Four-Unit Retail
For Sale
Contact for pricing
1798 WABASH ST, Detroit, MI 48216
Four-unit retail building with 220-volt electricity, currently non-conforming, and zoned R2 for potential single-family or condo development.
Property Size6,173 SF
Price / SF$145.80
Days on Market783
Property Features for 1798 WABASH ST
General Information
Standard status
Active
Size
6,173 SF
Property subtype
Retail, Industrial, Land
Zoning
R2
Additional Details
Multifamily Units
4
Building Details
Year Built
1948
Listing Agency:
Realtyflo Inc
(313) 466-7253
Listed By:
Lawrence Else · License #6502386964
Source:
Crexi
Added: Jun 16, 2024
Changed: Jul 10
Last Checked: Aug 5 at 1:24PM
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 Realtyflo Inc
Investment Insights
Based on property information with market context.
The property at 1798 Wabash is a multi-unit retail building currently operating as a non-conforming commercial use. It is zoned R2 under Detroit’s Master Plan, which the remarks indicate allows for single-family or condo development. The building contains over 6,000 square feet and is currently divided into four units, with each unit equipped with 220-volt electricity.
Located in Detroit’s Corktown district, the building is described as steps away and adjacent to the newly revitalized Michigan Central Station. The area is also described as being surrounded by local amenities, including cafes, boutique shops, and upscale dining.
For buyers and developers, the site offers a practical combination of an operating multi-unit configuration and redevelopment upside based on the stated R2 zoning. The current layout could be expanded to six units, and the remarks also note an option to add a second floor, providing additional flexibility for how the property may be reconfigured. Whether you’re looking to pursue the existing setup or evaluate a residential conversion consistent with the stated zoning allowances, this building presents a straightforward redevelopment canvas in Corktown.
Located in Detroit’s Corktown district, the building is described as steps away and adjacent to the newly revitalized Michigan Central Station. The area is also described as being surrounded by local amenities, including cafes, boutique shops, and upscale dining.
For buyers and developers, the site offers a practical combination of an operating multi-unit configuration and redevelopment upside based on the stated R2 zoning. The current layout could be expanded to six units, and the remarks also note an option to add a second floor, providing additional flexibility for how the property may be reconfigured. Whether you’re looking to pursue the existing setup or evaluate a residential conversion consistent with the stated zoning allowances, this building presents a straightforward redevelopment canvas in Corktown.
Key Highlights
- Built in 1948, the property is currently a non‑conforming commercial use.
- Zoned R2 under Detroit’s Master Plan, allowing for single‑family or condo development.
- Over 6,000 SF currently divided into 4 units, with 220‑volt electricity.
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
$76,032
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
8.45%
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%
$1,520,640
$1.5M
Cap Rate 7%
$1,086,171
$1.1M
Cap Rate 9%
$844,800
$844.8K
Market Conditions
NOI Build-Up for 6,173 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
$114.8K $18.60/SF
− Vacancy
−$6.2K −$1.00/SF
EGI
$108.6K $17.60/SF
− OpEx
−$32.6K −$5.28/SF
NOI
$76.0K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
30.00%
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%
$1,520,640
Cap Rate 7%
$1,086,171
Cap Rate 9%
$844,800
Alternative Uses
Best Use
Retail
$1.09M
$950.4K – $1.27M
NOI $76,032 @ 7.0% cap · market cap 8.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.36M
$1.19M – $1.59M
NOI $95,325 @ 7.0% cap · market cap 10.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
823
Businesses Nearby
36k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 53%
Dining 39%
Home Improvements & Furnishings 9%
Mobil
Shops & Services
9,396 visits/mo
0.3 miles
White Castle
Dining
8,727 visits/mo
0.2 miles
Marathon
Shops & Services
7,847 visits/mo
0.2 miles
SUBWAY
Dining
5,168 visits/mo
0.2 miles
Brooks Lumber
Home Improvements & Furnishings
3,030 visits/mo
0.4 miles
Demographics for 48216, MI
5,031
Population
3,398
Households
1.5
Avg Household Size
35
Median Age
37%
College-Educated
87%
High-School Grad
2.3 sq mi
ZIP Area
2,187
Density / Sq Mi
$42,278
Median Household Income
$42,189
Median Earnings
$860
Median Rent
$225,300
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Retail space - Four-unit retail building with 220-volt electricity, currently non-conforming, and zoned R2 for potential single-family or condo development.
Where is this retail space located?
The property is located at 1798 WABASH ST Detroit, MI.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Built in 1948, the property is currently a non‑conforming commercial use.; Zoned R2 under Detroit’s Master Plan, allowing for single‑family or condo development.; Over 6,000 SF currently divided into 4 units, with 220‑volt electricity.
