Entitled Mixed-Use Redevelopment
For Sale
$7,500,000
16000 W 9 Mile Rd & 23100 Providence Dr, Southfield, MI 48075
Two existing office buildings are entitled for conversion to a mixed-use residential, retail, and self-storage project.
Property Size151,563 SF
Lot Size5.80 Acres
Price / SF$49.48
Days on Market51
Property Features for 16000 W 9 Mile Rd & 23100 Providence Dr
General Information
Standard status
Active
Size
151,563 SF
Class
C
Lot size
5.80 Acres
Property subtype
Multi-Family
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$7,500,000
Building Details
Building Size
151,563 SF
Year Built
1969
Year Renovated
2000
Buildings
2
Units
157
Listing Agency:
P.A. Commercial
(248) 281-9907
Listed By:
Matt Schiffman
Source:
Commercialcafe
Added: Jul 13
Changed: Aug 30
Last Checked: Aug 31 at 1:47PM
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 P.A. Commercial
Investment Insights
Based on property information with market context.
The offering includes two office buildings constructed in 1969, totaling 151,563 square feet across 5.8 acres. The fully entitled redevelopment plan calls for 157 apartment units, approximately 7,247 square feet of retail space, and a 308-unit self-storage component. The existing improvements are positioned for adaptive reuse within a mixed-use residential development.
The property is located in Southfield’s Downtown Development Authority District, across from Henry Ford Providence Southfield Hospital and near Oakland Community College. It also sits close to the 100-acre Northland City Center mixed-use development, M-10, and I-696. The surrounding corridor includes retail, restaurants, other amenities, new housing development, and more than 1,500 residential units recently completed or under construction.
The property is located in Southfield’s Downtown Development Authority District, across from Henry Ford Providence Southfield Hospital and near Oakland Community College. It also sits close to the 100-acre Northland City Center mixed-use development, M-10, and I-696. The surrounding corridor includes retail, restaurants, other amenities, new housing development, and more than 1,500 residential units recently completed or under construction.
Key Highlights
- 151,563‑square‑foot office property on 5.8 acres
- Two office buildings constructed in 1969
- Fully entitled plan for 157 apartment units
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
$521,756
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
6.96%
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%
$10,435,120
$10.4M
Cap Rate 7%
$7,453,657
$7.5M
Cap Rate 9%
$5,797,289
$5.8M
Market Conditions
NOI Build-Up for 151,563 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
$909.4K $6.00/SF
− Vacancy
−$213.7K −$1.41/SF
EGI
$695.7K $4.59/SF
− OpEx
−$173.9K −$1.15/SF
NOI
$521.8K $3.44/SF
Area
Oakland County, MI
Vacancy
23.50%
Lease Rate
$6.00 /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%
$10,435,120
Cap Rate 7%
$7,453,657
Cap Rate 9%
$5,797,289
Alternative Uses
Best Use
Mixed Use
$21.92M
$19.18M – $25.58M
NOI $1,534,575 @ 7.0% cap · market cap 20.46%
Second Best
Office B
$7.45M
$6.52M – $8.70M
NOI $521,756 @ 7.0% cap · market cap 6.96%
Theoretical Best
Specialty Retail
$32.69M
$28.60M – $38.14M
NOI $2,288,359 @ 7.0% cap · market cap 30.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,220
Businesses Nearby
Explore this area
Business Placement
Demographics for 48075, MI
22,967
Population
10,757
Households
2.1
Avg Household Size
42
Median Age
39%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,146
Density / Sq Mi
$67,630
Median Household Income
$43,417
Median Earnings
$1,284
Median Rent
$218,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two existing office buildings are entitled for conversion to a mixed-use residential, retail, and self-storage project.
Where is this mixed-use property located?
The property is located at 16000 W 9 Mile Rd & 23100 Providence Dr Southfield, MI.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: 151,563‑square‑foot office property on 5.8 acres; Two office buildings constructed in 1969; Fully entitled plan for 157 apartment units
