Established Automotive
New
For Sale
$279,000
10400 W 7 Mile Road, Detroit, MI 48221
Commercial automotive property with an additional vacant lot across the street.
Property Size3,872 SF
Days on Market7
Property Features for 10400 W 7 Mile Road
General Information
Standard status
Active
Size
3,872 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$5,802
Building Details
Building Size
3,872 SF
Year Built
1941
Listing Agency:
Real Estate One-Dbn Hts
(313) 561-3860
Listed By:
Ali Fayz · License #6501393929
Source:
Buyatthelake
Added: Aug 13
Changed: Aug 14
Last Checked: Aug 19 at 2:49PM
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 Real Estate One-Dbn Hts
Investment Insights
Based on property information with market context.
Wise Automotive is an established automotive business operating from a commercial property at 10400 W 7 Mile Road in Detroit. The business has been in operation for over 70 years, and the building dates to 1941.
The property is zoned Commercial and includes access to a vacant lot across the street through the lease. The offering combines an automotive service location with an established operating history and a separately situated leased lot.
The property is zoned Commercial and includes access to a vacant lot across the street through the lease. The offering combines an automotive service location with an established operating history and a separately situated leased lot.
Key Highlights
- Automotive business operating for over 70 years
- 1941‑built automotive property at 10400 W 7 Mile Road
- Commercial zoning
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
$18,832
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
6.75%
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%
$376,640
$376.6K
Cap Rate 7%
$269,029
$269.0K
Cap Rate 9%
$209,244
$209.2K
Market Conditions
NOI Build-Up for 3,872 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
$28.3K $7.32/SF
− Vacancy
−$1.4K −$0.37/SF
EGI
$26.9K $6.95/SF
− OpEx
−$8.1K −$2.08/SF
NOI
$18.8K $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%
$376,640
Cap Rate 7%
$269,029
Cap Rate 9%
$209,244
Alternative Uses
Best Use
Retail
$681.3K
$596.1K – $794.9K
NOI $47,691 @ 7.0% cap · market cap 17.09%
Second Best
Industrial
$269.0K
$235.4K – $313.9K
NOI $18,832 @ 7.0% cap · market cap 6.75%
Theoretical Best
Office A
$854.2K
$747.4K – $996.5K
NOI $59,792 @ 7.0% cap · market cap 21.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
625
Businesses Nearby
22k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 82%
Dining 13%
Electronics 4%
Pet Supplies Plus
Shops & Services
6,947 visits/mo
0.5 miles
Dollar General
Shops & Services
6,620 visits/mo
0.5 miles
Comerica Bank
Shops & Services
2,946 visits/mo
0.5 miles
Papa's Pizza & BBQ
Dining
2,052 visits/mo
0.4 miles
Independence Bank
Shops & Services
1,575 visits/mo
0.5 miles
Demographics for 48221, MI
38,204
Population
17,452
Households
2.2
Avg Household Size
38
Median Age
29%
College-Educated
90%
High-School Grad
5.2 sq mi
ZIP Area
7,347
Density / Sq Mi
$55,583
Median Household Income
$37,019
Median Earnings
$1,174
Median Rent
$138,700
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.
Similar Off Market Nearby
- Mark V Collision — 3239 W McNichols Rd, Detroit, MI 48221
- Rite Collision — 8530 W McNichols Rd, Detroit, MI 48221
- Bagley Auto Repair — 7642 W McNichols Rd, Detroit, MI 48221
- 6 Mile Auto Solutions — 7100 W McNichols Rd, Detroit, MI 48221
- DETROIT TIRE SERVICE LLC — 7100 W McNichols Rd, Detroit, MI 48221
Frequently Asked Questions
What type of property is this?
Auto shop - Commercial automotive property with an additional vacant lot across the street.
Where is this auto shop located?
The property is located at 10400 W 7 Mile Road Detroit, MI.
What is the asking price?
The asking price for this property is $279,000.
What are key features of this property?
This property features: Automotive business operating for over 70 years; 1941‑built automotive property at 10400 W 7 Mile Road; Commercial zoning
