Grocery and Beer Market
For Sale
$750,000
700 Auburn Ave, Pontiac, MI 48342
Mixed-use retail building with established beer and wine market, updated roof and refrigeration, plus second-floor apartment.
Property Size5,394 SF
Days on Market34
Property Features for 700 Auburn Ave
General Information
Standard status
Active
Size
5,394 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$8,462
Building Details
Building Size
5,394 SF
Year Built
1941
Listing Agency:
The Doctors Of Real Estate
(586) 202-0499
Listed By:
Charles N Tamou · License #6505431212
(586) 202-0499
Source:
Elliman
Added: Jul 9
Changed: Aug 10
Last Checked: Aug 10 at 8:24AM
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 The Doctors Of Real Estate
Investment Insights
Based on property information with market context.
This mixed-use retail property operates as an established Beer & Wine Market in Pontiac, and is comprised of a 5,394 SF retail building. The sale includes existing butcher equipment and store equipment. Recent improvements include a new roof (2022), a new freezer system (2023), and three new AC compressors (2023). The property also has 15+ on-site parking spaces and a second-floor apartment, creating a built-in residential component.
The building is located on 0.51 acres at a high-traffic location with excellent visibility. A potential liquor license eligibility is noted, but the buyer must verify details.
The business and real estate are both included in the offering. Pricing is presented as a sale of the building plus inventory, with estimated inventory value referenced in the remarks.
The building is located on 0.51 acres at a high-traffic location with excellent visibility. A potential liquor license eligibility is noted, but the buyer must verify details.
The business and real estate are both included in the offering. Pricing is presented as a sale of the building plus inventory, with estimated inventory value referenced in the remarks.
Key Highlights
- 5,394 SF mixed‑use retail building on 0.51 acres with established beer & wine market
- New roof in 2022; new freezer system and three new AC compressors in 2023
- Business and real estate included, with existing butcher equipment and store equipment included in the sale
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
$58,042
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
7.74%
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%
$1,160,840
$1.2M
Cap Rate 7%
$829,171
$829.2K
Cap Rate 9%
$644,911
$644.9K
Market Conditions
NOI Build-Up for 5,394 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
$90.6K $16.80/SF
− Vacancy
−$7.7K −$1.43/SF
EGI
$82.9K $15.37/SF
− OpEx
−$24.9K −$4.61/SF
NOI
$58.0K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,160,840
Cap Rate 7%
$829,171
Cap Rate 9%
$644,911
Alternative Uses
Best Use
Specialty Retail
$1.16M
$1.02M – $1.36M
NOI $81,441 @ 7.0% cap · market cap 10.86%
Second Best
Retail
$829.2K
$725.5K – $967.4K
NOI $58,042 @ 7.0% cap · market cap 7.74%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
164
Businesses Nearby
4k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Family Dollar
Shops & Services
3,635 visits/mo
0.1 miles
Demographics for 48342, MI
18,685
Population
7,559
Households
2.5
Avg Household Size
33
Median Age
10%
College-Educated
76%
High-School Grad
5.2 sq mi
ZIP Area
3,593
Density / Sq Mi
$33,750
Median Household Income
$29,970
Median Earnings
$851
Median Rent
$90,600
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.
Similar Off Market Nearby
- Pike Food Center — 465 E Pike St, Pontiac, MI 48342
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Mixed-use retail building with established beer and wine market, updated roof and refrigeration, plus second-floor apartment.
Where is this grocery and convenience store located?
The property is located at 700 Auburn Ave Pontiac, MI.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 5,394 SF mixed‑use retail building on 0.51 acres with established beer & wine market; New roof in 2022; new freezer system and three new AC compressors in 2023; Business and real estate included, with existing butcher equipment and store equipment included in the sale
