Five-Unit Office
For Sale
$899,900
5120 Lovers Ln, Portage, MI 49002
Fully leased office property with separate condominium units, varied professional tenants, and B-2 zoning.
Property Size8,400 SF
Price / SF$107.13
Days on Market52
Property Features for 5120 Lovers Ln
General Information
Standard status
Active
Size
8,400 SF
Occupancy
100%
Additional Details
Office Units
5
Building Details
Year Built
1985
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HomeServices MI
(269) 488-3888
Listed By:
Ryan Rider · License #6501273398
Source:
Katie-k
Added: Jul 10
Changed: Aug 29
Last Checked: Aug 25 at 4:57AM
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 1985, this office property contains 8,400 square feet across five separate condominium units. The building is fully leased to a mix of professional occupants that includes two dental practices, an accounting office, a counseling practice, and a massage business. Several leases have shorter remaining terms, creating the possibility of future owner occupancy within part of the property.
The property is situated in a wooded setting overlooking a creek and trail in North Portage. B-2 zoning supports its office use, while the unitized layout provides distinct spaces within the building. The property reports a cap rate of over 9.5%.
The property is situated in a wooded setting overlooking a creek and trail in North Portage. B-2 zoning supports its office use, while the unitized layout provides distinct spaces within the building. The property reports a cap rate of over 9.5%.
Key Highlights
- 8,400‑square‑foot office property built in 1985
- Five separate condominium units within the building
- Fully leased to two dental offices, an accountant, counseling, and massage tenants
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
$75,524
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
8.39%
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%
$1,510,480
$1.5M
Cap Rate 7%
$1,078,914
$1.1M
Cap Rate 9%
$839,156
$839.2K
Market Conditions
NOI Build-Up for 8,400 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
$136.1K $16.20/SF
− Vacancy
−$10.2K −$1.22/SF
EGI
$125.9K $14.99/SF
− OpEx
−$50.3K −$5.99/SF
NOI
$75.5K $8.99/SF
Area
Kalamazoo County, MI
Vacancy
7.50%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
40.00%
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%
$1,510,480
Cap Rate 7%
$1,078,914
Cap Rate 9%
$839,156
Alternative Uses
Best Use
Office B
$1.20M
$1.05M – $1.40M
NOI $84,188 @ 7.0% cap · market cap 9.36%
Second Best
Healthcare Medical
$1.08M
$944.1K – $1.26M
NOI $75,524 @ 7.0% cap · market cap 8.39%
Theoretical Best
Warehouse
$2.20M
$1.92M – $2.56M
NOI $153,868 @ 7.0% cap · market cap 17.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Office units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
253
Businesses Nearby
Explore this area
Business Placement
Demographics for 49002, MI
19,553
Population
8,975
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
96%
High-School Grad
17.3 sq mi
ZIP Area
1,130
Density / Sq Mi
$71,621
Median Household Income
$45,938
Median Earnings
$910
Median Rent
$223,000
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?
Office building - Fully leased office property with separate condominium units, varied professional tenants, and B-2 zoning.
Where is this office building located?
The property is located at 5120 Lovers Ln Portage, MI.
What is the asking price?
The asking price for this property is $899,900.
What are key features of this property?
This property features: 8,400‑square‑foot office property built in 1985; Five separate condominium units within the building; Fully leased to two dental offices, an accountant, counseling, and massage tenants
