Turnkey Investment Opportunity with Development
For Sale
$317,000
755 Portage St, Kalamazoo, MI 49001
Three-unit property with income and development potential in Kalamazoo, MI.
Property Size4,800 SF
Price / SF$66.04
Days on Market103
Property Features for 755 Portage St
General Information
Standard status
Active
Size
4,800 SF
Property subtype
Commercial
Building Details
Year Built
1954
Listing Agency:
Keller Williams GR East
(616) 920-2098
Listed By:
Christopher M Bruce · License #6506047703
(616) 920-2098
Source:
Elliman
Added: May 21
Changed: Jul 10
Last Checked: Aug 30 at 6:02PM
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 Keller Williams GR East
Investment Insights
Based on property information with market context.
This 4,800 sq ft property presents a turnkey investment opportunity with additional development potential. It features strong rental income, off-street parking, and includes two additional lots in the sale. The property comprises an 800 sq ft front apartment, a 2,000 sq ft rear unit, and an additional income-producing unit. Recent updates include a new HVAC system, a new water heater, and 3-inch spray foam insulation for improved efficiency. The upstairs unit has a rental potential of $1,775 per month, while the smaller unit is currently rented at $875 per month. The seller currently covers water, sewer, and garbage expenses. Electric and gas are separately metered for the downstairs unit, which also has separate water metering. This property offers a great opportunity for investors seeking cash flow and long-term upside. The location is very bikeable with a bike score of 71 and very walkable with a walk score of 81.
Key Highlights
- Turnkey 3‑unit property with strong rental income.
- Includes two additional lots, offering development potential.
- New HVAC system, new water heater, and spray foam insulation for improved efficiency.**
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
$28,229
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
8.91%
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%
$564,580
$564.6K
Cap Rate 7%
$403,271
$403.3K
Cap Rate 9%
$313,656
$313.7K
Market Conditions
NOI Build-Up for 4,800 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
$43.2K $9.00/SF
− Vacancy
−$2.9K −$0.60/SF
EGI
$40.3K $8.40/SF
− OpEx
−$12.1K −$2.52/SF
NOI
$28.2K $5.88/SF
Area
Kalamazoo County, MI
Vacancy
6.65%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$564,580
Cap Rate 7%
$403,271
Cap Rate 9%
$313,656
Alternative Uses
Best Use
Multifamily LT 5
$403.3K
$352.9K – $470.5K
NOI $28,229 @ 7.0% cap · market cap 8.91%
Second Best
Apartment 5plus
$370.4K
$324.1K – $432.1K
NOI $25,927 @ 7.0% cap · market cap 8.18%
Theoretical Best
Warehouse
$1.26M
$1.10M – $1.47M
NOI $87,924 @ 7.0% cap · market cap 27.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,816
Businesses Nearby
Explore this area
Business Placement
Demographics for 49001, MI
21,730
Population
9,670
Households
2.2
Avg Household Size
34
Median Age
30%
College-Educated
89%
High-School Grad
7.7 sq mi
ZIP Area
2,822
Density / Sq Mi
$52,327
Median Household Income
$35,447
Median Earnings
$1,055
Median Rent
$139,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Three-unit property with income and development potential in Kalamazoo, MI.
Where is this multifamily property located?
The property is located at 755 Portage St Kalamazoo, MI.
What is the asking price?
The asking price for this property is $317,000.
What are key features of this property?
This property features: Turnkey 3‑unit property with strong rental income.; Includes two additional lots, offering development potential.; New HVAC system, new water heater, and spray foam insulation for improved efficiency.**
