Dock-Access Medical Office
For Sale
$1,399,000
2318 Gull Road, Kalamazoo, MI 49048
Single-story medical office with dock access, plus a converted two-story second building on shared parking and C-1 zoned land.
Property Size6,924 SF
Lot Size5.50 Acres
Price / SF$202.05
Days on Market229
Property Features for 2318 Gull Road
General Information
Standard status
Active
Size
6,924 SF
Lot size
5.50 Acres
Property subtype
Office
Zoning
C-1
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$32,004
Amenities
3
IRR
Building Details
Year Built
1930
Listing Agency:
Dover Birch & Associates
(269) 443-0033
Listed By:
Rob Peterson · License #6502431087
Source:
Xome
Added: Jan 6
Changed: Aug 12
Last Checked: Aug 22 at 3:39AM
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.
Fully leased investment property across from Beacon Hospital (formerly Borgess), located on C-1 zoned land totaling over 5.5 acres. Two buildings are included, with the primary component a single-story medical office building offering dock access.
A second building on the site is a 1,536 SF two-story structure that has been converted to office use. Both buildings are served by a shared, ample parking lot, and the property includes additional land for expansion.
A second building on the site is a 1,536 SF two-story structure that has been converted to office use. Both buildings are served by a shared, ample parking lot, and the property includes additional land for expansion.
Key Highlights
- Fully leased investment property on over 5.5 acres of C‑1 zoned land across from Beacon Hospital (formerly Borgess)
- 5,388 SF single‑story medical office building with dock access
- Second building is 1,536 SF two‑story house converted to office space
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-story medical office with dock access, plus a converted two-story second building on shared parking and C-1 zoned land.
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 on over 5.5 acres of C‑1 zoned land across from Beacon Hospital (formerly Borgess); 5,388 SF single‑story medical office building with dock access; Second building is 1,536 SF two‑story house converted to office space
