Built-Out Medical Office
For Sale
$2,200,000
5161 B Drive S Battle Creek, Battle Creek, MI 49015
Move-in ready medical facility offers two similarly sized suites and generator support on 4.13 acres.
Property Size15,352 SF
Days on Market51
Property Features for 5161 B Drive S Battle Creek
General Information
Standard status
Active
Size
15,352 SF
Total Parking Spaces
40
Zoning
NC
Taxes and HOA fees
Annual Taxes
$48,958
Amenities
Yes
14
1
No
Other,Non-Applicable
4.13
40.0
Irregular
Paved
15352.0
Building Details
Building Size
15,352 SF
Year Built
2010
Buildings
1
Listing Agency:
(269) 399-5881
Listed By:
Brad Houser
(269) 399-5881
Source:
Remax-executive
Added: Jul 10
Changed: Aug 8
Last Checked: Aug 29 at 6:09AM
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 Brad Houser
Investment Insights
Based on property information with market context.
This property is a brick medical facility built out for healthcare use and presented in move-in condition. The interior is tastefully decorated and efficiently designed, with the building divided into two suites of approximately the same size. While currently configured as a state-of-the-art medical facility, the building could be renovated for other office users.
The exterior is in pristine condition and the property sits on 4.13 acres in a serene setting. Access is available from two major highways, supporting convenient arrivals for patients, staff, and visitors. A generator is on site.
Overall, the layout and existing build-out provide a functional base for an owner-occupant or investor seeking a ready-to-operate medical office environment, with the option to reconfigure for another office concept through renovation.
The exterior is in pristine condition and the property sits on 4.13 acres in a serene setting. Access is available from two major highways, supporting convenient arrivals for patients, staff, and visitors. A generator is on site.
Overall, the layout and existing build-out provide a functional base for an owner-occupant or investor seeking a ready-to-operate medical office environment, with the option to reconfigure for another office concept through renovation.
Key Highlights
- Move‑in ready medical facility built in 2010 with 15,352 SF total building area and 1‑story layout
- Divided into two suites of approximately the same size, providing flexible space for different tenants or uses
- Brick exterior on 4.13 acres with paved road surface and total parking for 40 vehicles
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
$169,123
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
7.69%
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%
$3,382,460
$3.4M
Cap Rate 7%
$2,416,043
$2.4M
Cap Rate 9%
$1,879,144
$1.9M
Market Conditions
NOI Build-Up for 15,352 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
$261.6K $17.04/SF
− Vacancy
−$36.1K −$2.35/SF
EGI
$225.5K $14.69/SF
− OpEx
−$56.4K −$3.67/SF
NOI
$169.1K $11.02/SF
Area
Calhoun County, MI
Vacancy
13.80%
Lease Rate
$17.04 /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%
$3,382,460
Cap Rate 7%
$2,416,043
Cap Rate 9%
$1,879,144
Alternative Uses
Best Use
Healthcare Medical
$182.11M
$159.35M – $212.46M
NOI $12,747,764 @ 7.0% cap · market cap 579.44%
Second Best
Office B
$2.42M
$2.11M – $2.82M
NOI $169,123 @ 7.0% cap · market cap 7.69%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
208
Businesses Nearby
Explore this area
Business Placement
Demographics for 49015, MI
28,008
Population
12,522
Households
2.2
Avg Household Size
40
Median Age
28%
College-Educated
91%
High-School Grad
27.2 sq mi
ZIP Area
1,030
Density / Sq Mi
$67,719
Median Household Income
$39,900
Median Earnings
$980
Median Rent
$171,000
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?
Medical center - Move-in ready medical facility offers two similarly sized suites and generator support on 4.13 acres.
Where is this medical center located?
The property is located at 5161 B Drive S Battle Creek Battle Creek, MI.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Move‑in ready medical facility built in 2010 with 15,352 SF total building area and 1‑story layout; Divided into two suites of approximately the same size, providing flexible space for different tenants or uses; Brick exterior on 4.13 acres with paved road surface and total parking for 40 vehicles
