Profitable Auto Repair Shop For
For Sale
$344,900
13118 Gratiot Avenue, Detroit, MI 48205
Established auto repair shop with real estate in Michigan.
Property Size4,468 SF
Days on Market150
Property Features for 13118 Gratiot Avenue
General Information
Standard status
Active
Size
4,468 SF
Property subtype
Commercial
Zoning
Commercial, Industrial
Building Details
Building Size
4,468 SF
Year Built
1945
Listing Agency:
Century 21 Professionals
(586) 215-1208
Listed By:
Ahmed Arafa · License #6506048224
(586) 215-1208
Source:
Carolbollo
Added: Mar 27
Changed: Aug 23
Last Checked: Aug 22 at 6:06PM
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 Century 21 Professionals
Investment Insights
Based on property information with market context.
This is an established mechanic shop business for sale in Michigan. This turnkey automotive service center presents an excellent opportunity to take over and grow an established business with over 40 years of successful operation, or launch your own automotive venture. This well-known transmission shop is located in a high-traffic, high-visibility area and is fully equipped and ready for immediate use. The property features 4 oversized 10’ roll-up doors and 5 hydraulic car lifts that are approximately 5–7 years old. Newer tools and equipment are included. Separate forced-air heating units service the shop and lobby. A large fenced lot provides ample parking and storage. The facility is versatile and well-suited for a transmission shop, brake shop, general auto repair, or used car dealership. This location offers strong upside potential for a new business as a Used Car Dealership.
Key Highlights
- Established auto repair shop with 40+ years of successful operation.
- Turnkey operation with newer tools and equipment included.
- High‑traffic, high‑visibility location.
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
$21,731
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
6.30%
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%
$434,620
$434.6K
Cap Rate 7%
$310,443
$310.4K
Cap Rate 9%
$241,456
$241.5K
Market Conditions
NOI Build-Up for 4,468 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
$32.7K $7.32/SF
− Vacancy
−$1.7K −$0.37/SF
EGI
$31.0K $6.95/SF
− OpEx
−$9.3K −$2.08/SF
NOI
$21.7K $4.86/SF
Area
Detroit, MI
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%
$434,620
Cap Rate 7%
$310,443
Cap Rate 9%
$241,456
Alternative Uses
Best Use
Retail
$786.2K
$687.9K – $917.2K
NOI $55,032 @ 7.0% cap · market cap 15.96%
Second Best
Industrial
$310.4K
$271.6K – $362.2K
NOI $21,731 @ 7.0% cap · market cap 6.30%
Theoretical Best
Office A
$985.7K
$862.5K – $1.15M
NOI $68,996 @ 7.0% cap · market cap 20.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
318
Businesses Nearby
32k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 86%
Dining 14%
Exxon
Shops & Services
11,907 visits/mo
0.0 miles
Sunoco
Shops & Services
8,330 visits/mo
0.4 miles
Domino's Pizza
Dining
4,514 visits/mo
0.1 miles
AutoZone
Shops & Services
4,424 visits/mo
0.3 miles
Exxon
Shops & Services
2,738 visits/mo
0.3 miles
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
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
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- Kal Tires — 12376 Gratiot Ave, Detroit, MI 48205
Frequently Asked Questions
What type of property is this?
Auto shop - Established auto repair shop with real estate in Michigan.
Where is this auto shop located?
The property is located at 13118 Gratiot Avenue Detroit, MI.
What is the asking price?
The asking price for this property is $344,900.
What are key features of this property?
This property features: Established auto repair shop with 40+ years of successful operation.; Turnkey operation with newer tools and equipment included.; High‑traffic, high‑visibility location.
