Two-Story Mixed-Use
For Sale
$600,000
1494 GRATIOT AVE, Detroit, MI 48207
Fully occupied property with substantial MEP work and a distinctive facade.
Property Size2,930 SF
Price / SF$204.78
Days on Market353
Property Features for 1494 GRATIOT AVE
General Information
Standard status
Active
Size
2,930 SF
Property subtype
Industrial
Occupancy
100%
Amenities
3
3939
Building Details
Year Built
19
Buildings
1
Stories
2
Listing Agency:
O'Connor Realty Detroit, LLC
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
(313) 704-2678
Source:
Xome
Added: Sep 16, 2025
Changed: Sep 2
Last Checked: Sep 2 at 1:09PM
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.
This two-story mixed-use building contains 2,930 square feet and occupies a corner position along Gratiot Avenue. The property is fully occupied, with La Ventana Cafe serving as the established commercial occupant. Significant work has been completed on the building’s MEP systems, and the exterior includes a distinctive facade that contributes to its street presence.
The property is located within walking distance of Eastern Market and Downtown Detroit, placing the building near two established city destinations. Its Gratiot Avenue setting and corner configuration provide a clearly defined commercial presence within the surrounding corridor.
The property is located within walking distance of Eastern Market and Downtown Detroit, placing the building near two established city destinations. Its Gratiot Avenue setting and corner configuration provide a clearly defined commercial presence within the surrounding corridor.
Key Highlights
- 2,930‑square‑foot, two‑story mixed‑use building
- Fully occupied with La Ventana Cafe as the commercial occupant
- Corner property along Gratiot Avenue’s commercial corridor
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
$38,666
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
6.44%
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%
$773,320
$773.3K
Cap Rate 7%
$552,371
$552.4K
Cap Rate 9%
$429,622
$429.6K
Market Conditions
NOI Build-Up for 2,930 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
$54.5K $18.60/SF
− Vacancy
−$2.9K −$1.00/SF
EGI
$51.6K $17.60/SF
− OpEx
−$12.9K −$4.40/SF
NOI
$38.7K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$773,320
Cap Rate 7%
$552,371
Cap Rate 9%
$429,622
Alternative Uses
Best Use
Specialty Retail
$552.4K
$483.3K – $644.4K
NOI $38,666 @ 7.0% cap · market cap 6.44%
Second Best
Mixed Use
$497.3K
$435.1K – $580.1K
NOI $34,808 @ 7.0% cap · market cap 5.80%
Theoretical Best
Office A
$646.4K
$565.6K – $754.1K
NOI $45,246 @ 7.0% cap · market cap 7.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,335
Businesses Nearby
13k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
9,554 visits/mo
0.4 miles
Chase Bank
Shops & Services
3,760 visits/mo
0.4 miles
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
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Fully occupied property with substantial MEP work and a distinctive facade.
Where is this mixed-use property located?
The property is located at 1494 GRATIOT AVE Detroit, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: 2,930‑square‑foot, two‑story mixed‑use building; Fully occupied with La Ventana Cafe as the commercial occupant; Corner property along Gratiot Avenue’s commercial corridor
