Planned Development Commercial
For Sale
$350,000
2500 Alter Road, Detroit, MI 48215
COMMERCIAL - Detroit, MI
Property Size1,420 SF
Lot Size0.83 Acres
Price / SF$246.48
Days on Market377
Property Features for 2500 Alter Road
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
East End Manor Sub
Standard status
Active
APN
21062762.
Size
1,420 SF
Lot size
0.83 Acres
Utilities
Water source
Public
Building Details
Year built
1924
Listing Agency:
Sine & Monaghan LLC
(313) 884-7000
Listed By:
Michael DeFauw · License #6501387091
(313) 820-5428
Added: Aug 15, 2025
Changed: Aug 4
Last Checked: Aug 26 at 10:06AM
MLS# 50185410
Copyright © 2026 Multiple Listing Service MiRealSource. 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.
This 0.83-acre commercial land offering comprises seven vacant lots, including six contiguous parcels and one separate lot. The combined site provides a 1,420-square-foot property component and an existing brick structure built in 1924. The structure includes plumbing and electrical utilities, while public water is available. PD - Planned Development Development zoning is in place.
The property is located at 2500 Alter Road in Detroit, bordering Grosse Pointe Park and its shopping, dining, schools, and waterfront recreation. The contiguous acreage can support a unified site plan, while the separate parcel adds flexibility for a distinct site element. Utilities and the existing improvements provide a factual starting point for evaluating future development concepts.
The property is located at 2500 Alter Road in Detroit, bordering Grosse Pointe Park and its shopping, dining, schools, and waterfront recreation. The contiguous acreage can support a unified site plan, while the separate parcel adds flexibility for a distinct site element. Utilities and the existing improvements provide a factual starting point for evaluating future development concepts.
Key Highlights
- 0.83‑acre commercial land offering across seven vacant lots
- Six contiguous parcels plus one additional separate lot
- Existing 1,420‑square‑foot brick structure built in 1924
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
$17,490
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
5.00%
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%
$349,800
$349.8K
Cap Rate 7%
$249,857
$249.9K
Cap Rate 9%
$194,333
$194.3K
Market Conditions
NOI Build-Up for 1,420 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
$26.4K $18.60/SF
− Vacancy
−$1.4K −$1.00/SF
EGI
$25.0K $17.60/SF
− OpEx
−$7.5K −$5.28/SF
NOI
$17.5K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$349,800
Cap Rate 7%
$249,857
Cap Rate 9%
$194,333
Alternative Uses
Best Use
Retail
$249.9K
$218.6K – $291.5K
NOI $17,490 @ 7.0% cap · market cap 5.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$313.3K
$274.1K – $365.5K
NOI $21,928 @ 7.0% cap · market cap 6.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
784
Businesses Nearby
48k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 49%
Groceries 35%
Apparel 11%
Dining 5%
Aldi
Groceries
16,646 visits/mo
0.4 miles
Marathon
Shops & Services
11,021 visits/mo
0.5 miles
Family Dollar
Shops & Services
6,585 visits/mo
0.4 miles
Foot Locker
Apparel
5,382 visits/mo
0.4 miles
Huntington Bank
Shops & Services
4,609 visits/mo
0.4 miles
Demographics for 48215, MI
10,520
Population
6,044
Households
1.7
Avg Household Size
41
Median Age
19%
College-Educated
85%
High-School Grad
3.9 sq mi
ZIP Area
2,697
Density / Sq Mi
$33,741
Median Household Income
$36,728
Median Earnings
$897
Median Rent
$105,400
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Seven-lot site with an existing brick structure and available utility connections.
Where is this commercial land located?
The property is located at 2500 Alter Road Detroit, MI.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 0.83‑acre commercial land offering across seven vacant lots; Six contiguous parcels plus one additional separate lot; Existing 1,420‑square‑foot brick structure built in 1924
