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    1040 Towerline Rd Saginaw, MI 48601

    Sponsored
    For Sale
    $1,103,200

    14,519 SF Net Lease Office, 9.5% Cap Rate

    Property size:
    14,519 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    402
    This exceptional investment opportunity presents a 14,519-square-foot Class C office building situated on a 3-acre lot in Saginaw, Michigan. The property is currently 100% occupied under a single-tenant, net lease with the Saginaw County Mental Health Authority (SCCMHA), a stable, local governmental entity employing over 310 staff and contracting with more than 150 organizations. The lease, originally commenced on May 29, 2001, has recently been renewed, extending the term beyond the original expiration date of May 30, 2024, with two one-year options remaining. The building, constructed in 2001, has undergone recent interior and exterior renovations, including landscaping, parking lot improvements, and alarm system upgrades, demonstrating the tenant's long-term commitment. The property boasts a strong 9.50% cap rate and a net operating income (NOI) of $104,808, with an asking price of $1,103,200 ($75.98/SF). Conveniently located near I-75, this property benefits from excellent access to a population exceeding 51,000 within a five-mile radius. The double net lease structure minimizes landlord responsibilities, making this a low-maintenance, high-return investment. The property's location within the Saginaw, Midland, and Bay City metropolitan area, and the tenant's substantial local presence, contribute to its exceptional stability and long-term potential.

    Property Features for 1040 Towerline Rd

    General Information

    Property type
    Medical offices
    Square Feet
    14,519 SF
    Class
    C
    Lot Size
    130,680 SF

    Building Details

    Year Built
    2001
    Buildings
    1

    HighLights

    • Net‑leased office investment totaling 14,519 square feet on a 3‑acre site.
    • Long‑term tenant with a recent lease renewal, occupying the property for over two decades.
    • Tenant is the Saginaw County Community Mental Health Authority (SCCMHA), a stable, local government entity with over 310 employees and extensive community ties.
    • Strategically located in Saginaw, the largest municipality in the Saginaw‑Midland‑Bay City MSA.
    • Tenant's recent lease extension and interior renovations demonstrate strong commitment to the property.
    • Double‑net lease with recent interior and exterior improvements including landscaping, parking lot maintenance, and a new alarm system.
    Property Profile Location Intelligence

    Current Use by Public Records

    Transportations Services Transportation Service Crisis Intervention Services Mental Health Service Dr. G R. ... Doctor Lynn C. White, ... Doctor

    Suggested Use

    Restaurant Spa & Massage Building Supply Auto Repair Shop Wholesale Shop Gym & Fitness Pharmacy Hotel & Motel Skin Care Clinic Kitchen & Bath

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Saginaw
    County
    Saginaw
    State
    Michigan
    Longitude
    -83.87681402
    Latitude
    43.42207636

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    FAQs

    What type of property is this?
    Medical office - 14,519 SF Net Lease Office, 9.5% Cap Rate
    Where is this medical office located?
    The property is located at 1040 Towerline Rd Saginaw, MI.
    What is the asking price?
    The asking price for this property is $1,103,200.
    What are key features of this property?
    This property features: Net-leased office investment totaling 14,519 square feet on a 3-acre site.; Long-term tenant with a recent lease renewal, occupying the property for over two decades.; Tenant is the Saginaw County Community Mental Health Authority (SCCMHA), a stable, local government entity with over 310 employees and extensive community ties.
    Request Owner's contact information
    1040 Towerline Rd Saginaw, MI 48601
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    Saginaw, MI 48601
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    1040 Towerline Rd Saginaw, MI 48601
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