Restaurant and Banquet
For Sale
$280,000
12712 PLYMOUTH RD, Detroit, MI 48227
Updated 4,000 SF restaurant and banquet setup with a fully equipped commercial kitchen, sizable lot, and paved parking.
Property Size4,000 SF
Lot Size0.22 Acres
Price / SF$70
Days on Market29
Property Features for 12712 PLYMOUTH RD
General Information
Standard status
Active
Size
4,000 SF
Lot size
0.22 Acres
Property subtype
Industrial
Additional Details
Road Access
Yes
Amenities
open floor plan
fully equipped commercial kitchen
paved parking
3
Asphalt
80120
Building Details
Year Built
20
Year Renovated
2024
Listing Agency:
Keller Williams Realty-Great Lakes
(586) 808-6436
Listed By:
Erick Monzo
(586) 808-6436
Source:
Xome
Added: Jul 15
Changed: Aug 8
Last Checked: Aug 11 at 5:48AM
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 Keller Williams Realty-Great Lakes
Investment Insights
Based on property information with market context.
This updated 4,000-square-foot restaurant and banquet facility is currently operating with an open floor plan and a full-service commercial kitchen. The property also includes modern 2024 renovations and is presented as flexible for alternative commercial uses.
The building sits on an approximately 80 x 120-foot lot with about 80 feet of road frontage, supporting strong site presence. Ample paved parking is available on site, and the property is offered with flexible zoning considerations and land contract terms mentioned in the remarks.
For buyers evaluating layout and operational readiness, the combination of an open event/guest area, fully equipped kitchen, and recent improvements provides a practical foundation for restaurant or other compatible commercial conversions.
The building sits on an approximately 80 x 120-foot lot with about 80 feet of road frontage, supporting strong site presence. Ample paved parking is available on site, and the property is offered with flexible zoning considerations and land contract terms mentioned in the remarks.
For buyers evaluating layout and operational readiness, the combination of an open event/guest area, fully equipped kitchen, and recent improvements provides a practical foundation for restaurant or other compatible commercial conversions.
Key Highlights
- Updated 4,000 SF commercial property currently operating as a banquet hall and full‑service restaurant
- Fully equipped commercial kitchen for restaurant use or adaptable for other commercial concepts
- Modern 2024 renovations
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
$19,455
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
6.95%
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%
$389,100
$389.1K
Cap Rate 7%
$277,929
$277.9K
Cap Rate 9%
$216,167
$216.2K
Market Conditions
NOI Build-Up for 4,000 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
$29.3K $7.32/SF
− Vacancy
−$1.5K −$0.37/SF
EGI
$27.8K $6.95/SF
− OpEx
−$8.3K −$2.08/SF
NOI
$19.5K $4.86/SF
Area
ZIP 48227
Vacancy
5.08%
Lease Rate
$7.32 /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%
$389,100
Cap Rate 7%
$277,929
Cap Rate 9%
$216,167
Alternative Uses
Best Use
Specialty Retail
$570.9K
$499.5K – $666.0K
NOI $39,960 @ 7.0% cap · market cap 14.27%
Second Best
Retail
$505.1K
$442.0K – $589.3K
NOI $35,356 @ 7.0% cap · market cap 12.63%
Theoretical Best
Multifamily LT 5
$650.8K
$569.4K – $759.2K
NOI $45,553 @ 7.0% cap · market cap 16.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
6k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Valero Energy
Shops & Services
4,255 visits/mo
0.3 miles
Marathon Petroleum
Shops & Services
1,959 visits/mo
0.3 miles
Demographics for 48227, MI
40,266
Population
19,933
Households
2
Avg Household Size
36
Median Age
12%
College-Educated
83%
High-School Grad
7.5 sq mi
ZIP Area
5,369
Density / Sq Mi
$36,221
Median Household Income
$31,797
Median Earnings
$1,034
Median Rent
$70,900
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Updated 4,000 SF restaurant and banquet setup with a fully equipped commercial kitchen, sizable lot, and paved parking.
Where is this conventional restaurant located?
The property is located at 12712 PLYMOUTH RD Detroit, MI.
What is the asking price?
The asking price for this property is $280,000.
What are key features of this property?
This property features: Updated 4,000 SF commercial property currently operating as a banquet hall and full‑service restaurant; Fully equipped commercial kitchen for restaurant use or adaptable for other commercial concepts; Modern 2024 renovations
