Convertible Retail Building with High
For Sale
Contact for pricing
390 Starboard Dr, Port Austin, MI 48467
Former retail space suitable for residential conversion with 12' ceilings.
Property Size2,400 SF
Price / SF$115
Days on Market1470
Property Features for 390 Starboard Dr
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Retail
Investment Type
Owner/User
Building Details
Year Renovated
2022
Listing Agency:
Transwestern Detroit
Listed By:
Charles Howard · License #MI 6506044836
(248) 440-1447
Source:
Crexi
Added: Aug 30, 2022
Changed: Aug 16
Last Checked: Sep 7 at 8:17AM
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 Transwestern Detroit
Investment Insights
Based on property information with market context.
This property is a former retail building with 2,400 square feet of space. It features 12-foot ceilings throughout. The existing structure is studded and prepared for final design, making it suitable for conversion to residential use. Located in Port Austin, Michigan, this property presents an opportunity for redevelopment.
Key Highlights
- 12’ Ceilings Throughout
- Convertible from Retail to Residential
- Studded Walls Ready for Design
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
$19,862
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
7.20%
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%
$397,240
$397.2K
Cap Rate 7%
$283,743
$283.7K
Cap Rate 9%
$220,689
$220.7K
Market Conditions
NOI Build-Up for 2,400 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
$34.6K $14.40/SF
− Vacancy
−$6.2K −$2.58/SF
EGI
$28.4K $11.82/SF
− OpEx
−$8.5K −$3.55/SF
NOI
$19.9K $8.28/SF
Area
Huron County, MI
Vacancy
17.90%
Lease Rate
$14.40 /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%
$397,240
Cap Rate 7%
$283,743
Cap Rate 9%
$220,689
Alternative Uses
Best Use
Retail
$283.7K
$248.3K – $331.0K
NOI $19,862 @ 7.0% cap · market cap 7.20%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$558.3K
$488.5K – $651.4K
NOI $39,083 @ 7.0% cap · market cap 14.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
Explore this area
Business Placement
Demographics for 48467, MI
2,228
Population
2,913
Households
0.8
Avg Household Size
59
Median Age
27%
College-Educated
94%
High-School Grad
63.0 sq mi
ZIP Area
35
Density / Sq Mi
$50,707
Median Household Income
$35,583
Median Earnings
$682
Median Rent
$156,700
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?
Retail space - Former retail space suitable for residential conversion with 12' ceilings.
Where is this retail space located?
The property is located at 390 Starboard Dr Port Austin, MI.
What is the asking price?
The asking price for this property is $276,000.
What are key features of this property?
This property features: 12’ Ceilings Throughout; Convertible from Retail to Residential; Studded Walls Ready for Design
