Auto Service Property and
For Sale
Contact for pricing
201 S Mill St, South Lyon, MI 48178
For sale includes an established automotive business, the property, and additional lot rental income.
Property Size14,938 SF
Price / SF$150.62
Days on Market679
Property Features for 201 S Mill St
General Information
Standard status
Active
Size
14,938 SF
Property subtype
Business for Sale, Mixed Use, Retail
Net Operating Income
$261,000
Additional Details
Business Included
Yes
Building Details
Year Built
1940
Buildings
4
Listing Agency:
Resource Realty Group
Listed By:
Larry Gotcher · License #MI MI
(734) 732-3789
Source:
Crexi
Added: Oct 29, 2024
Changed: Aug 22
Last Checked: Sep 4 at 3:18PM
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 Resource Realty Group
Investment Insights
Based on property information with market context.
This for-sale offering combines an established auto business with the underlying property. The sale also includes additional lot rental income, creating a structure that supports both operating and rental components.
The property is located at 201 S Mill St in South Lyon, Michigan (48178). While specific building details and configuration are not provided here, the listing description confirms that the transaction includes the business and the real estate, along with the extra lot(s) generating rental income.
Prospective buyers should review the available terms and due diligence materials to confirm the exact boundaries and responsibilities associated with both the primary property and the included rental lot income.
The property is located at 201 S Mill St in South Lyon, Michigan (48178). While specific building details and configuration are not provided here, the listing description confirms that the transaction includes the business and the real estate, along with the extra lot(s) generating rental income.
Prospective buyers should review the available terms and due diligence materials to confirm the exact boundaries and responsibilities associated with both the primary property and the included rental lot income.
Key Highlights
- Year built: 1940
- For sale includes an established automotive business and the associated property
- Includes additional lot rental income
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
$160,739
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
7.14%
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%
$3,214,780
$3.2M
Cap Rate 7%
$2,296,271
$2.3M
Cap Rate 9%
$1,785,989
$1.8M
Market Conditions
NOI Build-Up for 14,938 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
$251.0K $16.80/SF
− Vacancy
−$21.3K −$1.43/SF
EGI
$229.6K $15.37/SF
− OpEx
−$68.9K −$4.61/SF
NOI
$160.7K $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%
$3,214,780
Cap Rate 7%
$2,296,271
Cap Rate 9%
$1,785,989
Alternative Uses
Best Use
Retail
$2.30M
$2.01M – $2.68M
NOI $160,739 @ 7.0% cap · market cap 7.14%
Second Best
Industrial
$1.06M
$925.2K – $1.23M
NOI $74,012 @ 7.0% cap · market cap 3.29%
Theoretical Best
Specialty Retail
$3.22M
$2.82M – $3.76M
NOI $225,540 @ 7.0% cap · market cap 10.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
562
Businesses Nearby
27k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 45%
Dining 39%
Home Improvements & Furnishings 16%
Wendy's
Dining
7,968 visits/mo
0.4 miles
BP
Shops & Services
4,674 visits/mo
0.5 miles
Peter's True Value
Home Improvements & Furnishings
4,250 visits/mo
0.2 miles
Huntington Bank
Shops & Services
3,603 visits/mo
0.3 miles
Hungry Howie's Pizza
Dining
2,657 visits/mo
0.4 miles
Demographics for 48178, MI
36,858
Population
14,402
Households
2.6
Avg Household Size
42
Median Age
53%
College-Educated
98%
High-School Grad
48.0 sq mi
ZIP Area
768
Density / Sq Mi
$130,781
Median Household Income
$70,253
Median Earnings
$1,231
Median Rent
$392,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - For sale includes an established automotive business, the property, and additional lot rental income.
Where is this auto shop located?
The property is located at 201 S Mill St South Lyon, MI.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Year built: 1940; For sale includes an established automotive business and the associated property; Includes additional lot rental income
