Two-Building Medical Office
For Sale
$1,399,000
2318 Gull Rd, Kalamazoo, MI 49048
Fully leased property offers office accommodations, dock access, three-phase power, and shared parking across from Beacon Hospital.
Property Size6,924 SF
Lot Size5.60 Acres
Price / SF$202.05
Days on Market28
Property Features for 2318 Gull Rd
General Information
Standard status
Active
Size
6,924 SF
Lot size
5.60 Acres
Zoning
C-1
Occupancy
100%
Amenities
dock access
three-phase power
natural woodwork
full kitchen
Building Details
Year Built
1930
Buildings
2
Building Size
6,924 SF
Listing Agency:
Dover Birch & Associates
(269) 276-0402
Listed By:
Rob Peterson · License #6502431087
Source:
Katie-k
Added: Aug 3
Changed: Aug 29
Last Checked: Aug 29 at 4:52PM
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
Investment Insights
Based on property information with market context.
This fully leased medical office property comprises two separate buildings totaling 6,924 SF on more than 5.6 acres of C-1-zoned land. The primary structure is a single-story medical office building measuring 5.388 SF, with dock access and three-phase power. A second building provides 1,536 SF across two stories and is a house converted for office use, featuring natural woodwork and a full kitchen.
The property is located across from Beacon Hospital, formerly Borgess, and both buildings use a shared parking lot. The acreage also includes land identified for expansion, providing additional physical capacity within the existing site. The combination of medical office space, a supplementary office building, on-site parking, and established occupancy creates a multi-building commercial property with varied workspace configurations.
The property is located across from Beacon Hospital, formerly Borgess, and both buildings use a shared parking lot. The acreage also includes land identified for expansion, providing additional physical capacity within the existing site. The combination of medical office space, a supplementary office building, on-site parking, and established occupancy creates a multi-building commercial property with varied workspace configurations.
Key Highlights
- Fully leased medical office property across from Beacon Hospital, formerly Borgess
- Two buildings totaling 6,924 SF on over 5.6 acres
- Primary single‑story medical office building measures 5.388 SF
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
$69,395
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
4.96%
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%
$1,387,900
$1.4M
Cap Rate 7%
$991,357
$991.4K
Cap Rate 9%
$771,056
$771.1K
Market Conditions
NOI Build-Up for 6,924 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
$99.7K $14.40/SF
− Vacancy
−$7.2K −$1.04/SF
EGI
$92.5K $13.36/SF
− OpEx
−$23.1K −$3.34/SF
NOI
$69.4K $10.02/SF
Area
Kalamazoo County, MI
Vacancy
7.20%
Lease Rate
$14.40 /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%
$1,387,900
Cap Rate 7%
$991,357
Cap Rate 9%
$771,056
Alternative Uses
Best Use
Office B
$991.4K
$867.4K – $1.16M
NOI $69,395 @ 7.0% cap · market cap 4.96%
Second Best
Healthcare Medical
$889.3K
$778.2K – $1.04M
NOI $62,254 @ 7.0% cap · market cap 4.45%
Theoretical Best
Warehouse
$1.81M
$1.59M – $2.11M
NOI $126,831 @ 7.0% cap · market cap 9.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
943
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49048, MI
25,067
Population
10,440
Households
2.4
Avg Household Size
36
Median Age
25%
College-Educated
90%
High-School Grad
35.1 sq mi
ZIP Area
714
Density / Sq Mi
$62,160
Median Household Income
$36,150
Median Earnings
$1,032
Median Rent
$158,300
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully leased property offers office accommodations, dock access, three-phase power, and shared parking across from Beacon Hospital.
Where is this medical office space located?
The property is located at 2318 Gull Rd Kalamazoo, MI.
What is the asking price?
The asking price for this property is $1,399,000.
What are key features of this property?
This property features: Fully leased medical office property across from Beacon Hospital, formerly Borgess; Two buildings totaling 6,924 SF on over 5.6 acres; Primary single‑story medical office building measures 5.388 SF
