Corktown Collection: Development
For Sale
$1,799,000
1450 6th package, Detroit, MI 48226
Collection of properties in Corktown historic district for redevelopment.
Property Size7,500 SF
Lot Size0.42 Acres
Price / SF$239.87
Days on Market630
Property Features for 1450 6th package
General Information
Standard status
Active
Size
7,500 SF
Lot size
0.42 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$177
Building Details
Year Built
1906
Listing Agency:
Berkshire Hathaway HomeServices The Loft Warehouse
(313) 658-6400
Listed By:
Jan Dijkers · License #6501338353
(313) 658-6400
Source:
Exitrealty
Added: Nov 19, 2024
Changed: Aug 8
Last Checked: Aug 8 at 12:22PM
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 Berkshire Hathaway HomeServices The Loft Warehouse
Investment Insights
Based on property information with market context.
This collection of properties represents a development opportunity in the heart of Corktown, adjacent to the central business district and Riverfront. The properties, showcasing various architectural styles, include a triangle-shaped vacant land parcel to the north; a brick 4-unit building at 1450 Sixth, which is occupied and features a newer roof and boiler, with additional basement space for a potential fifth unit; vacant land at 1440 Sixth; and the Worker’s Row House at 1430 Sixth, originally a 3-unit tenement house with a fully stabilized roof, structure, and exterior. Additional land behind the Worker's Row House could accommodate additional residential space or a carriage house. The location is walkable to restaurants along Michigan Avenue and one mile from Ford’s Michigan Central Innovation District. The properties, part of the Corktown historic district, are primarily under tax ID 06004564-743, except for the Worker’s Rowhouse at 1430 6th, which is tax ID 06004563. Zoned B6, General Services District, the site allows for residential, commercial, and mixed-use purposes. The property size is 7500 square feet. This site is located in an Opportunity Zone and Neighborhood Enterprise Zone (New/Rehab), offering immediate cash flow potential and reactivation of vacant structures.
Key Highlights
- Opportunity Zone and Neighborhood Enterprise Zone location offers potential tax benefits.
- Package includes vacant land, an occupied 4‑unit building, additional vacant land, and a stabilized historic row house.
- Zoning is B6, General Services District, allowing for residential, commercial, and mixed‑use development.
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
$89,100
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
4.95%
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%
$1,782,000
$1.8M
Cap Rate 7%
$1,272,857
$1.3M
Cap Rate 9%
$990,000
$990.0K
Market Conditions
NOI Build-Up for 7,500 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
$162.0K $21.60/SF
− Vacancy
−$19.4K −$2.59/SF
EGI
$142.6K $19.01/SF
− OpEx
−$53.5K −$7.13/SF
NOI
$89.1K $11.88/SF
Area
Detroit, MI
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,782,000
Cap Rate 7%
$1,272,857
Cap Rate 9%
$990,000
Alternative Uses
Best Use
Mixed Use
$1.27M
$1.11M – $1.49M
NOI $89,100 @ 7.0% cap · market cap 4.95%
Second Best
Apartment 5plus
$1.12M
$983.5K – $1.31M
NOI $78,680 @ 7.0% cap · market cap 4.37%
Theoretical Best
Office A
$1.65M
$1.45M – $1.93M
NOI $115,817 @ 7.0% cap · market cap 6.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,244
Businesses Nearby
Explore this area
Business Placement
Demographics for 48226, MI
6,307
Population
5,160
Households
1.2
Avg Household Size
37
Median Age
53%
College-Educated
93%
High-School Grad
1.2 sq mi
ZIP Area
5,256
Density / Sq Mi
$69,813
Median Household Income
$60,957
Median Earnings
$1,714
Median Rent
$307,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Collection of properties in Corktown historic district for redevelopment.
Where is this commercial land located?
The property is located at 1450 6th package Detroit, MI.
What is the asking price?
The asking price for this property is $1,799,000.
What are key features of this property?
This property features: Opportunity Zone and Neighborhood Enterprise Zone location offers potential tax benefits.; Package includes vacant land, an occupied 4‑unit building, additional vacant land, and a stabilized historic row house.; Zoning is B6, General Services District, allowing for residential, commercial, and mixed‑use development.
