Grand Rapids Investment
For Sale
$890,000
820 S Division Ave, Grand Rapids, MI 49507
Two buildings with high traffic, great visibility, and ample parking.
Property Size3,900 SF
Lot Size0.54 Acres
Price / SF$228.21
Days on Market158
Property Features for 820 S Division Ave
General Information
Standard status
Active
Size
3,900 SF
Lot size
0.54 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,217
Building Details
Year Built
2001
Units
2
Listing Agency:
REMAX United
(616) 889-0491
Listed By:
Delky Baez · License #6501321849
(616) 889-0491
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 12:14PM
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 REMAX United
Investment Insights
Based on property information with market context.
This property in Grand Rapids presents an investment opportunity with multiple potential uses. The location benefits from high traffic, good visibility, and ample parking space. The property includes two buildings. The main building is 3,900 square feet and is currently used as a tire shop and auto service facility. A stand-alone building offers 1,008 square feet with various potential uses. The seller will remove all equipment, tools, inventory, and personal belongings by the possession date. The property is easy to show during business hours, from 8:30 AM to 5:00 PM.
Key Highlights
- High‑traffic location with great visibility.
- Two buildings: a 3,900 sqft main building and a 1,008 sqft stand‑alone building.
- Ample parking space.
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
$56,534
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
6.35%
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%
$1,130,680
$1.1M
Cap Rate 7%
$807,629
$807.6K
Cap Rate 9%
$628,156
$628.2K
Market Conditions
NOI Build-Up for 3,900 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
$85.6K $21.96/SF
− Vacancy
−$4.9K −$1.25/SF
EGI
$80.8K $20.71/SF
− OpEx
−$24.2K −$6.21/SF
NOI
$56.5K $14.50/SF
Area
Grand Rapids, MI
Vacancy
5.70%
Lease Rate
$21.96 /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%
$1,130,680
Cap Rate 7%
$807,629
Cap Rate 9%
$628,156
Alternative Uses
Best Use
Retail
$807.6K
$706.7K – $942.2K
NOI $56,534 @ 7.0% cap · market cap 6.35%
Second Best
Industrial
$581.0K
$508.4K – $677.9K
NOI $40,672 @ 7.0% cap · market cap 4.57%
Theoretical Best
Specialty Retail
$905.1K
$792.0K – $1.06M
NOI $63,356 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
745
Businesses Nearby
48k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 65%
Shops & Services 29%
Home Improvements & Furnishings 3%
Electronics 3%
McDonald's
Dining
20,807 visits/mo
0.2 miles
Burger King
Dining
9,500 visits/mo
0.4 miles
Dollar Tree
Shops & Services
9,144 visits/mo
0.1 miles
AutoZone
Shops & Services
4,393 visits/mo
0.2 miles
Ferguson
Home Improvements & Furnishings
1,408 visits/mo
0.5 miles
Demographics for 49507, MI
38,137
Population
13,773
Households
2.8
Avg Household Size
30
Median Age
27%
College-Educated
78%
High-School Grad
5.5 sq mi
ZIP Area
6,934
Density / Sq Mi
$56,578
Median Household Income
$34,939
Median Earnings
$1,114
Median Rent
$179,600
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- GreatWater 360 Auto Care - Corporate Office — 161 Ottawa Ave NW Suite 401, Grand Rapids, MI 49503
- Seppala's Bodyshop & Restoration — 645 Douglas St NW, Grand Rapids, MI 49504
- Advanced Auto Service — 300 Winter Ave NW, Grand Rapids, MI 49504
- Maksim's Safety Services — 235 Seward Ave NW, Grand Rapids, MI 49504
- Dantzler Heavy Duty Towing — 40 Prospect Ave NE, Grand Rapids, MI 49503, United States
Frequently Asked Questions
What type of property is this?
Auto shop - Two buildings with high traffic, great visibility, and ample parking.
Where is this auto shop located?
The property is located at 820 S Division Ave Grand Rapids, MI.
What is the asking price?
The asking price for this property is $890,000.
What are key features of this property?
This property features: High‑traffic location with great visibility.; Two buildings: a **3,900 sqft main building** and a **1,008 sqft stand‑alone building**.; Ample parking space.
