Renovated
New
For Sale
$1,295,000
1087 Beaufait St, Detroit, MI 48207
Brewery, taproom, production space, and outdoor seating occupy a renovated industrial building.
Property Size9,000 SF
Lot Size0.32 Acres
Price / SF$143.89
Days on Market2
Property Features for 1087 Beaufait St
General Information
Standard status
Active
Size
9,000 SF
Total Parking Spaces
9
Lot size
0.32 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$2,848
Building Details
Building Size
9,000 SF
Year Built
1944
Year Renovated
2017
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
(313) 963-9891
Source:
Elliman
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 9:45AM
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 O'Connor Realty Detroit, LLC
Investment Insights
Based on property information with market context.
This microbrewery property combines a brewery, taproom, and production facility within a 9,000-square-foot industrial building. Originally constructed in 1944, the building was renovated in 2017 and includes an outdoor patio and seating area. The 0.319-acre site provides nine dedicated on-site parking spaces.
Located at 1087 Beaufait St in Detroit’s Islandview neighborhood, the property has a Walk Score of 50, a Bike Score of 68, and a Transit Score of 54. The existing configuration brings hospitality and brewing functions together in one commercial facility.
Located at 1087 Beaufait St in Detroit’s Islandview neighborhood, the property has a Walk Score of 50, a Bike Score of 68, and a Transit Score of 54. The existing configuration brings hospitality and brewing functions together in one commercial facility.
Key Highlights
- 9,000‑square‑foot brewery, taproom, and production facility
- Industrial building constructed in 1944 and renovated in 2017
- 0.319‑acre site with nine dedicated on‑site parking spaces
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
$43,773
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
3.38%
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%
$875,460
$875.5K
Cap Rate 7%
$625,329
$625.3K
Cap Rate 9%
$486,367
$486.4K
Market Conditions
NOI Build-Up for 9,000 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
$65.9K $7.32/SF
− Vacancy
−$3.3K −$0.37/SF
EGI
$62.5K $6.95/SF
− OpEx
−$18.8K −$2.08/SF
NOI
$43.8K $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%
$875,460
Cap Rate 7%
$625,329
Cap Rate 9%
$486,367
Alternative Uses
Best Use
Industrial
$625.3K
$547.2K – $729.6K
NOI $43,773 @ 7.0% cap · market cap 3.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.99M
$1.74M – $2.32M
NOI $138,980 @ 7.0% cap · market cap 10.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
575
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Brewery - Brewery, taproom, production space, and outdoor seating occupy a renovated industrial building.
Where is this brewery located?
The property is located at 1087 Beaufait St Detroit, MI.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: 9,000‑square‑foot brewery, taproom, and production facility; Industrial building constructed in 1944 and renovated in 2017; 0.319‑acre site with nine dedicated on‑site parking spaces
