Medical Office Building with
For Sale
$199,000
20927 KELLY RD, Eastpointe, MI 48021
The property includes an elevator-equipped finished basement and an adjacent parking lot.
Property Size4,197 SF
Price / SF$47.41
Days on Market258
Property Features for 20927 KELLY RD
General Information
Standard status
Active
Size
4,197 SF
Elevators
Yes
Property subtype
Industrial
Property Condition
Severity
Major Repairs Needed
Evidence
extensive interior improvements
Amenities
3
Flat
Building Details
Year Built
1964
Listing Agency:
Pilot Property Group - Residential LLC
(586) 291-0499
Listed By:
Alexander Termini · License #6501392648
(586) 291-0499
Source:
Xome
Added: Dec 14, 2025
Changed: Aug 29
Last Checked: Aug 23 at 2:27AM
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 Pilot Property Group - Residential LLC
Investment Insights
Based on property information with market context.
This 1964 medical office property is located at 20927 Kelly Road in Eastpointe, Michigan. The building includes a full finished basement served by an elevator; the lower level is excluded from the stated square footage. An adjoining parking lot is part of the offering.
The zoning supports office, retail, and personal service uses, providing flexibility for future occupancy. The interior requires extensive improvements, allowing the next owner to reconfigure and update the space for an appropriate commercial use.
The zoning supports office, retail, and personal service uses, providing flexibility for future occupancy. The interior requires extensive improvements, allowing the next owner to reconfigure and update the space for an appropriate commercial use.
Key Highlights
- 1964 medical office building in Eastpointe, MI
- Full finished basement equipped with an elevator
- Basement area is excluded from the stated square footage
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
$14,448
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
7.26%
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%
$288,960
$289.0K
Cap Rate 7%
$206,400
$206.4K
Cap Rate 9%
$160,533
$160.5K
Market Conditions
NOI Build-Up for 4,197 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
$25.2K $6.00/SF
− Vacancy
−$5.9K −$1.41/SF
EGI
$19.3K $4.59/SF
− OpEx
−$4.8K −$1.15/SF
NOI
$14.4K $3.44/SF
Area
Macomb County, MI
Vacancy
23.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
25.00%
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%
$288,960
Cap Rate 7%
$206,400
Cap Rate 9%
$160,533
Alternative Uses
Best Use
Healthcare Medical
$628.6K
$550.0K – $733.4K
NOI $44,002 @ 7.0% cap · market cap 22.11%
Second Best
Office B
$206.4K
$180.6K – $240.8K
NOI $14,448 @ 7.0% cap · market cap 7.26%
Theoretical Best
Specialty Retail
$785.7K
$687.5K – $916.7K
NOI $55,002 @ 7.0% cap · market cap 27.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
749
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48021, MI
34,244
Population
14,124
Households
2.4
Avg Household Size
37
Median Age
15%
College-Educated
89%
High-School Grad
5.1 sq mi
ZIP Area
6,715
Density / Sq Mi
$58,196
Median Household Income
$35,836
Median Earnings
$1,335
Median Rent
$129,100
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- APAWS Veterinary Hospital — 21300 Kelly Rd, Eastpointe, MI 48021
Frequently Asked Questions
What type of property is this?
Medical Office Space - The property includes an elevator-equipped finished basement and an adjacent parking lot.
Where is this medical office space located?
The property is located at 20927 KELLY RD Eastpointe, MI.
What is the asking price?
The asking price for this property is $199,000.
What are key features of this property?
This property features: 1964 medical office building in Eastpointe, MI; Full finished basement equipped with an elevator; Basement area is excluded from the stated square footage
