Prime Corner Commercial Development
For Sale
Contact for pricing
730 W Houghton Lake Drive, Prudenville, MI 48651
High-visibility corner lot suitable for commercial development.
Property Size3,059 SF
Price / SF$208.89
Days on Market1518
Property Features for 730 W Houghton Lake Drive
General Information
Standard status
Active
Size
3,059 SF
Property subtype
Special Purpose
Zoning
Village Mixed Use
Building Details
Year Built
1987
Listing Agency:
Coldwell Banker Commercial Schmidt, Realtors Prudenville
Listed By:
Ruth Clemens · License #65-06043271
(989) 429-3100
Source:
Crexi
Added: Jul 14, 2022
Changed: Aug 16
Last Checked: Sep 8 at 5:54AM
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 Coldwell Banker Commercial Schmidt, Realtors Prudenville
Investment Insights
Based on property information with market context.
Located at the corner of M-18 South and M-55, this property is situated across from Walgreens. The site benefits from a five-corner stop light location, offering high visibility and exposure. Zoned Village Mixed Use, the property presents numerous options for development. The property size is 3059 square feet. An adjacent lakefront vacant lot is also available for purchase.
Key Highlights
- Prime corner lot location at the intersection of M‑18 South & M‑55.
- High visibility due to its location across from Walgreens at a five‑corner stop light.
- Zoned Village Mixed Use, allowing for numerous development options.
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
$21,451
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
3.36%
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%
$429,020
$429.0K
Cap Rate 7%
$306,443
$306.4K
Cap Rate 9%
$238,344
$238.3K
Market Conditions
NOI Build-Up for 3,059 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
$40.4K $13.20/SF
− Vacancy
−$6.1K −$1.98/SF
EGI
$34.3K $11.22/SF
− OpEx
−$12.9K −$4.21/SF
NOI
$21.5K $7.01/SF
Area
Roscommon County, MI
Vacancy
15.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
37.50%
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%
$429,020
Cap Rate 7%
$306,443
Cap Rate 9%
$238,344
Alternative Uses
Best Use
Mixed Use
$306.4K
$268.1K – $357.5K
NOI $21,451 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$503.4K
$440.5K – $587.3K
NOI $35,240 @ 7.0% cap · market cap 5.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
132
Businesses Nearby
Explore this area
Business Placement
Demographics for 48651, MI
4,396
Population
3,825
Households
1.1
Avg Household Size
56
Median Age
19%
College-Educated
92%
High-School Grad
71.0 sq mi
ZIP Area
62
Density / Sq Mi
$42,938
Median Household Income
$32,917
Median Earnings
$797
Median Rent
$156,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - High-visibility corner lot suitable for commercial development.
Where is this commercial land located?
The property is located at 730 W Houghton Lake Drive Prudenville, MI.
What is the asking price?
The asking price for this property is $639,000.
What are key features of this property?
This property features: Prime corner lot location at the intersection of M‑18 South & M‑55.; High visibility due to its location across from Walgreens at a five‑corner stop light.; Zoned Village Mixed Use, allowing for numerous development options.
