Muffler Shop Prime
For Sale
$600,000
10010 10022 and 10026 Puritan St, Detroit, MI 48238
Updated muffler shop in prime location with lease in place.
Property Size6,000 SF
Price / SF$94.61
Days on Market122
Property Features for 10010 10022 and 10026 Puritan St
General Information
Standard status
Active
Size
6,000 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,430
Building Details
Building Size
6,000 SF
Year Built
1958
Listing Agency:
My Realty LLC
(248) 207-6307
Listed By:
Joseph Manuel · License #6501302689
(248) 207-6307
Source:
Elliman
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 23 at 5:59AM
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 My Realty LLC
Investment Insights
Based on property information with market context.
This property presents an opportunity to own a business in a prime location. It features a muffler shop that has been updated and brought up to code. The property, located at 10010, 10022 and 10026 Puritan St, Detroit, MI 48238, encompasses 6342 square feet. A three-year lease is in place, having commenced on October 1, 2025, with a monthly rent of $7500. The location has a bike score of 43, indicating it is somewhat bikeable, a walk score of 56, suggesting it is somewhat walkable, and a transit score of 49, indicating some transit options are available.
Key Highlights
- Prime location on Puritan Ave (10010, 10022, 10026)
- Established muffler shop business opportunity
- Updated and up‑to‑code
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
$30,846
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
5.14%
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%
$616,920
$616.9K
Cap Rate 7%
$440,657
$440.7K
Cap Rate 9%
$342,733
$342.7K
Market Conditions
NOI Build-Up for 6,342 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
$46.4K $7.32/SF
− Vacancy
−$2.4K −$0.37/SF
EGI
$44.1K $6.95/SF
− OpEx
−$13.2K −$2.08/SF
NOI
$30.8K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$616,920
Cap Rate 7%
$440,657
Cap Rate 9%
$342,733
Alternative Uses
Best Use
Retail
$1.12M
$976.4K – $1.30M
NOI $78,114 @ 7.0% cap · market cap 13.02%
Second Best
Industrial
$440.7K
$385.6K – $514.1K
NOI $30,846 @ 7.0% cap · market cap 5.14%
Theoretical Best
Office A
$1.40M
$1.22M – $1.63M
NOI $97,935 @ 7.0% cap · market cap 16.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
852
Businesses Nearby
32k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 63%
Dining 37%
BP
Shops & Services
13,733 visits/mo
0.4 miles
White Castle
Dining
10,521 visits/mo
0.4 miles
Citgo
Shops & Services
6,034 visits/mo
0.1 miles
China Garden
Dining
1,279 visits/mo
0.5 miles
Demographics for 48238, MI
25,747
Population
16,341
Households
1.6
Avg Household Size
37
Median Age
13%
College-Educated
84%
High-School Grad
5.4 sq mi
ZIP Area
4,768
Density / Sq Mi
$30,286
Median Household Income
$25,948
Median Earnings
$950
Median Rent
$58,700
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.
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Frequently Asked Questions
What type of property is this?
Auto shop - Updated muffler shop in prime location with lease in place.
Where is this auto shop located?
The property is located at 10010 10022 and 10026 Puritan St Detroit, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Prime location on Puritan Ave (10010, 10022, 10026); Established muffler shop business opportunity; Updated and up‑to‑code
