Renovated Wedding
New
For Sale
$159,000
12645 Gratiot Ave, Detroit, MI 48205
Flexible open layout with updated mechanical systems, furnishings, and equipment included.
Property Size1,426 SF
Days on Market7
Property Features for 12645 Gratiot Ave
General Information
Standard status
Active
Size
1,426 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$3,289
Building Details
Building Size
1,426 SF
Year Built
1941
Listing Agency:
Home Negotiators LLC
Listed By:
Phillip VanBuren
(313) 622-1456
Source:
Elliman
Added: Sep 18
Last Checked: Sep 24 at 11:00AM
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 Home Negotiators LLC
Investment Insights
Based on property information with market context.
This 1,422-square-foot commercial property at 12645 Gratiot Ave features a renovated entertainment hall with bright interiors, updated mechanical systems, and an adaptable open floor plan. The building dates to 1941, while the current improvements support a contemporary event-oriented setting. Furnishings and equipment are included with the property.
Positioned on Gratiot Avenue in Detroit, the site benefits from reported traffic exceeding 30,000 vehicles daily. The surrounding corridor also records a Bike Score of 52, Walk Score of 54, and Transit Score of 47. The existing configuration has been identified for potential use as a church, daycare, creative studio, boutique retail concept, or community event space.
Positioned on Gratiot Avenue in Detroit, the site benefits from reported traffic exceeding 30,000 vehicles daily. The surrounding corridor also records a Bike Score of 52, Walk Score of 54, and Transit Score of 47. The existing configuration has been identified for potential use as a church, daycare, creative studio, boutique retail concept, or community event space.
Key Highlights
- 1,422‑square‑foot renovated entertainment hall
- Flexible open floor plan with bright interiors
- Updated mechanical systems
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
$14,447
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
9.09%
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%
$288,940
$288.9K
Cap Rate 7%
$206,386
$206.4K
Cap Rate 9%
$160,522
$160.5K
Market Conditions
NOI Build-Up for 1,426 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
$25.0K $17.52/SF
− Vacancy
−$5.7K −$4.01/SF
EGI
$19.3K $13.51/SF
− OpEx
−$4.8K −$3.38/SF
NOI
$14.4K $10.13/SF
Area
Detroit, MI
Vacancy
22.90%
Lease Rate
$17.52 /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%
$288,940
Cap Rate 7%
$206,386
Cap Rate 9%
$160,522
Alternative Uses
Best Use
Office B
$206.4K
$180.6K – $240.8K
NOI $14,447 @ 7.0% cap · market cap 9.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$314.6K
$275.3K – $367.0K
NOI $22,021 @ 7.0% cap · market cap 13.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
295
Businesses Nearby
Explore this area
Business Placement
Demographics for 48205, MI
34,056
Population
17,102
Households
2
Avg Household Size
32
Median Age
9%
College-Educated
85%
High-School Grad
6.4 sq mi
ZIP Area
5,321
Density / Sq Mi
$40,612
Median Household Income
$30,833
Median Earnings
$1,149
Median Rent
$55,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Detroit, MI
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Frequently Asked Questions
What type of property is this?
Wedding venue - Flexible open layout with updated mechanical systems, furnishings, and equipment included.
Where is this wedding venue located?
The property is located at 12645 Gratiot Ave Detroit, MI.
What is the asking price?
The asking price for this property is $159,000.
What are key features of this property?
This property features: 1,422‑square‑foot renovated entertainment hall; Flexible open floor plan with bright interiors; Updated mechanical systems
