Residential Income Property with Road
For Sale
$395,000
8921 US-31, Grawn, MI 49637
Commercial, Grawn, MI
Property Size1,276 SF
Lot Size3.20 Acres
Price / SF$309.56
Days on Market446
Property Features for 8921 US-31
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Residential, Commercial
Exterior features
Vinyl, Stone
Lot features
Freestanding
Directions
Just East of Interlochen Corners, property begins at corner of Tonawanda and 31.
Subdivision
Grand Traverse
Standard status
Active
Size
1,276 SF
Lot size
3.20 Acres
Taxes and HOA fees
Tax Description
COM AT INT OF S R/W LN US 31 & W LN OF NW 1/4 OF NW 1/4 TH E ALONG R/W LINE 33 FT TO POB TH S 300 FT E 460 FT N 300 FT TH W ALONG R/W US 31 460 FT TO POB SEC 15 T26N R12W. 3 A.
Legal Description
COM AT INT OF S R/W LN US 31 & W LN OF NW 1/4 OF NW 1/4 TH E ALONG R/W LINE 33 FT TO POB TH S 300 FT E 460 FT N 300 FT TH W ALONG R/W US 31 460 FT TO POB SEC 15 T26N R12W. 3 A.
Utilities
Water source
Private
Building Details
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Bouwman Realty Group
(231) 631-4919
Listed By:
Laurie Bouwman
(231) 631-4919
Added: Jun 2, 2025
Changed: Aug 19
Last Checked: Aug 21 at 12:06AM
MLS# 1934600
Copyright © 2026 Northern Great Lakes Realtors MLS. 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 property includes a residential structure with character features, situated on a wooded back setting. Improvements noted in the remarks include a two-car garage, two large sheds, and a fieldstone fireplace. The offering is supported by substantial road frontage and includes options described for land configuration, including the ability to split the property if desired.
The site is located in Grawn, Michigan, with frontage on US Highway 31. The property is currently zoned Residential, while the Future Master Plan of the township designates the property for Commercial use, and the remarks state zoning can be changed per the township. The location is described as very close to Interlochen Corners, where development is underway, and within reach of Interlochen Village, Interlochen Center for the Arts, and Traverse City.
For buyers, this may be of interest where residential income or mixed-use planning is being considered, given the combination of a livable home, outbuildings, and documented commercial designation in the township’s future plan. The significant road frontage and potential to split the land can support different operational concepts, subject to applicable approvals and the township’s process for zoning changes.
The site is located in Grawn, Michigan, with frontage on US Highway 31. The property is currently zoned Residential, while the Future Master Plan of the township designates the property for Commercial use, and the remarks state zoning can be changed per the township. The location is described as very close to Interlochen Corners, where development is underway, and within reach of Interlochen Village, Interlochen Center for the Arts, and Traverse City.
For buyers, this may be of interest where residential income or mixed-use planning is being considered, given the combination of a livable home, outbuildings, and documented commercial designation in the township’s future plan. The significant road frontage and potential to split the land can support different operational concepts, subject to applicable approvals and the township’s process for zoning changes.
Key Highlights
- Over 425 ft of road frontage on US Highway 31
- Futures master plan designates the property Commercial (currently zoned Residential; change may be possible per Township)
- Home features a two‑car garage plus two large sheds
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
$12,127
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
3.07%
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%
$242,540
$242.5K
Cap Rate 7%
$173,243
$173.2K
Cap Rate 9%
$134,744
$134.7K
Market Conditions
NOI Build-Up for 1,276 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
$23.0K $18.00/SF
− Vacancy
−$919 −$0.72/SF
EGI
$22.0K $17.28/SF
− OpEx
−$9.9K −$7.78/SF
NOI
$12.1K $9.50/SF
Area
Grand Traverse County, MI
Vacancy
4.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
45.00%
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%
$242,540
Cap Rate 7%
$173,243
Cap Rate 9%
$134,744
Alternative Uses
Best Use
Apartment 5plus
$173.2K
$151.6K – $202.1K
NOI $12,127 @ 7.0% cap · market cap 3.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$277.2K
$242.5K – $323.4K
NOI $19,403 @ 7.0% cap · market cap 4.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
31
Businesses Nearby
Explore this area
Business Placement
Demographics for 49637, MI
3,466
Population
1,562
Households
2.2
Avg Household Size
44
Median Age
22%
College-Educated
91%
High-School Grad
22.2 sq mi
ZIP Area
156
Density / Sq Mi
$74,871
Median Household Income
$29,035
Median Earnings
$1,309
Median Rent
$228,100
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Single family property - Extensive highway frontage and on-site structures offer flexible use considerations, with commercial designation noted in the township plan.
Where is this single family property located?
The property is located at 8921 US-31 Grawn, MI.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Over 425 ft of road frontage on US Highway 31; Futures master plan designates the property Commercial (currently zoned Residential; change may be possible per Township); Home features a two‑car garage plus two large sheds
