Renovated Breakfast
For Sale
Contact for pricing
1234 South Main Street, Royal Oak, MI 48067
Updated restaurant space with an established kitchen, counter service area, and dining buildout.
Property Size1,800 SF
Price / SF$222.22
Days on Market13
Property Features for 1234 South Main Street
General Information
Standard status
Active
Size
1,800 SF
Property subtype
Retail, Hospitality, Business for Sale
Financials
Asking Price
$400,000
Business Included
Yes
Additional Details
Seating Capacity
60
Listing Agency:
Metropolitan Property Group
Listed By:
JOHNNY GJOKAJ · License #Mi 352381
Source:
Crexi
Added: Sep 8
Changed: Sep 13
Last Checked: Sep 19 at 9:39AM
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 Metropolitan Property Group
Investment Insights
Based on property information with market context.
This approximately 1,800-square-foot breakfast diner in Royal Oak includes seating for approximately 60 guests, an established kitchen, counter service area, and dining improvements. The restaurant has been recently renovated and is structured under a gross lease.
The property is positioned at 1234 South Main Street near Downtown Royal Oak’s pedestrian activity, restaurants, nightlife, entertainment, residences, and offices. The nearby Corewell Health Royal Oak medical campus adds another notable element to the surrounding commercial and institutional setting.
The property is positioned at 1234 South Main Street near Downtown Royal Oak’s pedestrian activity, restaurants, nightlife, entertainment, residences, and offices. The nearby Corewell Health Royal Oak medical campus adds another notable element to the surrounding commercial and institutional setting.
Key Highlights
- Approximately 1,800 square feet of restaurant space
- Seating for approximately 60 guests
- Recently renovated interior with counter and dining buildout
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
$27,177
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
6.79%
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%
$543,540
$543.5K
Cap Rate 7%
$388,243
$388.2K
Cap Rate 9%
$301,967
$302.0K
Market Conditions
NOI Build-Up for 1,800 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
$38.9K $21.60/SF
− Vacancy
−$2.6K −$1.47/SF
EGI
$36.2K $20.13/SF
− OpEx
−$9.1K −$5.03/SF
NOI
$27.2K $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%
$543,540
Cap Rate 7%
$388,243
Cap Rate 9%
$301,967
Alternative Uses
Best Use
Specialty Retail
$388.2K
$339.7K – $453.0K
NOI $27,177 @ 7.0% cap · market cap 6.79%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
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
1,437
Businesses Nearby
54k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 61%
Shops & Services 39%
Holiday Market
Groceries
32,802 visits/mo
0.1 miles
chrysler main train station
Shops & Services
10,203 visits/mo
0.3 miles
Fifth Third Bank & ATM
Shops & Services
7,078 visits/mo
0.3 miles
Huntington Bank
Shops & Services
3,892 visits/mo
0.3 miles
Demographics for 48067, MI
24,589
Population
13,714
Households
1.8
Avg Household Size
36
Median Age
67%
College-Educated
96%
High-School Grad
4.6 sq mi
ZIP Area
5,345
Density / Sq Mi
$107,355
Median Household Income
$76,700
Median Earnings
$1,435
Median Rent
$309,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Updated restaurant space with an established kitchen, counter service area, and dining buildout.
Where is this breakfast & diner located?
The property is located at 1234 South Main Street Royal Oak, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Approximately 1,800 square feet of restaurant space; Seating for approximately 60 guests; Recently renovated interior with counter and dining buildout
