Listing Agency: CENTURY 21 Curran & Oberski Dearborn Heights t***@gmail.com Show Phone

Listed By: Timothy Hillmer · License #MI

Source: Crexi

Added: Oct 4, 2024 Changed: Aug 11 Last Checked: Aug 21 at 7:05PM

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Investment Insights

Based on property information with market context.

This well-established convenience store, operating for over 20 years, includes a liquor, beer, wine, and lotto license. The sale encompasses the business, building, land, an attached house, and an apartment located above the store. The property benefits from a high-traffic location near South Commerce Lake, presenting potential land development opportunities. The sale includes three tax IDs: 1722103028, 1722103006, and 1722103003. The property at 1209 W Oakley is included in the sale, and there is ample parking available. The building size is 3117 square feet. The property offers lake views and multi-unit rental income.

Key Highlights

• Established convenience store (20+ years) with liquor/beer/wine/lotto license included
• Multi‑unit rental income from apartment above store and attached house
• Includes business, building, land, house, apartment, and liquor license in sale

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

$47,062

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

5.70%

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%

$941,240 $941.2K

Cap Rate 7%

$672,314 $672.3K

Cap Rate 9%

$522,911 $522.9K

Market Conditions

NOI Build-Up for 3,117 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

$67.3K $21.60/SF

− Vacancy

−$4.6K −$1.47/SF

EGI

$62.7K $20.13/SF

− OpEx

−$15.7K −$5.03/SF

NOI

$47.1K $15.10/SF

Area

Oakland County, MI

Vacancy

6.80%

Lease Rate

$21.60 /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%

$941,240

Cap Rate 7%

$672,314

Cap Rate 9%

$522,911

Alternative Uses

Best Use

Specialty Retail

$672.3K

$588.3K – $784.4K (±1% cap)

NOI $47,062 @ 7.0% cap · market cap 5.70%

Second Best

Retail

$479.1K

$419.3K – $559.0K (±1% cap)

NOI $33,540 @ 7.0% cap · market cap 4.07%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick Real Estate Agency Law Firm Restaurant Hair Salon Dental Office Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

100

Businesses Nearby

326

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Apparel 100%

Oakley Apparel

326 visits/mo 0.1 miles

Demographics for 48390, MI

24,273

Population

10,995

Households

2.2

Avg Household Size

44

Median Age

43%

College-Educated

96%

High-School Grad

12.5 sq mi

ZIP Area

1,942

Density / Sq Mi

$89,411

Median Household Income

$53,442

Median Earnings

$1,575

Median Rent

$287,900

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - 20+ year convenience store with liquor, beer, wine, lotto.

Where is this grocery and convenience store located?

The property is located at 1215 W Oakley Park Road Commerce Twp, MI.

What is the asking price?

The asking price for this property is $825,000.

What are key features of this property?

This property features: Established convenience store (20+ years) with liquor/beer/wine/lotto license included; Multi‑unit rental income from apartment above store and attached house; Includes business, building, land, house, apartment, and liquor license in sale