High-Traffic Commercial Building For
For Sale
$350,000
8669 Red Arrow Highway, Bridgman, MI 49106
Family-owned commercial building with high traffic location and loading docks.
Property Size6,000 SF
Days on Market166
Property Features for 8669 Red Arrow Highway
General Information
Standard status
Active
Size
6,000 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,219
Building Details
Building Size
6,000 SF
Year Built
1955
Buildings
1
Stories
2
Units
1
Listing Agency:
Coldwell Banker Realty
(269) 405-6683
Listed By:
Ingrid Crosby
(269) 405-6683
Source:
Buyatthelake
Added: Mar 11
Changed: Aug 23
Last Checked: Aug 23 at 4:39AM
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 Realty
Investment Insights
Based on property information with market context.
This family-owned commercial building, offered for sale for the first time in over 45 years, is situated in a high-traffic area near I94 exit 12. The property features two loading docks with overhead doors and a ramp to the lower level. Paved parking is available. The location and features offer potential for various business uses.
Key Highlights
- High traffic location ideal for business.
- Close proximity to I‑94 (Exit 12) for easy access.
- Two loading docks with overhead doors.
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
$26,806
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
7.66%
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%
$536,120
$536.1K
Cap Rate 7%
$382,943
$382.9K
Cap Rate 9%
$297,844
$297.8K
Market Conditions
NOI Build-Up for 6,000 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
$41.8K $6.96/SF
− Vacancy
−$3.5K −$0.58/SF
EGI
$38.3K $6.38/SF
− OpEx
−$11.5K −$1.91/SF
NOI
$26.8K $4.47/SF
Area
Berrien County, MI
Vacancy
8.30%
Lease Rate
$6.96 /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%
$536,120
Cap Rate 7%
$382,943
Cap Rate 9%
$297,844
Alternative Uses
Best Use
Retail
$889.8K
$778.6K – $1.04M
NOI $62,285 @ 7.0% cap · market cap 17.80%
Second Best
Warehouse
$465.0K
$406.9K – $542.5K
NOI $32,550 @ 7.0% cap · market cap 9.30%
Theoretical Best
Office A
$1.26M
$1.10M – $1.47M
NOI $88,379 @ 7.0% cap · market cap 25.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
42
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49106, MI
4,822
Population
2,472
Households
2
Avg Household Size
48
Median Age
30%
College-Educated
96%
High-School Grad
14.7 sq mi
ZIP Area
328
Density / Sq Mi
$75,064
Median Household Income
$40,108
Median Earnings
$1,139
Median Rent
$243,400
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- BinTris Moving and Self Storage - Bridgman — 8677 Red Arrow Hwy, Bridgman, MI 49106
Frequently Asked Questions
What type of property is this?
Warehouse - Family-owned commercial building with high traffic location and loading docks.
Where is this warehouse located?
The property is located at 8669 Red Arrow Highway Bridgman, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: High traffic location ideal for business.; Close proximity to I‑94 (Exit 12) for easy access.; Two loading docks with overhead doors.
