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    Mixed-Use Property with Development Potential Title is generated by Realmo AI

    122 W South Street, Kalamazoo, MI 49007

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    For Sale
    $1,200,000

    Mixed-use property with development potential and seller financing.

    Type:Commercial/Industrial
    Property size:
    9,354 SF
    Lot size:
    0.09 Acres
    Price / SF:
    $128/SF
    Added:
    Mar 12, 2026
    Days on Market:
    72
    Last Refresh:
    Apr 6 at 2:49 am

    Property Features for 122 W South Street

    General Information

    Standard status
    Active
    Size
    9,354 SF
    Lot size
    0.09 Acres
    Property subtype
    Commercial/Industrial

    Building Details

    Year Built
    1900

    We can help!

    Listing Contact
    Rob Peterson

    Listing agent Rob Peterson

    Listing office Dover Birch & Associates

    Listing date Mar 12, 2026

    Source Exitrealty

    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 Dover Birch & Associates

    HighLights

    • Development opportunity surrounded by public alleys on three sides, ensuring abundant natural light for future apartments.
    • Seller financing is available.
    • Current owners willing to remain as tenants, helping to offset holding costs.
    • Unusually high basement ceilings ideal for tenant storage with recent moisture‑free improvements.
    • Long‑standing tenant on a month‑to‑month lease and an unoccupied retail space on the ground floor.
    • Located on South Street, a quiet location ideal for high‑end apartments.

    Overview

    This mixed-use property presents a unique development opportunity, benefiting from public alleys on three sides that promise abundant natural light for future apartments. The ground floor features a long-standing tenant on a month-to-month lease, along with an unoccupied retail space and an area suitable for an elevator shaft. The current owners occupy the top two floors and are willing to remain as tenants, which can help offset holding costs. The basement has unusually high ceilings, making it ideal for tenant storage, and it remains moisture-free due to recent improvements. Renovations completed in 1987 included insulated double-hung windows, updated mechanical systems, and refreshed finishes on the upper levels. Located on South Street, the property offers a quiet setting suitable for high-end apartments. Seller financing is available. The property has a total size of 9354 square feet.

    Financial Insights

    Value Estimation Calculated for Mixed Use

    Conservative
    $1.08M
    NOI $96,814 @ 9.00% cap · cautious / downside scenario
    Moderate
    $1.38M
    NOI $96,814 @ 7.00% cap · market / base-case scenario
    Aggressive
    $1.94M
    NOI $96,814 @ 5.00% cap · optimistic / upside scenario

    NOI & Cap Rate Calculator

    NOI Build-Up
    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.
         Calculated for Mixed Use

    Component $ $/SF
    Gross rent $168.4k $18.00
    − Vacancy −$13.5k −$1.44
    EGI $154.9k $16.56
    − OpEx −$58.1k −$6.21
    NOI $96.8k $10.35
    9,354 SF · lease $18.00/SF/yr · vacancy 8.00% · expense 37.50%

    Alternative Use Scenarios

    Best Use
    Mixed Use
    $1.38M
    $1.21M – $1.61M (±1% cap)
    NOI $96,814 @ 7.0% cap · market cap 8.07%
    Second Best
    Retail
    $921.6K
    $806.4K – $1.08M (±1% cap)
    NOI $64,509 @ 7.0% cap · market cap 5.38%
    Theoretical Best
    Warehouse
    $2.45M
    $2.14M – $2.86M (±1% cap)
    NOI $171,343 @ 7.0% cap · market cap 14.28%
    Zoning and permitted uses should be independently verified with local authorities.
    Location Intelligence

    Current Use by Public Records

    William S. Shauman, ... Physician Kalamazoo Psychology LLC Physician Laura M. Kracker, ... Physician Kimberly L. Lem, ... Physician Mary C. Spradling, ... Physician

    Suggested Use

    Real Estate Agency Restaurant Law Firm Spa & Massage Center Dental Office Hair Salon Nail Salon Building Supply Gym & Fitness Center Daycare Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Kalamazoo
    County
    Kalamazoo
    State
    Michigan
    Longitude
    -85.5839
    Latitude
    42.2899

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    FAQs

    What type of property is this?
    Mixed-use property - Mixed-use property with development potential and seller financing.
    Where is this mixed-use property located?
    The property is located at 122 W South Street Kalamazoo, MI.
    What is the asking price?
    The asking price for this property is $1,200,000.
    What are key features of this property?
    This property features: Development opportunity surrounded by public alleys on three sides, ensuring **abundant natural light for future apartments.**; Seller financing is available.; Current owners willing to remain as tenants, helping to offset holding costs.
    (269) 443-0033
    We can help!
    Listing Contact
    Rob Peterson
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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