Heated Self-Storage
New
For Sale
$307,900
5949 Storage Loop Dr, Traverse City, MI 49685
Commercially zoned storage unit with insulated construction, private bathroom, natural gas heat, and access near US-31.
Property Size3,200 SF
Price / SF$96.22
Days on Market2
Property Features for 5949 Storage Loop Dr
General Information
Standard status
Active
Size
3,200 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Building Details
Year Built
2022
Construction
pole-barn construction
Listing Agency:
REO-TCRandolph-233022
(231) 883-6837
Listed By:
Mary Rollert · License #6501404074
(231) 883-6837
Source:
Elliman
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 1:41PM
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 REO-TCRandolph-233022
Investment Insights
Based on property information with market context.
This 2022 self-storage unit is part of a storage site condominium development and measures 40' x 80'. Pole-barn construction includes 16-foot steel sidewalls, a shingled roof, insulated sidewalls, blown-in ceiling insulation, and two 14' x 14' insulated overhead doors. The interior has a 4-inch reinforced concrete slab, finished white-steel walls and ceiling, forced-air natural gas heat, additional electrical outlets, and a centrally positioned ceiling fan. A finished bathroom includes a toilet, sink, vanity light, exhaust fan with light, small electric heater, and 2.5-gallon water heater.
The property is commercially zoned and has convenient access just off US-31 and West Silver Lake Road. Site features include a 5-foot concrete approach and an extra-wide asphalt driveway. Natural gas, water, and community septic are available, with details addressed in the disclosure statement. The unit is suited to personal or business storage needs.
The property is commercially zoned and has convenient access just off US-31 and West Silver Lake Road. Site features include a 5-foot concrete approach and an extra-wide asphalt driveway. Natural gas, water, and community septic are available, with details addressed in the disclosure statement. The unit is suited to personal or business storage needs.
Key Highlights
- 40' x 80' heated storage unit built in 2022
- Two 14' x 14' insulated overhead doors
- 16‑foot steel sidewalls with insulated construction
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
$26,708
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
8.67%
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%
$534,160
$534.2K
Cap Rate 7%
$381,543
$381.5K
Cap Rate 9%
$296,756
$296.8K
Market Conditions
NOI Build-Up for 3,200 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
$41.5K $12.96/SF
− Vacancy
−$3.3K −$1.04/SF
EGI
$38.2K $11.92/SF
− OpEx
−$11.4K −$3.58/SF
NOI
$26.7K $8.35/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$12.96 /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%
$534,160
Cap Rate 7%
$381,543
Cap Rate 9%
$296,756
Alternative Uses
Best Use
Self Storage
$381.5K
$333.9K – $445.1K
NOI $26,708 @ 7.0% cap · market cap 8.67%
Second Best
Warehouse
$363.8K
$318.3K – $424.4K
NOI $25,466 @ 7.0% cap · market cap 8.27%
Theoretical Best
Office A
$695.1K
$608.3K – $811.0K
NOI $48,660 @ 7.0% cap · market cap 15.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
2,080
Businesses Nearby
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
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Self storage facility - Commercially zoned storage unit with insulated construction, private bathroom, natural gas heat, and access near US-31.
Where is this self storage facility located?
The property is located at 5949 Storage Loop Dr Traverse City, MI.
What is the asking price?
The asking price for this property is $307,900.
What are key features of this property?
This property features: 40' x 80' heated storage unit built in 2022; Two 14' x 14' insulated overhead doors; 16‑foot steel sidewalls with insulated construction
