Equipped Conventional
For Sale
$150,000
1220 S University Avenue, Ann Arbor, MI 48104
COMMERCIAL - Ann Arbor, MI
Property Size2,400 SF
Lot Size0.25 Acres
Price / SF$62.50
Days on Market90
Property Features for 1220 S University Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Interior features
Broadband
Elementary school district
Ann Arbor
Middle school district
Ann Arbor
High school district
Ann Arbor
Standard status
Active
APN
09-90-00-081-505
Size
2,400 SF
Lot size
0.25 Acres
Taxes and HOA fees
Tax Description
--
Utilities
Utilities
Cable Available
Cooling system
Central Air
Building Details
Year built
1986
Number of units
1
Building materials
Brick
Listing Agency:
Berkshire Hathaway Snyder & Co · Berkshire Hathaway HomeServices
(734) 747-7500
Listed By:
Katie Choi
(734) 896-0080
Added: May 26
Changed: Aug 13
Last Checked: Aug 23 at 7:06PM
MLS# 26024722
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Business-only restaurant sale at 1220 S University Avenue includes kitchen equipment, furniture, and fixtures. The 2,400-square-foot space has a spacious kitchen, two bathrooms, central air, and a flexible interior arrangement suitable for restaurant or food-service operations. The building was constructed in 1986 with brick construction and includes broadband and cable availability.
The property occupies 0.25 acres along S University Avenue in Ann Arbor, near the University of Michigan campus. The surrounding area is characterized by pedestrian activity, student presence, and proximity to downtown amenities. The offering provides an established restaurant setting with existing physical components for a new owner or operator.
The property occupies 0.25 acres along S University Avenue in Ann Arbor, near the University of Michigan campus. The surrounding area is characterized by pedestrian activity, student presence, and proximity to downtown amenities. The offering provides an established restaurant setting with existing physical components for a new owner or operator.
Key Highlights
- Business‑only sale includes kitchen equipment, furniture, and fixtures
- 2,400 square feet with spacious kitchen and flexible interior arrangement
- Located at 1220 S University Avenue near the University of Michigan campus
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
$12,257
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
8.17%
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%
$245,140
$245.1K
Cap Rate 7%
$175,100
$175.1K
Cap Rate 9%
$136,189
$136.2K
Market Conditions
NOI Build-Up for 2,400 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
$18.4K $7.68/SF
− Vacancy
−$922 −$0.38/SF
EGI
$17.5K $7.30/SF
− OpEx
−$5.3K −$2.19/SF
NOI
$12.3K $5.11/SF
Area
Ann Arbor, MI
Vacancy
5.00%
Lease Rate
$7.68 /SF/Yr
Expense Ratio
30.00%
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%
$245,140
Cap Rate 7%
$175,100
Cap Rate 9%
$136,189
Alternative Uses
Best Use
Specialty Retail
$452.0K
$395.5K – $527.3K
NOI $31,639 @ 7.0% cap · market cap 21.09%
Second Best
Industrial
$175.1K
$153.2K – $204.3K
NOI $12,257 @ 7.0% cap · market cap 8.17%
Theoretical Best
Office A
$530.1K
$463.8K – $618.4K
NOI $37,104 @ 7.0% cap · market cap 24.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,444
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Business-only sale includes kitchen equipment, furniture, and fixtures.
Where is this conventional restaurant located?
The property is located at 1220 S University Avenue Ann Arbor, MI.
What is the asking price?
The asking price for this property is $150,000.
What are key features of this property?
This property features: Business‑only sale includes kitchen equipment, furniture, and fixtures; 2,400 square feet with spacious kitchen and flexible interior arrangement; Located at 1220 S University Avenue near the University of Michigan campus
