Nursing Home With Staff
For Sale
$995,000
5840 Culver Road, Traverse City, MI 49685
Care facility with private bedrooms, accessible bathing areas, and separate living quarters for on-site staff or ownership.
Property Size5,545 SF
Days on Market15
Property Features for 5840 Culver Road
General Information
Standard status
Active
Size
5,545 SF
Total Parking Spaces
3
Property subtype
Business Opportunity
Zoning
Multi-Family, Residential
Amenities
large deck
shed with electric
patio with radiant heat
security system
fire suppression
generator
Building Details
Building Size
5,545 SF
Year Built
1985
Listing Agency:
Krause Realty Solutions
(231) 357-2040
Listed By:
Thomas S Krause
(231) 357-2040
Source:
Carolbollo
Added: Aug 7
Changed: Aug 19
Last Checked: Aug 20 at 1:34PM
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 Krause Realty Solutions
Investment Insights
Based on property information with market context.
This 1985 nursing home property includes 12 private bedrooms on the main and lower levels, with most rooms offering a private or shared half bath. Each area includes an ADA-accessible shower room. A separate upstairs residence provides 3 bedrooms and 1 bath, along with its own secure entrance for on-site staff or owner housing.
The property also includes a large deck, patio with radiant heat, shed with electric, and a huge backyard. A 3-car garage, security system, fire suppression equipment, generator, and furnishings for the foster care portion of the business are included. Zoning is Multi-Family, Residential. The property is located at 5840 Culver Road in Garfield Charter Township, Michigan.
The property also includes a large deck, patio with radiant heat, shed with electric, and a huge backyard. A 3-car garage, security system, fire suppression equipment, generator, and furnishings for the foster care portion of the business are included. Zoning is Multi-Family, Residential. The property is located at 5840 Culver Road in Garfield Charter Township, Michigan.
Key Highlights
- 12 private bedrooms on the main and lower levels
- ADA‑accessible shower room serving each area
- Upstairs residence with 3 bedrooms, 1 bath, and separate secure entry
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
$79,271
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
7.97%
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%
$1,585,420
$1.6M
Cap Rate 7%
$1,132,443
$1.1M
Cap Rate 9%
$880,789
$880.8K
Market Conditions
NOI Build-Up for 5,545 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
$144.4K $26.04/SF
− Vacancy
−$12.3K −$2.21/SF
EGI
$132.1K $23.83/SF
− OpEx
−$52.8K −$9.53/SF
NOI
$79.3K $14.30/SF
Area
Grand Traverse County, MI
Vacancy
8.50%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
40.00%
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%
$1,585,420
Cap Rate 7%
$1,132,443
Cap Rate 9%
$880,789
Alternative Uses
Best Use
Healthcare Medical
$1.13M
$990.9K – $1.32M
NOI $79,271 @ 7.0% cap · market cap 7.97%
Second Best
Apartment 5plus
$752.9K
$658.8K – $878.3K
NOI $52,700 @ 7.0% cap · market cap 5.30%
Theoretical Best
Office A
$1.20M
$1.05M – $1.41M
NOI $84,319 @ 7.0% cap · market cap 8.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
37
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Nursing home - Care facility with private bedrooms, accessible bathing areas, and separate living quarters for on-site staff or ownership.
Where is this nursing home located?
The property is located at 5840 Culver Road Traverse City, MI.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: 12 private bedrooms on the main and lower levels; ADA‑accessible shower room serving each area; Upstairs residence with 3 bedrooms, 1 bath, and separate secure entry
