2845 Capital Ave SW

Investment Overview

NAI Mid-Michigan is pleased to present the opportunity to acquire 2845 Capital Ave SW, a 35,858-square-foot, three-story multi-tenant medical office building in Battle Creek, Michigan. The Property is 82.75% leased to a roster of healthcare tenants anchored by two institutional health systems, and offers a clearly defined value-add path through the lease-up of 6,184 square feet of vacancy.

Investment Highlights

• Institutional healthcare anchors. Bronson Battle Creek Hospital (37.95% of GLA) and Renal Care Group Southwest Michigan (25.78% of GLA, leased through
• August 2035) together occupy 63.7% of the building, providing a durable, credit-quality income base.
• Attractive going-in yield. In-place NOI of $272,164 represents a 10.0% going-in capitalization rate at the offering guidance, well above pricing for stabilized single-tenant medical product.
• Defined value-add upside. Lease-up of the three vacant suites (17.25% of GLA) grows NOI to a stabilized $377,293, an increase of approximately 39%, and lifts value to roughly $3,970,000.
• Growing, contractual income. All five in-place tenants are on gross leases with annual escalations of 1.5% to 3.0%, producing a compounding base income stream.
• Dual health-system trade area. The Property sits at the intersection of Battle Creek’s two major systems, Bronson Health and Ascension Borgess, driving sustained medical tenant demand.
• Below-replacement-cost basis. Offering guidance of approximately $76/SF (as-is) provides a resilient secondary-market entry point relative to Grand Rapids and Detroit.