Mixed-Use Property with Retail
For Sale
Contact for pricing
1528 GRATIOT Avenue, Detroit, MI 48207
Three elevator-access lofts and a ground-floor retail space with commercial kitchen and liquor license option make this building flexible.
Property Size7,248 SF
Price / SF$233.86
Days on Market339
Property Features for 1528 GRATIOT Avenue
General Information
Standard status
Active
Size
7,248 SF
Property subtype
Mixed Use, Multifamily, Land
Additional Details
Business Included
Yes
Highway Access
Yes
Liquor License
Yes
Multifamily Units
3
Building Details
Year Built
1907
Tenancy
Multi
Listing Agency:
Real Estate One
Listed By:
Katherine Kutscher · License #6501449129
Source:
Crexi
Added: Sep 3, 2025
Changed: Jul 10
Last Checked: Aug 6 at 6:42AM
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 Real Estate One
Investment Insights
Based on property information with market context.
This mixed-use building offers four units, with three residential lofts and one ground-floor retail space. The lofts include two bedrooms and two bathrooms each and are accessible by elevator. Architectural details throughout the building include high ceilings, original timber beams, large windows, and exposed brick. The property also includes rooftop access, plus additional lower-level space supported by a convenient dumbwaiter.
Located at 1528 Gratiot Avenue in Detroit’s Eastern Market area, the building is described as within easy walking distance of Eastern Market shops and restaurants. Convenient access to major highways is noted as well.
The ground-floor retail space features a large storefront and a fully equipped commercial kitchen, supporting uses such as a restaurant, bar, café, or gallery. The retail offering includes a liquor license, and the remarks state an option to purchase the liquor license, restaurant fixtures and furniture, and fully furnished lofts—creating a turn-key path for an operator who wants to combine street-level food and beverage activity with upstairs furnished residential rentals.
Located at 1528 Gratiot Avenue in Detroit’s Eastern Market area, the building is described as within easy walking distance of Eastern Market shops and restaurants. Convenient access to major highways is noted as well.
The ground-floor retail space features a large storefront and a fully equipped commercial kitchen, supporting uses such as a restaurant, bar, café, or gallery. The retail offering includes a liquor license, and the remarks state an option to purchase the liquor license, restaurant fixtures and furniture, and fully furnished lofts—creating a turn-key path for an operator who wants to combine street-level food and beverage activity with upstairs furnished residential rentals.
Key Highlights
- Mixed‑use building built in 1907 with three elevator‑access residential lofts and a ground‑floor retail space
- Three lofts each feature 2 bedrooms and 2 bathrooms, currently used as successful Airbnb rentals
- Ground‑floor retail space includes a large storefront, fully equipped commercial kitchen, and an available liquor license option
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
$95,650
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
5.64%
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%
$1,913,000
$1.9M
Cap Rate 7%
$1,366,429
$1.4M
Cap Rate 9%
$1,062,778
$1.1M
Market Conditions
NOI Build-Up for 7,248 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
$134.8K $18.60/SF
− Vacancy
−$7.3K −$1.00/SF
EGI
$127.5K $17.60/SF
− OpEx
−$31.9K −$4.40/SF
NOI
$95.6K $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%
$1,913,000
Cap Rate 7%
$1,366,429
Cap Rate 9%
$1,062,778
Alternative Uses
Best Use
Specialty Retail
$1.37M
$1.20M – $1.59M
NOI $95,650 @ 7.0% cap · market cap 5.64%
Second Best
Retail
$1.28M
$1.12M – $1.49M
NOI $89,273 @ 7.0% cap · market cap 5.27%
Theoretical Best
Office A
$1.60M
$1.40M – $1.87M
NOI $111,926 @ 7.0% cap · market cap 6.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Yes
Highway access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
1,013
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
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three elevator-access lofts and a ground-floor retail space with commercial kitchen and liquor license option make this building flexible.
Where is this mixed-use property located?
The property is located at 1528 GRATIOT Avenue Detroit, MI.
What is the asking price?
The asking price for this property is $1,695,000.
What are key features of this property?
This property features: Mixed‑use building built in 1907 with three elevator‑access residential lofts and a ground‑floor retail space; Three lofts each feature 2 bedrooms and 2 bathrooms, currently used as successful Airbnb rentals; Ground‑floor retail space includes a large storefront, fully equipped commercial kitchen, and an available liquor license option
