Office-to-Residential Conversion
For Sale
$499,000
126 E South St, Kalamazoo, MI 49007
Three-sided alley setting with extra-high third-floor ceilings and prior 1987 window, mechanical, and finish upgrades.
Property Size7,595 SF
Price / SF$65.70
Days on Market237
Property Features for 126 E South St
General Information
Standard status
Active
Size
7,595 SF
Property subtype
Office
Zoning
D2
Building Details
Year Built
1978
Year Renovated
1987
Listing Agency:
Callander Commercial
Listed By:
Derek Wissner · License #6506048809
(269) 930-1679
Source:
Carwm.resimplifi
Added: Mar 3
Changed: Oct 25
Last Checked: Oct 24 at 1:40PM
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 Callander Commercial
Ask AI about this property
Review the available facts, identify missing information and prepare questions for the agent.
Investment Insights
Based on property information with market context.
This office-to-residential conversion property offers a practical redevelopment path with a third-floor layout that features extra-high ceilings. Renovations completed in 1987 included double-hung windows, updated mechanicals, and refreshed finishes.
The building is surrounded by alleys on three sides, supporting a daylight-oriented residential concept. The ground floor is currently occupied by two month-to-month tenants, and the seller is willing to lease back a portion of the upper-level office space to help offset holding costs.
The property is offered for sale and includes seller financing available, providing flexibility for qualified buyers planning a conversion and repositioning program.
The building is surrounded by alleys on three sides, supporting a daylight-oriented residential concept. The ground floor is currently occupied by two month-to-month tenants, and the seller is willing to lease back a portion of the upper-level office space to help offset holding costs.
The property is offered for sale and includes seller financing available, providing flexibility for qualified buyers planning a conversion and repositioning program.
Key Highlights
- Office‑to‑residential conversion in Kalamazoo with three‑sided alley setting
- Third floor features extra‑high ceilings for loft‑style living
- Ground floor includes two month‑to‑month tenants
Financial Insights
Estimated NOI and Cap Rate
NOI / Yr
$41,024
Cap Rate
8.22%
Suggested Prices Based on Cap Rates
Cap Rate 5%
$820,480
$820.5K
Cap Rate 7%
$586,057
$586.1K
Cap Rate 9%
$455,822
$455.8K
Market Conditions
NOI Build-Up for 7,595 SF
Gross rent
$80.2K $10.56/SF
− Vacancy
−$5.6K −$0.74/SF
EGI
$74.6K $9.82/SF
− OpEx
−$33.6K −$4.42/SF
NOI
$41.0K $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 Rate 5%
$820,480
Cap Rate 7%
$586,057
Cap Rate 9%
$455,822
Alternative Uses
Best Use
Office B
$1.09M
$951.5K – $1.27M
NOI $76,120 @ 7.0% cap · market cap 15.25%
Second Best
Apartment 5plus
$586.1K
$512.8K – $683.7K
NOI $41,024 @ 7.0% cap · market cap 8.22%
Theoretical Best
Warehouse
$1.99M
$1.74M – $2.32M
NOI $139,122 @ 7.0% cap · market cap 27.88%
Zoning and permitted uses should be independently verified with authorities.
How Realmo checks its estimates
Property Analytics
Contact the owner directly
Get the owner's phone numbers and email
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,165
Businesses Nearby
Explore this area
Business Placement
Demographics for 49007, MI
10,353
Population
5,102
Households
2
Avg Household Size
31
Median Age
24%
College-Educated
84%
High-School Grad
3.5 sq mi
ZIP Area
2,958
Density / Sq Mi
$39,309
Median Household Income
$24,723
Median Earnings
$1,017
Median Rent
$103,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Midwest region
Frequently Asked Questions
What type of property is this?
Multifamily property - Three-sided alley setting with extra-high third-floor ceilings and prior 1987 window, mechanical, and finish upgrades.
Where is this multifamily property located?
The property is located at 126 E South St Kalamazoo, MI.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Office‑to‑residential conversion in Kalamazoo with three‑sided alley setting; Third floor features extra‑high ceilings for loft‑style living; Ground floor includes two month‑to‑month tenants
