Assisted Living Facility with Staff
For Sale
$995,000
5840 Culver Road, Traverse City, MI 49685
COMMERCIAL - Traverse City, MI
Property Size5,545 SF
Lot Size1.00 Acre
Price / SF$179.44
Days on Market39
Property Features for 5840 Culver Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Residential, Multi-Family
Bathrooms
10
Full bathrooms
10
Rooms
Bathroom 5, Bathroom 1, Bathroom 8, Bathroom 2, Bathroom 10, Bathroom 7, Bathroom 6, Bathroom 9, Bathroom 4, Bathroom 3
Parking features
Parking Lot
Exterior features
Vinyl
Directions
From TC take 31 S to right on W South Airport Rd. Tturn left onto Silver Lake Rd. Continue straight road becomes N West Silver Lake Rd. Turn right on Culver Rd. Property on right by school entrance.
Subdivision
Grand Traverse
Special listing conditions
In Foreclosure
Standard status
Active
Size
5,545 SF
Lot size
1.00 Acre
Taxes and HOA fees
Tax Description
PT GOVT LOT 7 SEC 31 T27N R11W COM W1/4 COR TH S 88 DEG 54'E 820.5' TH N 01DEG 6'E 33' TO POB TH N 290.4' TH E 150' TH S 290.4' TH W TO POB.
Legal Description
PT GOVT LOT 7 SEC 31 T27N R11W COM W1/4 COR TH S 88 DEG 54'E 820.5' TH N 01DEG 6'E 33' TO POB TH N 290.4' TH E 150' TH S 290.4' TH W TO POB.
Utilities
Water source
Private
Amenities
security system
generator
large deck
shed with electric
patio with radiant heat
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Krause Realty Solutions
(231) 714-7219
Listed By:
Thomas Krause
(231) 357-2040
Added: Jul 2
Changed: Aug 7
Last Checked: Aug 9 at 12:06PM
MLS# 1936103
Copyright © 2026 Northern Great Lakes Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 5840 Culver Road in Traverse City, this 5,545-square-foot assisted living facility occupies 1 acre and was previously operated as an adult foster care and nursing home property. The main and lower levels contain 12 private bedrooms, with most offering a private or shared half bath. ADA-accessible shower rooms serve each area, supporting the property's care-oriented layout.
An upper-level residence provides 3 bedrooms and 1 bath, with its own secure entrance and space intended for on-site staff or owner housing. Exterior improvements include a large deck, patio with radiant heat, electrically serviced shed, and 3-car garage. The sale includes furnishings associated with the foster care portion, along with a security system, fire suppression equipment, and generator. The building has frame construction, vinyl exterior, asphalt roofing, private water, and a parking lot.
An upper-level residence provides 3 bedrooms and 1 bath, with its own secure entrance and space intended for on-site staff or owner housing. Exterior improvements include a large deck, patio with radiant heat, electrically serviced shed, and 3-car garage. The sale includes furnishings associated with the foster care portion, along with a security system, fire suppression equipment, and generator. The building has frame construction, vinyl exterior, asphalt roofing, private water, and a parking lot.
Key Highlights
- 5,545 square feet on 1 acre
- Main and lower levels include 12 private bedrooms
- Upper residence has 3 bedrooms, 1 bath, and a 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
Lease Details
Turnkey business
Opportunity
Yes
Sprinkler system
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?
Assisted living facility - Configured with accessible bathing areas, separated upper-level housing, and multiple building-support systems.
Where is this assisted living facility 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: 5,545 square feet on 1 acre; Main and lower levels include 12 private bedrooms; Upper residence has 3 bedrooms, 1 bath, and a separate secure entry
