Historic Mixed-Use
For Sale
$1,400,000
601 Randolph Street, Traverse City, MI 49684
Commercial, Traverse City, MI
Property Size3,250 SF
Lot Size0.06 Acres
Price / SF$430.77
Days on Market593
Property Features for 601 Randolph Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Residential, Multi-Family, Office, Retail, Commercial, Restaurant/Food
Parking
4
Parking features
Assigned
Exterior features
Wood, Brick
Lot features
Corner Lot, Freestanding
Directions
From the Intersection of US31 and Division, head South. Turn Left on to Randolph Street. Corner of Randolph Street & North Maple Street.
Subdivision
Grand Traverse
Standard status
Active
Size
3,250 SF
Lot size
0.06 Acres
Taxes and HOA fees
Tax Description
LOT 12 ALSO E 1 FT OF LOT 11 BLK 2 HANNAH LAY & CO'S 4TH ADD
Tax Annual Amount
13986
Legal Description
LOT 12 ALSO E 1 FT OF LOT 11 BLK 2 HANNAH LAY & CO'S 4TH ADD
Building Details
Building materials
Brick, Block
Roof type
Membrane
Listing Agency:
Key Realty One-TC
(231) 559-0351
Listed By:
Tammy Jarvis · License #6501424501
(231) 342-9937
Added: Feb 8, 2025
Changed: Sep 5
Last Checked: Sep 24 at 1:06PM
MLS# 1930733
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.
This standalone brick building dates to the 1800s and contains 3,250 square feet on a 0.06-acre parcel. The main floor accommodates commercial use, while the property also includes two one-bedroom apartments. Exterior materials include brick and wood, with a membrane roof and assigned parking.
The property extends to the alley and includes two parking spots, with additional build-out identified as a possibility in the property information. A deeded scenic easement provides a connection to West Bay. The address is near shopping, dining, transportation, beaches, and festivals in Traverse City.
The offering includes the building and property only; the operating business and its equipment are excluded.
The property extends to the alley and includes two parking spots, with additional build-out identified as a possibility in the property information. A deeded scenic easement provides a connection to West Bay. The address is near shopping, dining, transportation, beaches, and festivals in Traverse City.
The offering includes the building and property only; the operating business and its equipment are excluded.
Key Highlights
- 3,250‑square‑foot mixed‑use building on 0.06 acres
- Building dates to the 1800s and features brick and wood exterior materials
- Two one‑bedroom apartments included
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
$43,442
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
3.10%
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%
$868,840
$868.8K
Cap Rate 7%
$620,600
$620.6K
Cap Rate 9%
$482,689
$482.7K
Market Conditions
NOI Build-Up for 3,250 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
$61.6K $18.96/SF
− Vacancy
−$3.7K −$1.14/SF
EGI
$57.9K $17.82/SF
− OpEx
−$14.5K −$4.46/SF
NOI
$43.4K $13.37/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
25.00%
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%
$868,840
Cap Rate 7%
$620,600
Cap Rate 9%
$482,689
Alternative Uses
Best Use
Specialty Retail
$620.6K
$543.0K – $724.0K
NOI $43,442 @ 7.0% cap · market cap 3.10%
Second Best
Retail
$574.1K
$502.3K – $669.8K
NOI $40,186 @ 7.0% cap · market cap 2.87%
Theoretical Best
Office A
$706.0K
$617.8K – $823.7K
NOI $49,421 @ 7.0% cap · market cap 3.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,571
Businesses Nearby
31k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 50%
Home Improvements & Furnishings 32%
Hotels & Casinos 18%
Speedway
Shops & Services
11,773 visits/mo
0.3 miles
Ace Hardware
Home Improvements & Furnishings
10,142 visits/mo
0.3 miles
Hotel Indigo Traverse City
Hotels & Casinos
5,501 visits/mo
0.4 miles
Huntington Bank
Shops & Services
3,876 visits/mo
0.4 miles
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Standalone brick property combines commercial space with two one-bedroom apartments.
Where is this mixed-use property located?
The property is located at 601 Randolph Street Traverse City, MI.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 3,250‑square‑foot mixed‑use building on 0.06 acres; Building dates to the 1800s and features brick and wood exterior materials; Two one‑bedroom apartments included
