Building Details

Year Built 2000

Buildings 1

Stories 3

Tenancy Multi

Listing Agency: NAI Wisinski of West Michigan

Listed By: Jason Makowski, SIOR · License #MI Show Phone

Source: Crexi

Added: Jun 25, 2024 Changed: Sep 12 Last Checked: Sep 13 at 5:05AM

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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 NAI Wisinski of West Michigan

Investment Insights

Based on property information with market context.

This three-story office building is located in a private setting behind the Alpine shopping corridor, with accessibility to the Alpine and I-96 interchange. Each floor has approximately 10,000 sq ft. The garden level is leased to Trinity Health, and the main floor is leased to Centria Healthcare. The upper floor, available for a new tenant or owner, features a mix of open space, private offices, a classroom, and a breakroom. The property size is 32403 sq ft. There is room on-site to expand the building or add a second building adjacent to the existing one. The existing parking lot is large enough to support two buildings.

Key Highlights

• Upper floor available with a mix of open space, private offices, classroom, and breakroom.
• Excellent accessibility to the Alpine and I‑96 interchange.
• Existing large parking lot can support two buildings.

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

$323,764

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

5.58%

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%

$6,475,280 $6.5M

Cap Rate 7%

$4,625,200 $4.6M

Cap Rate 9%

$3,597,378 $3.6M

Market Conditions

NOI Build-Up for 32,403 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

$474.4K $14.64/SF

− Vacancy

−$42.7K −$1.32/SF

EGI

$431.7K $13.32/SF

− OpEx

−$107.9K −$3.33/SF

NOI

$323.8K $9.99/SF

Area

Kent County, MI

Vacancy

9.00%

Lease Rate

$14.64 /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%

$6,475,280

Cap Rate 7%

$4,625,200

Cap Rate 9%

$3,597,378

Alternative Uses

Best Use

Office B

$4.63M

$4.05M – $5.40M (±1% cap)

NOI $323,764 @ 7.0% cap · market cap 5.58%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$5.80M

$5.07M – $6.76M (±1% cap)

NOI $405,683 @ 7.0% cap · market cap 6.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Office buildings

Suggested Use

Top Pick Real Estate Agency Big Box & Wholesale Store Electrical Service Parking Lot & Garage Grocery & Convenience Store Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

147

Businesses Nearby

Explore this area Business Placement

Demographics for 49544, MI

9,514

Population

4,195

Households

2.3

Avg Household Size

35

Median Age

34%

College-Educated

94%

High-School Grad

19.9 sq mi

ZIP Area

478

Density / Sq Mi

$69,706

Median Household Income

$43,785

Median Earnings

$1,119

Median Rent

$247,500

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this office buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office building - Three-story office building with leasing income and expansion potential.

Where is this office building located?

The property is located at 318 River Ridge Dr NW Walker, MI.

What is the asking price?

The asking price for this property is $5,800,000.

What are key features of this property?

This property features: Upper floor available with a mix of open space, private offices, classroom, and breakroom.; Excellent accessibility to the Alpine and I‑96 interchange.; Existing large parking lot can support two buildings.