Equipped Grocery and Convenience
New
For Sale
$5,000,000
939 S US-31, Traverse City, MI 49685
Commercial, Traverse City, MI
Property Size11,900 SF
Lot Size1.47 Acres
Price / SF$420.17
Days on Market3
Property Features for 939 S US-31
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Commercial
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Parking
47
Parking features
Parking Lot
Exterior features
Block
Lot features
Corner Lot
Directions
NE Corner of Beitner and 31
Subdivision
Grand Traverse
Standard status
Active
Size
11,900 SF
Lot size
1.47 Acres
Taxes and HOA fees
Tax Description
COM SW SEC COR FOR POB TH N 400' TH E 250' TH S 400' TH W 250' TO POB SEC 4 T26N R11W HIGHWAY EASEMENT RECORDED 2004R-20155 SBC EASEMENT RECORDED 2004R-20156 PUBLIC UTILITY LINE EASEMENT - SEWER RECORDED 10-24-2005 2005R-24359
Legal Description
COM SW SEC COR FOR POB TH N 400' TH E 250' TH S 400' TH W 250' TO POB SEC 4 T26N R11W HIGHWAY EASEMENT RECORDED 2004R-20155 SBC EASEMENT RECORDED 2004R-20156 PUBLIC UTILITY LINE EASEMENT - SEWER RECORDED 10-24-2005 2005R-24359
Amenities
beer cave
walk-in commercial refrigeration
Building Details
Building materials
Mobile pre-1976
Listing Agency:
Real Estate One Gaylord
(989) 448-8209
Listed By:
Gurpreet Singh
(347) 471-7184
Added: Sep 18
Last Checked: Sep 20 at 1:06AM
MLS# 1950714
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.
The property comprises a 11,900-square-foot grocery and convenience retail operation on 1.47 acres. Improvements include a dedicated beer cave, walk-in commercial refrigeration, two bathrooms, block exterior construction, and a parking lot. Modern facility updates were completed in 2024.
Located at 939 S US-31 in Traverse City, the site offers direct positioning along US-31. The operation carries spirits, craft beers, and specialty barrel selections, with DoorDash delivery integration supporting local orders. The real estate and business components are presented together with inventory options noted in the listing information.
Located at 939 S US-31 in Traverse City, the site offers direct positioning along US-31. The operation carries spirits, craft beers, and specialty barrel selections, with DoorDash delivery integration supporting local orders. The real estate and business components are presented together with inventory options noted in the listing information.
Key Highlights
- 11,900‑square‑foot grocery and convenience retail property
- 1.47‑acre site at 939 S US‑31, Traverse City, MI 49685
- Dedicated beer cave and walk‑in commercial refrigeration
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
$159,065
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
3.18%
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%
$3,181,300
$3.2M
Cap Rate 7%
$2,272,357
$2.3M
Cap Rate 9%
$1,767,389
$1.8M
Market Conditions
NOI Build-Up for 11,900 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
$225.6K $18.96/SF
− Vacancy
−$13.5K −$1.14/SF
EGI
$212.1K $17.82/SF
− OpEx
−$53.0K −$4.46/SF
NOI
$159.1K $13.37/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$18.96 /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%
$3,181,300
Cap Rate 7%
$2,272,357
Cap Rate 9%
$1,767,389
Alternative Uses
Best Use
Specialty Retail
$2.27M
$1.99M – $2.65M
NOI $159,065 @ 7.0% cap · market cap 3.18%
Second Best
Retail
$2.10M
$1.84M – $2.45M
NOI $147,141 @ 7.0% cap · market cap 2.94%
Theoretical Best
Office A
$2.59M
$2.26M – $3.02M
NOI $180,956 @ 7.0% cap · market cap 3.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
211
Businesses Nearby
66k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 93%
Home Improvements & Furnishings 7%
McDonald's
Dining
22,834 visits/mo
0.2 miles
Burger King
Dining
20,721 visits/mo
0.2 miles
Taco Bell
Dining
17,365 visits/mo
0.3 miles
Ace Hardware
Home Improvements & Furnishings
4,604 visits/mo
0.2 miles
Demographics for 49685, MI
20,856
Population
9,395
Households
2.2
Avg Household Size
40
Median Age
38%
College-Educated
95%
High-School Grad
54.2 sq mi
ZIP Area
385
Density / Sq Mi
$82,639
Median Household Income
$45,783
Median Earnings
$1,338
Median Rent
$309,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Similar Off Market Nearby
- Family Fare Supermarket — 4144 US-31, Traverse City, MI 49685
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Established retail operation with beer-focused refrigeration, delivery integration, and dedicated parking.
Where is this grocery and convenience store located?
The property is located at 939 S US-31 Traverse City, MI.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: 11,900‑square‑foot grocery and convenience retail property; 1.47‑acre site at 939 S US‑31, Traverse City, MI 49685; Dedicated beer cave and walk‑in commercial refrigeration
