Equipped Auto Repair
For Sale
$415,000
13118 GRATIOT Avenue Detroit City, Wayne, MI 48205
Established automotive service facility with fenced outdoor space, multiple lifts, and separate heating for the shop and lobby.
Property Size4,664 SF
Price / SF$88.98
Days on Market1122
Property Features for 13118 GRATIOT Avenue Detroit City
General Information
Standard status
Active
Size
4,664 SF
Property subtype
Commercial/Industrial
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$1,576
Amenities
4 oversized 10' roll-up doors
5 hydraulic car lifts
Separate forced-air heating units for shop and lobby
Building Details
Year Built
1938
Listing Agency:
Front Page Properties
(313) 877-9020
Listed By:
Christopher Davenport · License #6501301870
(586) 604-4806
Source:
Exitrealty
Added: Aug 10, 2023
Changed: Sep 4
Last Checked: Aug 30 at 5:47AM
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 Front Page Properties
Investment Insights
Based on property information with market context.
This 4,468-square-foot auto repair facility includes four oversized 10-foot roll-up doors, five hydraulic car lifts, and newer tools and equipment. Separate forced-air heating units serve the shop and lobby. The property also includes a fenced lot configured for parking and storage, supporting continued automotive service operations or another vehicle-related use identified in the listing.
Located at 13118 Gratiot Ave in Detroit, Michigan, the property carries B4 zoning and was built in 1945. The established mechanic shop has operated for over 40 years, and the sale includes the real estate and business equipment. The facility is described as suitable for transmission work, brake service, general auto repair, or a used car dealership.
Located at 13118 Gratiot Ave in Detroit, Michigan, the property carries B4 zoning and was built in 1945. The established mechanic shop has operated for over 40 years, and the sale includes the real estate and business equipment. The facility is described as suitable for transmission work, brake service, general auto repair, or a used car dealership.
Key Highlights
- 4,468‑square‑foot auto repair facility on 13118 Gratiot Ave
- Four oversized 10‑foot roll‑up doors
- Five hydraulic car lifts approximately 5–7 years old
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
$24,146
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
5.82%
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%
$482,920
$482.9K
Cap Rate 7%
$344,943
$344.9K
Cap Rate 9%
$268,289
$268.3K
Market Conditions
NOI Build-Up for 4,664 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
$35.8K $7.68/SF
− Vacancy
−$1.3K −$0.28/SF
EGI
$34.5K $7.40/SF
− OpEx
−$10.3K −$2.22/SF
NOI
$24.1K $5.18/SF
Area
Wayne County, MI
Vacancy
3.70%
Lease Rate
$7.68 /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%
$482,920
Cap Rate 7%
$344,943
Cap Rate 9%
$268,289
Alternative Uses
Best Use
Retail
$631.3K
$552.4K – $736.5K
NOI $44,192 @ 7.0% cap · market cap 10.65%
Second Best
Industrial
$344.9K
$301.8K – $402.4K
NOI $24,146 @ 7.0% cap · market cap 5.82%
Theoretical Best
Specialty Retail
$863.5K
$755.6K – $1.01M
NOI $60,445 @ 7.0% cap · market cap 14.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
464
Businesses Nearby
70k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 43%
Shops & Services 37%
Apparel 20%
McDonald's
Dining
17,931 visits/mo
0.2 miles
Family Dollar
Shops & Services
10,202 visits/mo
0.4 miles
BP
Shops & Services
8,076 visits/mo
0.2 miles
Popeyes Louisiana Kitchen
Dining
7,629 visits/mo
0.2 miles
Dollar General
Shops & Services
4,700 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 Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Auto shop - Established automotive service facility with fenced outdoor space, multiple lifts, and separate heating for the shop and lobby.
Where is this auto shop located?
The property is located at 13118 GRATIOT Avenue Detroit City Wayne, MI.
What is the asking price?
The asking price for this property is $415,000.
What are key features of this property?
This property features: 4,468‑square‑foot auto repair facility on 13118 Gratiot Ave; Four oversized 10‑foot roll‑up doors; Five hydraulic car lifts approximately 5–7 years old
