Cabaret-Licensed Gentlemen's
For Sale
$750,000
13109 W Eight Mile Rd, Detroit, MI 48235
Turn-key gentlemen's club with cabaret and liquor licenses, full food menu, and updated kitchen equipment on a corner with ample parking.
Property Size3,800 SF
Price / SF$197.37
Days on Market191
Property Features for 13109 W Eight Mile Rd
General Information
Standard status
Active
Size
3,800 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Liquor License
Yes
Building Details
Year Built
1954
Listing Agency:
Berkshire Hathaway HomeServices Kee Realty
Listed By:
Bill Minor · License #MISPE-6501243324
(586) 840-0440
Source:
Vmrealestatemichigan
Added: Mar 4
Changed: Sep 9
Last Checked: Sep 10 at 10:26AM
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 Berkshire Hathaway HomeServices Kee Realty
Investment Insights
Based on property information with market context.
Historic gentlemen’s club for sale in Detroit, MI, family owned and operated for more than 50 years. The offering includes cabaret license (D) and liquor license (C), along with a full food menu and bar.
The club is described as a turn-key operation with entertainment options and a spacious kitchen featuring updated equipment. An ample parking setup is noted for the property, and it is positioned on a corner location.
If you’re seeking an established, long-running nightlife concept with both cabaret and liquor licensing in place, this business and property combination is being presented for sale with the core operating components included.
The club is described as a turn-key operation with entertainment options and a spacious kitchen featuring updated equipment. An ample parking setup is noted for the property, and it is positioned on a corner location.
If you’re seeking an established, long-running nightlife concept with both cabaret and liquor licensing in place, this business and property combination is being presented for sale with the core operating components included.
Key Highlights
- 1954‑built gentlemen’s club in Detroit, MI
- Cabaret license (D) and liquor license (C)
- Great cash flow, with a full food menu and bar
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
$37,450
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
4.99%
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%
$749,000
$749.0K
Cap Rate 7%
$535,000
$535.0K
Cap Rate 9%
$416,111
$416.1K
Market Conditions
NOI Build-Up for 3,800 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
$53.8K $14.16/SF
− Vacancy
−$3.9K −$1.02/SF
EGI
$49.9K $13.14/SF
− OpEx
−$12.5K −$3.29/SF
NOI
$37.5K $9.86/SF
Area
ZIP 48235
Vacancy
7.20%
Lease Rate
$14.16 /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%
$749,000
Cap Rate 7%
$535,000
Cap Rate 9%
$416,111
Alternative Uses
Best Use
Specialty Retail
$535.0K
$468.1K – $624.2K
NOI $37,450 @ 7.0% cap · market cap 4.99%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$538.7K
$471.3K – $628.4K
NOI $37,706 @ 7.0% cap · market cap 5.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48235, MI
45,188
Population
20,946
Households
2.2
Avg Household Size
39
Median Age
15%
College-Educated
91%
High-School Grad
6.2 sq mi
ZIP Area
7,288
Density / Sq Mi
$41,011
Median Household Income
$31,545
Median Earnings
$1,151
Median Rent
$79,400
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Frequently Asked Questions
What type of property is this?
Night club - Turn-key gentlemen's club with cabaret and liquor licenses, full food menu, and updated kitchen equipment on a corner with ample parking.
Where is this night club located?
The property is located at 13109 W Eight Mile Rd Detroit, 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: 1954‑built gentlemen’s club in Detroit, MI; Cabaret license (D) and liquor license (C); Great cash flow, with a full food menu and bar
