Freestanding Catering Kitchen in Mount
For Sale
Contact for pricing
1120 Southbound Gratiot Ave, Mount Clemens, MI
Single-tenant catering kitchen in Mount Clemens, Detroit MSA.
Property Size2,301 SF
Lot Size0.33 Acres
Price / SF$206
Days on Market1120
Property Features for 1120 Southbound Gratiot Ave
General Information
Standard status
Active
Size
2,301 SF
Lot size
0.33 Acres
Property subtype
RETAIL
Listing Agency:
Legacy Real Estate Advisors
(248) 450-3259
Listed By:
Dominic Shamany · License ##6506047766
(248) 450-3259
Source:
Moodyscre
Added: Jul 14, 2023
Changed: Jul 6
Last Checked: Jul 21 at 5:12AM
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 Legacy Real Estate Advisors
Investment Insights
Based on property information with market context.
This single-tenant, freestanding catering kitchen is located in Mount Clemens, Michigan, within the Detroit MSA, which is ranked among the top 15 in the U.S.A. The surrounding area has a dense population, with over 90,000 residents within a 3-mile radius. Daytime employment exceeds 33,000 people within the same radius, and the average household income surpasses $69,000. Population growth is projected at +0.35% and household growth at +0.41% through 2027 within a 1-mile radius. The property is strategically situated along southbound Gratiot Avenue, which experiences a daily traffic volume of over 59,000 vehicles. It is located a 30-minute commute to downtown Detroit, MI. The property is 2,301 square feet.
Key Highlights
- Freestanding building with single tenant angels catering kitchen.
- High traffic location: Over 59,000+ vehicles pass the site daily on Gratiot Ave.
- Dense demographics: Over 90,000+ people reside within a 3‑mile radius.
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
$30,155
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
6.36%
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%
$603,100
$603.1K
Cap Rate 7%
$430,786
$430.8K
Cap Rate 9%
$335,056
$335.1K
Market Conditions
NOI Build-Up for 2,301 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
$45.6K $19.80/SF
− Vacancy
−$5.4K −$2.33/SF
EGI
$40.2K $17.47/SF
− OpEx
−$10.1K −$4.37/SF
NOI
$30.2K $13.11/SF
Area
Macomb County, MI
Vacancy
11.75%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
25.00%
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%
$603,100
Cap Rate 7%
$430,786
Cap Rate 9%
$335,056
Alternative Uses
Best Use
Specialty Retail
$430.8K
$376.9K – $502.6K
NOI $30,155 @ 7.0% cap · market cap 6.36%
Second Best
Retail
$243.0K
$212.6K – $283.5K
NOI $17,009 @ 7.0% cap · market cap 3.59%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
496
Businesses Nearby
30k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 68%
Shops & Services 32%
McDonald's
Dining
18,209 visits/mo
0.5 miles
Sunoco
Shops & Services
4,950 visits/mo
0.2 miles
Huntington Bank
Shops & Services
2,482 visits/mo
0.3 miles
Family Dollar
Shops & Services
2,157 visits/mo
0.3 miles
SUBWAY
Dining
1,783 visits/mo
0.2 miles
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Single-tenant catering kitchen in Mount Clemens, Detroit MSA.
Where is this commercial kitchen located?
The property is located at 1120 Southbound Gratiot Ave Mount Clemens, MI.
What is the asking price?
The asking price for this property is $474,006.
What are key features of this property?
This property features: Freestanding building with single tenant angels catering kitchen.; High traffic location: Over 59,000+ vehicles pass the site daily on Gratiot Ave.; Dense demographics: Over 90,000+ people reside within a 3‑mile radius.
