Licensed Convenience
For Sale
$349,900
Pending
Allegan, MI 49010, Allegan, MI 49010
Commercial Sale, Allegan, MI
Property Size2,706 SF
Lot Size0.30 Acres
Days on Market4828
Property Features
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
201 Comm
Parking
12
Interior features
Broadband
Elementary school district
Allegan
Middle school district
Allegan
High school district
Allegan
Directions
Western Ave, same as m-40 North near water tower
Subdivision
Greater Kalamazoo - K
Standard status
Pending
Size
2,706 SF
Lot size
0.30 Acres
Taxes and HOA fees
Tax Year
2013
Tax Description
Attached
Tax Annual Amount
3025
Legal Description
Attached
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Wall Unit(s), Central Air
Building Details
Year built
1960
Number of units
1
Building materials
Wood Siding
Listing Agency:
Freeman Real Estate
Listed By:
James H Freeman
(269) 686-8800
Added: Jul 15, 2013
Changed: Sep 17
Last Checked: Oct 2 at 2:06PM
MLS# 13041733
Copyright © 2026 Michigan Regional Information Center, LLC. 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 2,706-square-foot grocery and convenience store property occupies 0.3 acres in Allegan, Michigan. Built in 1960, the building has wood siding, forced-air heating, central air, and wall-unit cooling. Broadband and cable availability support the property’s communications infrastructure.
The business is established as a party store and includes SDD, SDM, and Sunday sales licenses. Its existing retail configuration and licensed operating profile provide a defined commercial use for the Allegan property.
The business is established as a party store and includes SDD, SDM, and Sunday sales licenses. Its existing retail configuration and licensed operating profile provide a defined commercial use for the Allegan property.
Key Highlights
- 2,706‑square‑foot grocery and convenience store property
- Situated on 0.3 acres in Allegan, MI
- SDD, SDM, and Sunday sales licenses
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
$30,097
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
8.60%
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%
$601,940
$601.9K
Cap Rate 7%
$429,957
$430.0K
Cap Rate 9%
$334,411
$334.4K
Market Conditions
NOI Build-Up for 2,706 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
$41.9K $15.48/SF
− Vacancy
−$1.8K −$0.65/SF
EGI
$40.1K $14.83/SF
− OpEx
−$10.0K −$3.71/SF
NOI
$30.1K $11.12/SF
Area
Allegan County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$601,940
Cap Rate 7%
$429,957
Cap Rate 9%
$334,411
Alternative Uses
Best Use
Specialty Retail
$430.0K
$376.2K – $501.6K
NOI $30,097 @ 7.0% cap · market cap 8.60%
Second Best
Retail
$401.3K
$351.1K – $468.2K
NOI $28,091 @ 7.0% cap · market cap 8.03%
Theoretical Best
Hotel Hospitality
$25.41M
$22.24M – $29.65M
NOI $1,778,850 @ 7.0% cap · market cap 508.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49010, MI
18,183
Population
7,222
Households
2.5
Avg Household Size
41
Median Age
18%
College-Educated
93%
High-School Grad
156.6 sq mi
ZIP Area
116
Density / Sq Mi
$72,361
Median Household Income
$42,133
Median Earnings
$1,061
Median Rent
$204,200
Median Home Value
Market
Vacancy Rate% for Retail 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?
Grocery and convenience store - Established retail property with SDD, SDM, and Sunday sales licenses.
Where is this grocery and convenience store located?
The property is located at Allegan, MI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: 2,706‑square‑foot grocery and convenience store property; Situated on 0.3 acres in Allegan, MI; SDD, SDM, and Sunday sales licenses
