Medical Office Investment with Dock
For Sale
$1,399,000
2318 Gull Road, Kalamazoo, MI 49048
COMMERCIAL - Kalamazoo, MI
Property Size6,924 SF
Lot Size5.60 Acres
Price / SF$202.05
Days on Market123
Property Features for 2318 Gull Road
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
C-1
Bathrooms
4
Full bathrooms
4
Rooms
Bathroom 1, Bathroom 2, Bathroom 3, Bathroom 4
Interior features
Broadband
Elementary school district
Comstock
Middle school district
Comstock
High school district
Comstock
Standard status
Active
APN
06-11-450-059
Size
6,924 SF
Lot size
5.60 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
On file
Tax Annual Amount
32004
Legal Description
On file
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Amenities
dock access
three-phase power
natural woodwork
full kitchen
Building Details
Year built
1930
Floors in Building
2
Number of units
2
Building materials
Wood Siding, Brick
Roof type
Composition
Listing Agency:
Dover Birch & Associates
(269) 443-0033
Listed By:
Rob Peterson · License #6502431087
(269) 276-0402
Added: Apr 21
Changed: Aug 4
Last Checked: Aug 21 at 6:06AM
MLS# 26016860
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This fully leased investment property features two buildings on a C-1 zoned site. The primary building is a single-story medical office with dock access and three-phase power. A second building provides additional office space in a two-story structure converted from a house, with natural woodwork and a full kitchen.
The property sits on 5.6 acres and is located across from Beacon Hospital (formerly Borgess). Both buildings share an ample parking lot, and there is additional land available for expansion.
Set up for an end user or investor seeking leased medical office space, the configuration combines dock-enabled medical office improvements with supplementary office space housed in a converted building.
The property sits on 5.6 acres and is located across from Beacon Hospital (formerly Borgess). Both buildings share an ample parking lot, and there is additional land available for expansion.
Set up for an end user or investor seeking leased medical office space, the configuration combines dock-enabled medical office improvements with supplementary office space housed in a converted building.
Key Highlights
- Fully leased investment property across from Beacon Hospital (formerly Borgess) on over 5.6 acres of C‑1 zoned land
- Includes two buildings: 5,388 SF single‑story medical office with dock access and three‑phase power
- Second building offers 1,536 SF two‑story office space, converted from a house and includes a full 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
$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
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,053
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully leased medical office property with shared parking, including a dock-access single-story building and a converted two-story office home.
Where is this medical office space located?
The property is located at 2318 Gull Road 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 investment property across from Beacon Hospital (formerly Borgess) on over 5.6 acres of C‑1 zoned land; Includes two buildings: 5,388 SF single‑story medical office with dock access and three‑phase power; Second building offers 1,536 SF two‑story office space, converted from a house and includes a full kitchen
