16-Bedroom Residential Income
New
For Sale
$1,500,000
1500 Fraternity Village Drive, Kalamazoo, MI 49006
Established group-living residence with commercial-grade kitchen, dedicated supervisory suite, laundry facilities, and recent improvements.
Property Size8,772 SF
Days on Market5
Property Features for 1500 Fraternity Village Drive
General Information
Standard status
Active
Size
8,772 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$24,647
Building Details
Building Size
8,772 SF
Year Built
1998
Buildings
1
Units
1
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 488-3846
Listed By:
Dave A Schnelker
(269) 488-3846
Source:
Eliterealtymi
Added: Aug 18
Changed: Aug 19
Last Checked: Aug 21 at 2:54PM
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 Berkshire Hathaway HomeServices MI
Investment Insights
Based on property information with market context.
Built in 1998, this residential income property has 16 bedrooms along with a separate house-mother suite. The residence includes a commercial-grade kitchen and on-site laundry, supporting its established use as a high-capacity group-living property. Recent work includes roof replacement and laminate flooring installed throughout the residence.
The property is located at 1500 Fraternity Village Drive in Kalamazoo, Michigan. It has been leased to a sorority for 18 years and has also been identified for student living or continued sorority and fraternity use. A floor plan is available for review.
The property is located at 1500 Fraternity Village Drive in Kalamazoo, Michigan. It has been leased to a sorority for 18 years and has also been identified for student living or continued sorority and fraternity use. A floor plan is available for review.
Key Highlights
- 16 bedrooms plus a dedicated house‑mother suite
- Commercial‑grade kitchen for high‑capacity residential use
- On‑site laundry facilities
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
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
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Frequently Asked Questions
What type of property is this?
Residential income property - Established group-living residence with commercial-grade kitchen, dedicated supervisory suite, laundry facilities, and recent improvements.
Where is this residential income 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 bedrooms plus a dedicated house‑mother suite; Commercial‑grade kitchen for high‑capacity residential use; On‑site laundry facilities
