560 Fifth St. NW

Office for Sale
Catylist Listing ID: 30726051
Property Subtypes: Mixed Use, Flex Space, Office Building
Building Size (RSF): 108,100 SF
Gross Land Area: 4.34 Acres
Sale Price: $7,310,000
Unit Price: $67.62 PSF
Ceiling: 16 ft.
Property Use Type: Investment
Class of Space: Class B
Usable Size (USF): 108,100 SF
Core Factor: 15%
Sale Terms: Cash to Seller
Cap Rate: 8.02%
Average Occupancy Rate: 95
Last Updated: 7/29/2021

Overview / Comments

This beautifully constructed 1879 structure gives the property a rustic feel while the newly renovated common areas provide a clean, modern finish. In fact, the aesthetic appeal speaks to the reason that four out of the sixteen tenants currently occupying office warehouse space happen to be architectural firms. A short distance northwest of the Grand Rapids city center, this four-story, multi-tenant building provides a total of 108,100-square-feet of space, with 46,108-squarefeet of office space and 61,992-square-feet of warehouse space which features a clear height of 16-feet. 560 Fifth St. provides tenants and their customers with an ample amount of free on site and adjacent parking which is an especially attractive feature in this neighborhood. Other features include a new roof in 2019 and fire alarm system in 2018 and 2019.

The property has a diverse mix of tenants ranging from industries such as technology and media to furniture and logistics. The building has a current occupancy of 90.04% with two pending RFP’s bringing the property to a 98.03% occupancy. During the Coronavirus pandemic, tenants showed no sign of distress with seven of them renewing and two new tenants signing. Tenants’ attraction to the property is likely due to its prime location and size being a low-rise building on the outskirts of downtown. Over the next three years, there is no more than 10.21 percent lease rollover by square footage in any single year. Additionally, nine of the office tenants’ leases are based on useable square footage while the other seven are leased on rentable square footage, with no drop off in rental rate which provides an upside, if and when those tenants are replaced. Out of the sixteen tenants that occupy office or warehouse space, about 94% of them have annual rent escalations of 2.0%, 2.5%, and 3.0%.

The Grand Rapids NW Side has grown to be a creative neighborhood with a number of restaurants, breweries, brand new apartment buildings, and entertainment options. The convenient distance to grocery being just four blocks away is only one benefit of the location of this property. Furthermore, tenants and customers have direct access to the bus route that takes them throughout the Grand Rapids metropolitan area.

The property is professionally managed by Rockford Property Management which prefers to remain in that role after the sale.

An entity related to Seller also owns the adjacent property at 665 Seward and prefers to sell both 560 Fifth and 665 Seward as a package but will certainly consider separate sales.

Please contact Michael Cagen for any questions, inquiries, and additional information.​

Additional Details

Nearest MSA: Grand Rapids-Kentwood
County: Kent
Submarket/Township: Northwest Business District
Taxing Authority: City of Grand Rapids
Tax ID/APN: 41-13-24-330-024, 41-13-24-333-001, 41-13-24-333-002, 41-13-24-333-003, 41-13-24-333-004, 41-13-24-333-007, 41-13-24-333-024
Zoning: COMMERCIAL
Property Located Between: On Seward, between 4th and 5th Street.
Property Visibility: Excellent
Highway Access: Very, very close by.
Total Number of Buildings: 1
Number of Stories: 4
Typical SF / Floor: 11,947 SF
Year Built: 1879
Year Renovated: 2015
Roof Type: Flat
Construction/Siding: Brick
Parking Type: Surface
Total Parking Spaces: 278
Passenger Elevators: 1
Freight Elevators: 1
Sprinklers: Wet
Heat Type: Natural Gas
Heat Source: Heat Pump
Air Conditioning: Engineered System
Internet Access: Cable
Water Service: Municipal
Sewer Type: Municipal
Easements: Other
Easements Description: of record.
Land Ownership: Mostly fee simple
Legal Description: Lengthy legal in listing office

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 20,766 137,860 265,293
Median Age: 28.6 31.73 33.29
Households: 8,348 52,548 101,943

Contact

Photograph of Listing Agent

Michael A. Cagen

Marcus & Millichap CARWM Member
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