LEED Platinum Flex
For Sale
$14,041,060
Pending
601 First St NW, Grand Rapids, MI 49504
Renovated industrial headquarters combines collaborative offices, high-bay storage, loading access, and sustainable building systems.
Property Size72,069 SF
Days on Market223
Property Features for 601 First St NW
General Information
Standard status
Pending
Size
72,069 SF
Property subtype
Investment
Zoning
C-2 Community Commercial Zone
Additional Details
Public Transit
Yes
Amenities
raised access flooring
backup generator
advanced post-Covid air purification system
secure airlock entry
central courtyard
executive boardroom and conference rooms
indoor and on-site parking
rooftop deck
development sites
energy-efficient lighting and heating systems
large community room
open and collaborative office space
indoor and outdoor gathering spaces
paint hoods
millwork ventilation capabilities
Power
Water
Sewer
Natural Gas
Building Details
Tenancy
Single
Listing Agency:
NorthStar Commercial LLC
(616) 717-1488
Listed By:
Tony VanGessel
(616) 717-1488
Source:
Carwm.resimplifi
Added: Jan 19
Changed: Aug 29
Last Checked: Aug 30 at 1:03PM
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 NorthStar Commercial LLC
Investment Insights
Based on property information with market context.
This renovated industrial facility at 601 First St NW combines a headquarters-quality office environment with substantial operational space. The 72,069-square-foot building includes open collaborative work areas, conference and meeting rooms, a community room, indoor and outdoor gathering areas, high-bay storage, multiple truck docks, grade doors, paint hoods, and millwork ventilation capabilities. Additional features include raised access flooring, a backup generator, secure airlock entry, a central courtyard, rooftop deck, energy-efficient lighting and heating systems, and advanced air purification. The property is LEED Platinum certified.
The facility is positioned on Grand Rapids’ West Side, within walking distance of restaurants, retail, Bridge Street Market, and the future Amway Soccer Stadium. It is one block from a City bus line stop and includes indoor and onsite parking. The property is zoned C-2 Community Commercial Zone and is held under a nine-year lease by the company that designed and built it for headquarters use.
The facility is positioned on Grand Rapids’ West Side, within walking distance of restaurants, retail, Bridge Street Market, and the future Amway Soccer Stadium. It is one block from a City bus line stop and includes indoor and onsite parking. The property is zoned C-2 Community Commercial Zone and is held under a nine-year lease by the company that designed and built it for headquarters use.
Key Highlights
- LEED Platinum‑certified renovation of a former industrial facility
- 72,069‑square‑foot building with office, community, meeting, and gathering areas
- High‑bay storage includes multiple truck docks and grade doors
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
$880,287
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
6.27%
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%
$17,605,740
$17.6M
Cap Rate 7%
$12,575,529
$12.6M
Cap Rate 9%
$9,780,967
$9.8M
Market Conditions
NOI Build-Up for 72,069 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
$1.08M $15.00/SF
− Vacancy
−$45.4K −$0.63/SF
EGI
$1.04M $14.37/SF
− OpEx
−$155.3K −$2.16/SF
NOI
$880.3K $12.21/SF
Area
Grand Rapids, MI
Vacancy
4.20%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
15.00%
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%
$17,605,740
Cap Rate 7%
$12,575,529
Cap Rate 9%
$9,780,967
Alternative Uses
Best Use
Warehouse
$12.58M
$11.00M – $14.67M
NOI $880,287 @ 7.0% cap · market cap 6.27%
Second Best
Flex RnD
$10.95M
$9.58M – $12.77M
NOI $766,194 @ 7.0% cap · market cap 5.46%
Theoretical Best
Specialty Retail
$16.73M
$14.63M – $19.51M
NOI $1,170,761 @ 7.0% cap · market cap 8.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,998
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49504, MI
41,249
Population
18,830
Households
2.2
Avg Household Size
33
Median Age
39%
College-Educated
90%
High-School Grad
11.1 sq mi
ZIP Area
3,716
Density / Sq Mi
$68,326
Median Household Income
$41,138
Median Earnings
$1,145
Median Rent
$222,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- 5knives catering — 678 Front Ave NW, Grand Rapids, MI 49504
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Frequently Asked Questions
What type of property is this?
Flex space - Renovated industrial headquarters combines collaborative offices, high-bay storage, loading access, and sustainable building systems.
Where is this flex space located?
The property is located at 601 First St NW Grand Rapids, MI.
What is the asking price?
The asking price for this property is $14,041,060.
What are key features of this property?
This property features: LEED Platinum‑certified renovation of a former industrial facility; 72,069‑square‑foot building with office, community, meeting, and gathering areas; High‑bay storage includes multiple truck docks and grade doors
