Birchwood Apartments With Wooded
For Sale
$2,025,000
8150 E Michigan Ave, Galesburg, MI 49053
Two garden-style buildings offer renovated apartments, laundry facilities, off-street parking, and tenant-paid gas and electric.
Property Size17,500 SF
Days on Market40
Property Features for 8150 E Michigan Ave
General Information
Standard status
Active
Size
17,500 SF
Property subtype
Multifamily
Occupancy
95%
Amenities
Attractive Unit Mix — Six One-Bedroom and 16 Two-Bedroom Units Across Two Well-Maintained Buildings
Recent Renovations — Enhanced Long-Term Appeal with Reduced Near-Term Execution Risk
Diverse Employment Base — Anchored by Bronson Healthcare, Stryker Corporation, Pfizer/Zoetis, and Western Michigan University
Building Details
Building Size
17,500 SF
Units
22
Listing Agency:
Marcus & Millichap - Detroit
(312) 624-7074
Listed By:
Yianni Mouflouzelis · License #License(s): IL: 475.205207, MI: 6501455825, IA: S73371000
(312) 624-7074
Source:
Marcusmillichap
Added: Jul 22
Changed: Aug 30
Last Checked: Aug 30 at 12:40PM
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 Marcus & Millichap - Detroit
Investment Insights
Based on property information with market context.
Birchwood Apartments is a 22-unit apartment property comprising two garden-style buildings on a 10-acre wooded parcel. Constructed in 1974, the community includes six one-bedroom, one-bathroom units and 16 two-bedroom, one-bathroom units. Recent interior renovations have been completed, while on-site laundry, off-street parking, and outdoor space serve the residents. Tenants are responsible for gas and electric utilities.
The property is located at 8150 E Michigan Ave in Galesburg, Michigan, approximately 10 miles from Kalamazoo and with immediate access to Interstate 94. The surrounding regional context includes Comstock Public Schools, Kalamazoo/Battle Creek International Airport, Chipman Preserve, and employment sectors including healthcare, advanced manufacturing, life sciences, and higher education.
The property is located at 8150 E Michigan Ave in Galesburg, Michigan, approximately 10 miles from Kalamazoo and with immediate access to Interstate 94. The surrounding regional context includes Comstock Public Schools, Kalamazoo/Battle Creek International Airport, Chipman Preserve, and employment sectors including healthcare, advanced manufacturing, life sciences, and higher education.
Key Highlights
- 22‑unit apartment community in two garden‑style buildings
- 10‑acre wooded parcel with substantial outdoor space
- Unit mix includes six one‑bedroom/one‑bathroom and 16 two‑bedroom/one‑bathroom units
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
$94,525
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
4.67%
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%
$1,890,500
$1.9M
Cap Rate 7%
$1,350,357
$1.4M
Cap Rate 9%
$1,050,278
$1.1M
Market Conditions
NOI Build-Up for 17,500 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
$184.8K $10.56/SF
− Vacancy
−$12.9K −$0.74/SF
EGI
$171.9K $9.82/SF
− OpEx
−$77.3K −$4.42/SF
NOI
$94.5K $5.40/SF
Area
Kalamazoo County, MI
Vacancy
7.00%
Lease Rate
$10.56 /SF/Yr
Expense Ratio
45.00%
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%
$1,890,500
Cap Rate 7%
$1,350,357
Cap Rate 9%
$1,050,278
Alternative Uses
Best Use
Apartment 5plus
$1.35M
$1.18M – $1.58M
NOI $94,525 @ 7.0% cap · market cap 4.67%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$4.58M
$4.01M – $5.34M
NOI $320,557 @ 7.0% cap · market cap 15.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Explore this area
Business Placement
Demographics for 49053, MI
7,371
Population
2,919
Households
2.5
Avg Household Size
39
Median Age
31%
College-Educated
95%
High-School Grad
24.4 sq mi
ZIP Area
302
Density / Sq Mi
$80,074
Median Household Income
$47,870
Median Earnings
$970
Median Rent
$222,800
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?
Apartment building - Two garden-style buildings offer renovated apartments, laundry facilities, off-street parking, and tenant-paid gas and electric.
Where is this apartment building located?
The property is located at 8150 E Michigan Ave Galesburg, MI.
What is the asking price?
The asking price for this property is $2,025,000.
What are key features of this property?
This property features: 22‑unit apartment community in two garden‑style buildings; 10‑acre wooded parcel with substantial outdoor space; Unit mix includes six one‑bedroom/one‑bathroom and 16 two‑bedroom/one‑bathroom units
