16-Bedroom Student Housing
For Sale
$1,500,000
1500 Fraternity Village Drive, Kalamazoo, MI 49006
COMMERCIAL - Kalamazoo, MI
Property Size8,772 SF
Lot Size1.11 Acres
Price / SF$170
Days on Market271
Property Features for 1500 Fraternity Village Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
8
Full bathrooms
8
Rooms
Bathroom 8, Bathroom 1, Bathroom 6, Bathroom 2, Bathroom 7, Bathroom 5, Bathroom 4, Bathroom 3
Interior features
Broadband
Elementary school district
Kalamazoo
Middle school district
Kalamazoo
High school district
Kalamazoo
Directions
West on W. Michigan from Howard, South on Fraternity Village Dr. to Sorority
Subdivision
Greater Kalamazoo - K
Standard status
Active
APN
06-20-355-017
Size
8,772 SF
Lot size
1.11 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
FRATERNITY VILLAGE LOT 17
Tax Annual Amount
24647
Legal Description
FRATERNITY VILLAGE LOT 17
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1998
Floors in Building
3
Number of units
1
Building materials
Aluminum Siding, Brick
Roof type
Composition
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 344-8599
Listed By:
Dave A Schnelker
(269) 488-3846
Added: Nov 25, 2025
Changed: Aug 4
Last Checked: Aug 23 at 5:06AM
MLS# 25059867
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 single-family income residence is currently leased to a sorority and has been operating in that use for the past 18 years. The home is configured with 16 bedrooms plus a dedicated house-mother suite, along with a commercial-grade kitchen and on-site laundry facilities. Recent upgrades include a new roof and laminate flooring throughout.
The property is located at 1500 Fraternity Village Drive in Kalamazoo, Michigan (Kalamazoo County). The offering is supported by an attached floor plan.
With its larger bedroom count and institutional-style amenities, the residence is designed to support group living and continued sorority/fraternity use. The seller is a licensed real estate broker in the State of Michigan.
The property is located at 1500 Fraternity Village Drive in Kalamazoo, Michigan (Kalamazoo County). The offering is supported by an attached floor plan.
With its larger bedroom count and institutional-style amenities, the residence is designed to support group living and continued sorority/fraternity use. The seller is a licensed real estate broker in the State of Michigan.
Key Highlights
- 16‑bedroom leased residence with a dedicated house‑mother suite; has been leased to a sorority for the past 18 years
- Commercial‑grade kitchen plus on‑site laundry facilities
- Central air and forced‑air heating; broadband available
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
$47,381
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
3.16%
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%
$947,620
$947.6K
Cap Rate 7%
$676,871
$676.9K
Cap Rate 9%
$526,456
$526.5K
Market Conditions
NOI Build-Up for 8,772 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
$92.6K $10.56/SF
− Vacancy
−$6.5K −$0.74/SF
EGI
$86.1K $9.82/SF
− OpEx
−$38.8K −$4.42/SF
NOI
$47.4K $5.40/SF
Area
Kalamazoo County, MI
Vacancy
7.00%
Lease Rate
$10.56 /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%
$947,620
Cap Rate 7%
$676,871
Cap Rate 9%
$526,456
Alternative Uses
Best Use
Apartment 5plus
$676.9K
$592.3K – $789.7K
NOI $47,381 @ 7.0% cap · market cap 3.16%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$2.30M
$2.01M – $2.68M
NOI $160,682 @ 7.0% cap · market cap 10.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
478
Businesses Nearby
Explore this area
Business Placement
Demographics for 49006, MI
25,119
Population
12,093
Households
2.1
Avg Household Size
27
Median Age
44%
College-Educated
91%
High-School Grad
6.0 sq mi
ZIP Area
4,187
Density / Sq Mi
$45,617
Median Household Income
$18,710
Median Earnings
$991
Median Rent
$198,000
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 - Single-family income residence leased to a sorority features 16 bedrooms, a house-mother suite, commercial kitchen, and laundry facilities.
Where is this single family property located?
The property is located at 1500 Fraternity Village Drive Kalamazoo, MI.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 16‑bedroom leased residence with a dedicated house‑mother suite; has been leased to a sorority for the past 18 years; Commercial‑grade kitchen plus on‑site laundry facilities; Central air and forced‑air heating; broadband available
