Medical Office Building with Multiple
For Sale
$399,995
989 UNIVERSITY DR, Pontiac, MI 48342
Well-maintained building with eight flexible units and adjacent parking across from Dollar General.
Property Size9,045 SF
Lot Size1.34 Acres
Price / SF$44.22
Days on Market202
Property Features for 989 UNIVERSITY DR
General Information
Standard status
Active
Size
9,045 SF
Lot size
1.34 Acres
Property subtype
Industrial
Additional Details
Office Units
8
Amenities
3
Asphalt
30022311731176110
Building Details
Year Built
19
Listing Agency:
(810) 397-5343
Listed By:
Grand Blanc
(810) 397-5343
Source:
Xome
Added: Jan 30
Changed: Aug 14
Last Checked: Aug 20 at 4:22AM
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 Grand Blanc
Investment Insights
Based on property information with market context.
Well-maintained professional medical/office building offers eight individual units with a flexible layout that can support a range of office, medical, retail, and mixed-use applications. The sale includes two lots totaling 1.34 acres, providing additional paved parking capacity.
The property is located at 989 University Drive in Pontiac, MI 48342 on University Drive, with high visibility and access to nearby amenities. It is positioned directly across from Dollar General, and is described as being close to major highways with I-75 access at Opdyke Rd, along with Oakland University, GM facilities, and Amazon.
An adjacent lot on Kenilworth Ave. is included in the sale (PID 14-22-327-017), providing additional parking capacity of 22+ vehicles. The building is offered as an investment opportunity and also as an option for owner-occupants seeking stable tenancy in a proven commercial corridor.
The property is located at 989 University Drive in Pontiac, MI 48342 on University Drive, with high visibility and access to nearby amenities. It is positioned directly across from Dollar General, and is described as being close to major highways with I-75 access at Opdyke Rd, along with Oakland University, GM facilities, and Amazon.
An adjacent lot on Kenilworth Ave. is included in the sale (PID 14-22-327-017), providing additional parking capacity of 22+ vehicles. The building is offered as an investment opportunity and also as an option for owner-occupants seeking stable tenancy in a proven commercial corridor.
Key Highlights
- Well‑maintained professional medical/office building with eight individual units and flexible space for multiple business uses
- Two‑lot package totaling 1.34 acres, including an adjacent lot on Kenilworth Ave. included in the sale
- Additional parking capacity for 22+ vehicles associated with the included adjacent lot (PID 14‑22‑327‑017)
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
$31,137
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
7.78%
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%
$622,740
$622.7K
Cap Rate 7%
$444,814
$444.8K
Cap Rate 9%
$345,967
$346.0K
Market Conditions
NOI Build-Up for 9,045 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
$54.3K $6.00/SF
− Vacancy
−$12.8K −$1.41/SF
EGI
$41.5K $4.59/SF
− OpEx
−$10.4K −$1.15/SF
NOI
$31.1K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /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%
$622,740
Cap Rate 7%
$444,814
Cap Rate 9%
$345,967
Alternative Uses
Best Use
Healthcare Medical
$1.75M
$1.53M – $2.04M
NOI $122,401 @ 7.0% cap · market cap 30.60%
Second Best
Office B
$444.8K
$389.2K – $519.0K
NOI $31,137 @ 7.0% cap · market cap 7.78%
Theoretical Best
Specialty Retail
$1.95M
$1.71M – $2.28M
NOI $136,565 @ 7.0% cap · market cap 34.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Office units
Location Intelligence
Trade Area within ½ mile
202
Businesses Nearby
Explore this area
Business Placement
Demographics for 48342, MI
18,685
Population
7,559
Households
2.5
Avg Household Size
33
Median Age
10%
College-Educated
76%
High-School Grad
5.2 sq mi
ZIP Area
3,593
Density / Sq Mi
$33,750
Median Household Income
$29,970
Median Earnings
$851
Median Rent
$90,600
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Well-maintained building with eight flexible units and adjacent parking across from Dollar General.
Where is this office units located?
The property is located at 989 UNIVERSITY DR Pontiac, MI.
What is the asking price?
The asking price for this property is $399,995.
What are key features of this property?
This property features: Well‑maintained professional medical/office building with eight individual units and flexible space for multiple business uses; Two‑lot package totaling 1.34 acres, including an adjacent lot on Kenilworth Ave. included in the sale; Additional parking capacity for 22+ vehicles associated with the included adjacent lot (PID 14‑22‑327‑017)
