Waterfront Mixed-Use
For Sale
$425,000
8848 State Avenue, Houghton Lake, MI 48629
COMMERCIAL - Houghton Lake, MI
Property Size2,880 SF
Lot Size0.32 Acres
Price / SF$147.57
Days on Market92
Property Features for 8848 State Avenue
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
C-W
Parking features
Parking Lot
Basement
Crawl Space
Subdivision
Bebee Sub
Directions
From 127 take a right onto M-55 just pass the light on the left.
Standard status
Active
APN
006-120-010-1000
Size
2,880 SF
Lot size
0.32 Acres
Taxes and HOA fees
Tax Description
1111/1533 1111/1532 970/1799 L951/P2607 L833/P6 L383/P502 234 LOTS 10, 11 & 12 BEBEE SUBD SPLIT/COMBINED ON 11/22/2019 FROM 006-120-010-0000, 006-120-011-0000;
Tax Annual Amount
3706
Legal Description
1111/1533 1111/1532 970/1799 L951/P2607 L833/P6 L383/P502 234 LOTS 10, 11 & 12 BEBEE SUBD SPLIT/COMBINED ON 11/22/2019 FROM 006-120-010-0000, 006-120-011-0000;
Utilities
Water source
Well
Water front
1
Amenities
boat slips
Building Details
Floors in Building
1
Listing Agency:
KW Northern Michigan Team Partners
(989) 745-8992
Listed By:
Laura Corpe · License #6501426430
(989) 387-8067
Added: May 22
Changed: Aug 4
Last Checked: Aug 21 at 12:06AM
MLS# 201840270
Copyright © 2026 Water Wonderland Board of Realtors®. 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 2,880-square-foot mixed-use property combines commercial space with residential quarters and storage in the rear portion of the building. The site is associated with the Navajo Trading Post gift store and includes a parking lot, well water, and five boat slips that are currently rented seasonally.
Positioned along a canal with direct access to Houghton Lake, the property has 138 feet of canal frontage on 0.32 acres. C-W zoning allows uses including retail shops, restaurants, motels, and single-family dwellings. Condominiums, microbreweries, and marinas may be considered as special exception uses, subject to applicable approvals and the complete list of permitted uses maintained by Lake Township.
Positioned along a canal with direct access to Houghton Lake, the property has 138 feet of canal frontage on 0.32 acres. C-W zoning allows uses including retail shops, restaurants, motels, and single-family dwellings. Condominiums, microbreweries, and marinas may be considered as special exception uses, subject to applicable approvals and the complete list of permitted uses maintained by Lake Township.
Key Highlights
- 2,880‑square‑foot mixed‑use building with commercial space, residential quarters, and storage
- 138 feet of canal frontage with direct access to Houghton Lake
- 0.32‑acre commercial waterfront site zoned C‑W
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
$25,920
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
6.10%
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%
$518,400
$518.4K
Cap Rate 7%
$370,286
$370.3K
Cap Rate 9%
$288,000
$288.0K
Market Conditions
NOI Build-Up for 2,880 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
$43.2K $15.00/SF
− Vacancy
−$8.6K −$3.00/SF
EGI
$34.6K $12.00/SF
− OpEx
−$8.6K −$3.00/SF
NOI
$25.9K $9.00/SF
Area
Roscommon County, MI
Vacancy
20.00%
Lease Rate
$15.00 /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%
$518,400
Cap Rate 7%
$370,286
Cap Rate 9%
$288,000
Alternative Uses
Best Use
Office B
$370.3K
$324.0K – $432.0K
NOI $25,920 @ 7.0% cap · market cap 6.10%
Second Best
Retail
$297.9K
$260.7K – $347.6K
NOI $20,854 @ 7.0% cap · market cap 4.91%
Theoretical Best
Office A
$474.0K
$414.7K – $553.0K
NOI $33,178 @ 7.0% cap · market cap 7.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
169
Businesses Nearby
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial waterfront zoning supports retail, restaurant, motel, and residential uses.
Where is this mixed-use property located?
The property is located at 8848 State Avenue Houghton Lake, MI.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 2,880‑square‑foot mixed‑use building with commercial space, residential quarters, and storage; 138 feet of canal frontage with direct access to Houghton Lake; 0.32‑acre commercial waterfront site zoned C‑W
