Turnkey Restaurant in East
For Sale
$1,200,000
13210 Michigan Ave, Dearborn, MI 48126
Fully updated restaurant with real estate in high-traffic location.
Property Size3,632 SF
Days on Market122
Property Features for 13210 Michigan Ave
General Information
Standard status
Active
Size
3,632 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$11,404
Building Details
Building Size
3,632 SF
Year Built
1942
Listing Agency:
RE/MAX Team 2000
(313) 561-0900
Listed By:
Bilal A Hamie · License #6501360292
(313) 561-0900
Source:
Elliman
Added: Apr 24
Changed: Aug 15
Last Checked: Aug 22 at 6:59AM
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 RE/MAX Team 2000
Investment Insights
Based on property information with market context.
This is a prime opportunity to acquire a fully updated, turnkey restaurant, including both the established business and the real estate. It is ideally located in East Downtown Dearborn along the highly trafficked Michigan Avenue corridor. The two-story property features a vibrant main-level dining area and a versatile second floor. The second floor is ideal for private events, catering, office space, or additional storage. The space is equipped with a top-of-the-line commercial kitchen and is supported by a loyal, established customer base. The property benefits from excellent visibility, strong surrounding demographics, and convenient public parking, enhancing its long-term value and growth potential. The flexible layout allows for a variety of culinary or hospitality concepts. The location has a bike score of 52, indicating it is bikeable, and a walk score of 81, indicating it is very walkable.
Key Highlights
- Fully updated, turnkey restaurant business and real estate included in sale.
- Prime location in East Downtown Dearborn on highly trafficked Michigan Avenue.
- Established business with loyal customer base.
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
$49,686
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
4.14%
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%
$993,720
$993.7K
Cap Rate 7%
$709,800
$709.8K
Cap Rate 9%
$552,067
$552.1K
Market Conditions
NOI Build-Up for 3,632 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
$69.7K $19.20/SF
− Vacancy
−$3.5K −$0.96/SF
EGI
$66.2K $18.24/SF
− OpEx
−$16.6K −$4.56/SF
NOI
$49.7K $13.68/SF
Area
Dearborn, MI
Vacancy
5.00%
Lease Rate
$19.20 /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%
$993,720
Cap Rate 7%
$709,800
Cap Rate 9%
$552,067
Alternative Uses
Best Use
Specialty Retail
$709.8K
$621.1K – $828.1K
NOI $49,686 @ 7.0% cap · market cap 4.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$801.2K
$701.1K – $934.8K
NOI $56,086 @ 7.0% cap · market cap 4.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,288
Businesses Nearby
144k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Dining 27%
Groceries 9%
Home Improvements & Furnishings 1%
McDonald's
Dining
20,883 visits/mo
0.4 miles
Dollar Tree
Shops & Services
15,469 visits/mo
0.4 miles
Bank of America
Shops & Services
12,984 visits/mo
0.2 miles
Restaurant Depot
Groceries
12,839 visits/mo
0.4 miles
Mobil
Shops & Services
12,516 visits/mo
0.3 miles
Demographics for 48126, MI
55,863
Population
16,919
Households
3.3
Avg Household Size
28
Median Age
24%
College-Educated
74%
High-School Grad
8.4 sq mi
ZIP Area
6,650
Density / Sq Mi
$42,353
Median Household Income
$27,724
Median Earnings
$1,222
Median Rent
$200,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully updated restaurant with real estate in high-traffic location.
Where is this conventional restaurant located?
The property is located at 13210 Michigan Ave Dearborn, MI.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Fully updated, turnkey restaurant business and real estate included in sale.; Prime location in East Downtown Dearborn on highly trafficked Michigan Avenue.; Established business with loyal customer base.
