16-Bedroom Residential Income
For Sale
$1,500,000
1500 Fraternity Village Dr, Kalamazoo, MI 49006
High-capacity residence with a commercial-grade kitchen, dedicated house-mother suite, and on-site laundry facilities.
Property Size8,772 SF
Price / SF$170
Days on Market51
Property Features for 1500 Fraternity Village Dr
General Information
Standard status
Active
Size
8,772 SF
Amenities
commercial-grade kitchen
on-site laundry facilities
Building Details
Year Built
1998
Tenancy
Single
Listing Agency:
Berkshire Hathaway HomeServices MI
Listed By:
Dave A Schnelker
(269) 488-3846
Source:
Katie-k
Added: Jul 20
Changed: Aug 29
Last Checked: Sep 7 at 12:48PM
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 provides a high-capacity configuration with 16 bedrooms and a separate house-mother suite. The residence also includes a commercial-grade kitchen and on-site laundry facilities, supporting its established group-living format. Recent physical improvements include a new roof and laminate flooring throughout.
Located at 1500 Fraternity Village Drive in Kalamazoo, the property has been leased to a sorority for 18 years. Its existing layout and institutional-style amenities support continued sorority or fraternity occupancy, as well as other group-housing or student-living applications identified in the property information.
Located at 1500 Fraternity Village Drive in Kalamazoo, the property has been leased to a sorority for 18 years. Its existing layout and institutional-style amenities support continued sorority or fraternity occupancy, as well as other group-housing or student-living applications identified in the property information.
Key Highlights
- 16 bedrooms plus a dedicated house‑mother suite
- Leased to a sorority for 18 years
- Commercial‑grade kitchen
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
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 - High-capacity residence with a commercial-grade kitchen, dedicated house-mother suite, and on-site laundry facilities.
Where is this residential income property located?
The property is located at 1500 Fraternity Village Dr 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; Leased to a sorority for 18 years; Commercial‑grade kitchen
