Bank Anchored Investment
For Sale
$1,350,000
13403 W 7 Mile Rd, Detroit, MI 48235
Multi-tenant property with Bank of America and pharmacy tenants.
Property Size6,200 SF
Price / SF$337.50
Days on Market108
Property Features for 13403 W 7 Mile Rd
General Information
Standard status
Active
Size
6,200 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$7,903
Building Details
Building Size
6,200 SF
Year Built
1950
Listing Agency:
Keller Williams Legacy
(313) 228-3777
Listed By:
Nick Jaafar · License #6501403947
(313) 228-3777
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 8 at 3:04PM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This commercial property presents an investment or owner-user opportunity with multiple income streams. Anchored by Bank of America, which has occupied the location for over 10 years and recently renewed its lease for another 60 months, with approximately 65 months remaining plus renewal options. The on-site ATM generates approximately $36,000 annually. A pharmacy tenant has been in place for nearly 12 years, secured under a 72-month lease plus options, and produces approximately $60,000 in annual rent, with 6% escalations after the current term. The property also features a fully built-out approximately 4,000 square foot clinic space that is currently vacant, creating an opportunity for an owner-user looking to operate a clinic or for an investor to lease the space. This suite represents approximately $72,000 per year in potential income, bringing total projected income to $168,000 annually, while current in-place income totals $96,000 annually. The location has a bike score of 64, indicating it is bikeable, a walk score of 53, indicating it is somewhat walkable, and a transit score of 42, indicating some transit options are available.
Key Highlights
- Anchored by Bank of America with a recently renewed lease and 10+ year occupancy history.
- Strong in‑place income of $96,000 annually from Bank of America and Pharmacy tenants.
- Opportunity for increased income with a vacant, fully built‑out ~4,000 SF clinic space, projecting an additional $72,000 annually.
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
$39,421
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
2.92%
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%
$788,420
$788.4K
Cap Rate 7%
$563,157
$563.2K
Cap Rate 9%
$438,011
$438.0K
Market Conditions
NOI Build-Up for 4,000 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
$56.6K $14.16/SF
− Vacancy
−$4.1K −$1.02/SF
EGI
$52.6K $13.14/SF
− OpEx
−$13.1K −$3.29/SF
NOI
$39.4K $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%
$788,420
Cap Rate 7%
$563,157
Cap Rate 9%
$438,011
Alternative Uses
Best Use
Specialty Retail
$563.2K
$492.8K – $657.0K
NOI $39,421 @ 7.0% cap · market cap 2.92%
Second Best
Retail
$505.1K
$442.0K – $589.3K
NOI $35,356 @ 7.0% cap · market cap 2.62%
Theoretical Best
Multifamily LT 5
$567.0K
$496.1K – $661.5K
NOI $39,690 @ 7.0% cap · market cap 2.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
690
Businesses Nearby
34k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 59%
Dining 41%
Family Dollar
Shops & Services
10,691 visits/mo
0.4 miles
BP
Shops & Services
9,341 visits/mo
0.5 miles
Checkers
Dining
7,609 visits/mo
0.1 miles
Little Caesars Pizza
Dining
6,589 visits/mo
0.4 miles
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
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bank - Multi-tenant property with Bank of America and pharmacy tenants.
Where is this bank located?
The property is located at 13403 W 7 Mile Rd Detroit, MI.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Anchored by Bank of America with a recently renewed lease and 10+ year occupancy history.; Strong in‑place income of $96,000 annually from Bank of America and Pharmacy tenants.; Opportunity for increased income with a vacant, fully built‑out ~4,000 SF clinic space, projecting an additional $72,000 annually.
