Ave S, Grand Rapids, MI 49548
- U-Haul Neighborhood Dealer — 5633 Division Ave S, Wyoming, MI 49548
- Division Ave Self Storage — 5633 Division Ave S, Wyoming, MI 49548
- DRC Customs — 5610 Division Ave S #103, Kentwood, MI 49548
- Penske Truck Rental — 5475 clay ave sw, grand rapids, mi 49548
Frequently Asked Questions
What type of property is this?
Automotive property - Commercial parcel featuring a retail building, restroom, and four separate offices along a busy commercial corridor.
Where is this automotive property located?
The property is located at 5740 Division Avenue Grand Rapids, MI.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: 1.566‑acre commercial parcel; Retail building with restroom and 4 separate offices; Operating history as a car lot spanning over 30 years
