Renovated Creative
For Sale
$3,950,000
1938 FRANKLIN ST, Detroit, MI 48207
Light-filled workspace combines industrial character with updated building systems and shared amenities.
Property Size28,078 SF
Price / SF$140.68
Days on Market693
Property Features for 1938 FRANKLIN ST
General Information
Standard status
Active
Size
28,078 SF
Elevators
Yes
Property subtype
Industrial
Amenities
conference room
kitchenette
bike storage
high-speed wifi
private shower room
3
Rubber
200120
Building Details
Construction
brick and beams
Tenancy
Multi
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
(313) 704-2678
Source:
Xome
Added: Oct 18, 2024
Changed: Sep 9
Last Checked: Sep 9 at 3:23PM
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 O'Connor Realty Detroit, LLC
Investment Insights
Based on property information with market context.
The Elevator Building provides 28,078 square feet of renovated creative workspace in Detroit’s East Riverfront. The interior combines abundant natural light, high ceilings, exposed brick, and exposed beams with updated bathrooms and contemporary building systems. Capital improvements include new roof systems, energy-efficient windows, and new HVAC units.
Shared amenities include a conference room, kitchenette, bike storage, high-speed Wi-Fi, and a private shower room. The property is near the Riverwalk and Dequindre Cut, with access toward downtown, Eastern Market, and Lafayette Park by foot, bicycle, or scooter. The building supports a community of creative professionals working across media, architecture, fashion, wellness, and community services.
Shared amenities include a conference room, kitchenette, bike storage, high-speed Wi-Fi, and a private shower room. The property is near the Riverwalk and Dequindre Cut, with access toward downtown, Eastern Market, and Lafayette Park by foot, bicycle, or scooter. The building supports a community of creative professionals working across media, architecture, fashion, wellness, and community services.
Key Highlights
- 28,078‑square‑foot renovated creative workspace
- New roof systems, energy‑efficient windows, and new HVAC units
- High ceilings, exposed brick, exposed beams, and ample natural light
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
$284,457
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
7.20%
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%
$5,689,140
$5.7M
Cap Rate 7%
$4,063,671
$4.1M
Cap Rate 9%
$3,160,633
$3.2M
Market Conditions
NOI Build-Up for 28,078 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
$491.9K $17.52/SF
− Vacancy
−$112.7K −$4.01/SF
EGI
$379.3K $13.51/SF
− OpEx
−$94.8K −$3.38/SF
NOI
$284.5K $10.13/SF
Area
Detroit, MI
Vacancy
22.90%
Lease Rate
$17.52 /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%
$5,689,140
Cap Rate 7%
$4,063,671
Cap Rate 9%
$3,160,633
Alternative Uses
Best Use
Office B
$4.06M
$3.56M – $4.74M
NOI $284,457 @ 7.0% cap · market cap 7.20%
Second Best
Flex RnD
$2.88M
$2.52M – $3.36M
NOI $201,488 @ 7.0% cap · market cap 5.10%
Theoretical Best
Office A
$6.19M
$5.42M – $7.23M
NOI $433,588 @ 7.0% cap · market cap 10.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
942
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Detroit, MI
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Frequently Asked Questions
What type of property is this?
Creative space - Light-filled workspace combines industrial character with updated building systems and shared amenities.
Where is this creative space located?
The property is located at 1938 FRANKLIN ST Detroit, MI.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: 28,078‑square‑foot renovated creative workspace; New roof systems, energy‑efficient windows, and new HVAC units; High ceilings, exposed brick, exposed beams, and ample natural light
