Established Auto Body
For Sale
$234,900
851 W McMillan Rd, Muskegon, MI 49445
Freestanding repair facility with a fenced rear storage area, paint room, equipment, and extensive shop storage.
Property Size1,792 SF
Price / SF$131.08
Days on Market10
Property Features for 851 W McMillan Rd
General Information
Standard status
Active
Size
1,792 SF
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Amenities
fenced in storage
paint room
Building Details
Year Built
100
Listing Agency:
Aldyn Breeze Realty LLC
(231) 327-8480
Listed By:
Lynda Lear Balkema · License #6502414997
Source:
Katie-k
Added: Aug 21
Changed: Aug 28
Last Checked: Aug 29 at 12:06PM
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 Aldyn Breeze Realty LLC
Investment Insights
Based on property information with market context.
This auto shop occupies a 1,792-square-foot facility at 851 W McMillan Rd in Muskegon, Michigan. The building includes a large rear paint room, substantial storage areas, and a fenced outdoor storage section. Existing improvements include a roof sealed two years ago and a heater installed two years ago.
The sale includes a broad collection of body-repair and fabrication equipment, including a Black Hawk Power Pad System with clamps and chains, two power posts, a drill press with grinder, air grinders, a DA, buffers, sandblasting equipment, floor jacks, a Uni-Spotter, torches, and additional shop tools. A large rolling tool chest is negotiable. The property has been operated as an automotive body-repair business since 1977.
The sale includes a broad collection of body-repair and fabrication equipment, including a Black Hawk Power Pad System with clamps and chains, two power posts, a drill press with grinder, air grinders, a DA, buffers, sandblasting equipment, floor jacks, a Uni-Spotter, torches, and additional shop tools. A large rolling tool chest is negotiable. The property has been operated as an automotive body-repair business since 1977.
Key Highlights
- 1,792‑square‑foot auto body repair facility
- Fenced rear storage area included
- Large paint room and additional storage inside the building
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
$17,189
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
7.32%
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%
$343,780
$343.8K
Cap Rate 7%
$245,557
$245.6K
Cap Rate 9%
$190,989
$191.0K
Market Conditions
NOI Build-Up for 1,792 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
$25.2K $14.04/SF
− Vacancy
−$604 −$0.34/SF
EGI
$24.6K $13.70/SF
− OpEx
−$7.4K −$4.11/SF
NOI
$17.2K $9.59/SF
Area
Muskegon County, MI
Vacancy
2.40%
Lease Rate
$14.04 /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%
$343,780
Cap Rate 7%
$245,557
Cap Rate 9%
$190,989
Alternative Uses
Best Use
Retail
$330.9K
$289.6K – $386.1K
NOI $23,165 @ 7.0% cap · market cap 9.86%
Second Best
Industrial
$245.6K
$214.9K – $286.5K
NOI $17,189 @ 7.0% cap · market cap 7.32%
Theoretical Best
Hotel Hospitality
$16.83M
$14.73M – $19.63M
NOI $1,178,011 @ 7.0% cap · market cap 501.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
59
Businesses Nearby
4k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
BP
Shops & Services
4,345 visits/mo
0.1 miles
Demographics for 49445, MI
21,245
Population
9,109
Households
2.3
Avg Household Size
43
Median Age
29%
College-Educated
96%
High-School Grad
61.1 sq mi
ZIP Area
348
Density / Sq Mi
$80,514
Median Household Income
$45,874
Median Earnings
$1,163
Median Rent
$209,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - Freestanding repair facility with a fenced rear storage area, paint room, equipment, and extensive shop storage.
Where is this auto shop located?
The property is located at 851 W McMillan Rd Muskegon, MI.
What is the asking price?
The asking price for this property is $234,900.
What are key features of this property?
This property features: 1,792‑square‑foot auto body repair facility; Fenced rear storage area included; Large paint room and additional storage inside the building
