Turnkey Bar and Restaurant
For Sale
$749,900
8867 Livernois Ave, Detroit, MI 48204
Newly renovated bar and restaurant with liquor license and parking.
Property Size2,675 SF
Price / SF$288.42
Days on Market110
Property Features for 8867 Livernois Ave
General Information
Standard status
Active
Size
2,675 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$7,129
Building Details
Building Size
2,675 SF
Year Built
1991
Listing Agency:
BE Realty Team
(586) 212-8820
Listed By:
George Basta
(586) 212-8820
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 11 at 9:11AM
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 BE Realty Team
Investment Insights
Based on property information with market context.
This property presents an opportunity to own a newly established bar located just south of the Avenue of Fashion on Livernois in Detroit. The space has been recently re-developed. The property includes over 2,600 square feet of newly developed space, along with over 2,000 square feet of surface lot space for parking. The sale includes all assets: the building, liquor license, furniture, stock, and more. The completely built-out and renovated bar and restaurant space is designed for entertaining and includes a complete audio sound system, camera system, security system, and POS system. The occupancy is for up to 120 people, including indoor and outdoor seating with a heated patio space. The property is situated in an area considered prime for redevelopment and growth. The Joe Louis Greenway, a 27.5-mile biking and walking trail extending to the Detroit Riverfront, is directly adjacent to the property.
Key Highlights
- Includes building, liquor license, furniture, stock, and all assets for a turnkey operation.
- Boasts 2,600+ sq. ft. of newly developed bar/restaurant space with occupancy for 120 people.
- Located directly adjacent to the Joe Louis Greenway, a 27.5‑mile biking and walking trail.
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
$34,311
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
4.58%
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%
$686,220
$686.2K
Cap Rate 7%
$490,157
$490.2K
Cap Rate 9%
$381,233
$381.2K
Market Conditions
NOI Build-Up for 2,600 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
$48.4K $18.60/SF
− Vacancy
−$2.6K −$1.00/SF
EGI
$45.7K $17.60/SF
− OpEx
−$11.4K −$4.40/SF
NOI
$34.3K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$686,220
Cap Rate 7%
$490,157
Cap Rate 9%
$381,233
Alternative Uses
Best Use
Specialty Retail
$490.2K
$428.9K – $571.9K
NOI $34,311 @ 7.0% cap · market cap 4.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$573.6K
$501.9K – $669.2K
NOI $40,150 @ 7.0% cap · market cap 5.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
315
Businesses Nearby
68k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 72%
Shops & Services 28%
McDonald's
Dining
27,407 visits/mo
0.2 miles
Wendy's
Dining
14,200 visits/mo
0.2 miles
BP
Shops & Services
7,019 visits/mo
0.3 miles
KFC
Dining
6,262 visits/mo
0.3 miles
Valero Energy
Shops & Services
5,361 visits/mo
0.4 miles
Demographics for 48204, MI
21,738
Population
13,691
Households
1.6
Avg Household Size
37
Median Age
10%
College-Educated
83%
High-School Grad
5.0 sq mi
ZIP Area
4,348
Density / Sq Mi
$32,875
Median Household Income
$26,701
Median Earnings
$970
Median Rent
$53,600
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
- STAK$ Bar And Grill — 8755 W Grand River Ave, Detroit, MI 48204
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- Chicago Blu'z Bar & Grill — 8203 W Chicago, Detroit, MI 48204
- Varsity Lounge — 8867 Livernois, Detroit, MI 48204
Frequently Asked Questions
What type of property is this?
Bar & Pub - Newly renovated bar and restaurant with liquor license and parking.
Where is this bar & pub located?
The property is located at 8867 Livernois Ave Detroit, MI.
What is the asking price?
The asking price for this property is $749,900.
What are key features of this property?
This property features: Includes building, liquor license, furniture, stock, and all assets for a turnkey operation.; Boasts 2,600+ sq. ft. of newly developed bar/restaurant space with occupancy for 120 people.; Located directly adjacent to the Joe Louis Greenway, a 27.5‑mile biking and walking trail.
