Eight-Unit Office
For Sale
$399,995
989 UNIVERSITY DR, Pontiac, MI 48342
Professional medical and office property with flexible suites, asphalt parking, and access to University Drive’s commercial corridor.
Property Size9,045 SF
Lot Size1.34 Acres
Price / SF$44.22
Days on Market218
Property Features for 989 UNIVERSITY DR
General Information
Standard status
Active
Size
9,045 SF
Lot size
1.34 Acres
Property subtype
Industrial
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
8
Amenities
3
Asphalt
30022311731176110
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
(810) 695-4111
Listed By:
Grand Blanc
(810) 397-5343
Source:
Xome
Added: Feb 4
Changed: Sep 9
Last Checked: Sep 10 at 5:21AM
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.
This 9,045-square-foot professional office property contains eight individual units arranged in a flexible layout. The building is identified for medical, dental, office, retail, senior care or services, daycare, and mixed-use applications. Asphalt parking serves the property, with an adjacent lot adding capacity for 22+ vehicles. The sale includes two lots totaling 1.34 acres.
Located at 989 University Drive in Pontiac, the property sits directly across from Dollar General and near Oakland University, GM facilities, Amazon, and access to I-75 at Opdyke Road. The University Drive setting provides direct exposure to an established commercial corridor, while the included Kenilworth Avenue parcel expands the overall site and parking area.
Located at 989 University Drive in Pontiac, the property sits directly across from Dollar General and near Oakland University, GM facilities, Amazon, and access to I-75 at Opdyke Road. The University Drive setting provides direct exposure to an established commercial corridor, while the included Kenilworth Avenue parcel expands the overall site and parking area.
Key Highlights
- 9,045 SF professional medical/office building with eight individual units
- Two lots totaling 1.34 acres included in the sale
- Adjacent Kenilworth Ave. lot adds parking capacity for 22+ vehicles
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
Retail
$1.39M
$1.22M – $1.62M
NOI $97,328 @ 7.0% cap · market cap 24.33%
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
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Current Use
Lease Details
8
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office units - Professional medical and office property with flexible suites, asphalt parking, and access to University Drive’s commercial corridor.
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: 9,045 SF professional medical/office building with eight individual units; Two lots totaling 1.34 acres included in the sale; Adjacent Kenilworth Ave. lot adds parking capacity for 22+ vehicles
