Renovated 25-Unit
For Sale
Contact for pricing
16866 Telegraph Rd, Detroit, MI 48219
Renovated full-service property on Telegraph Road with R5 zoning.
Property Size12,474 SF
Lot Size0.71 Acres
Price / SF$132.28
Days on Market354
Property Features for 16866 Telegraph Rd
General Information
Standard status
Active
Size
12,474 SF
Total Parking Spaces
44
Lot size
0.71 Acres
Property subtype
Hospitality
Investment Type
Value Add
Building Details
Year Built
1966
Year Renovated
2024
Listing Agency:
The Jonna Group at Colliers International
(249) 540-1000
Listed By:
Simon Jonna · License #MI 6501357188
Source:
Crexi
Added: Sep 12, 2025
Changed: Aug 30
Last Checked: Jul 17 at 1:19AM
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 The Jonna Group at Colliers International
Investment Insights
Based on property information with market context.
This renovated 25-unit motel contains 12,474 square feet on a 0.71-acre parcel. The full-service property is positioned for motel operations and carries R5 zoning.
Located on Telegraph Road in Detroit, the property is near highways, retail, and employment hubs. Its 25-unit configuration and renovated condition provide a defined hospitality layout for an owner-operator or other motel-focused user.
Located on Telegraph Road in Detroit, the property is near highways, retail, and employment hubs. Its 25-unit configuration and renovated condition provide a defined hospitality layout for an owner-operator or other motel-focused user.
Key Highlights
- 25‑unit motel with 12,474 SF of building area
- Renovated full‑service property
- Situated on 0.71 acres
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
$75,084
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
4.55%
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%
$1,501,680
$1.5M
Cap Rate 7%
$1,072,629
$1.1M
Cap Rate 9%
$834,267
$834.3K
Market Conditions
NOI Build-Up for 12,474 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
$179.6K $14.40/SF
− Vacancy
−$21.6K −$1.73/SF
EGI
$158.1K $12.67/SF
− OpEx
−$83.0K −$6.65/SF
NOI
$75.1K $6.02/SF
Area
ZIP 48219
Vacancy
12.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
52.50%
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%
$1,501,680
Cap Rate 7%
$1,072,629
Cap Rate 9%
$834,267
Alternative Uses
Best Use
Hotel Hospitality
$1.07M
$938.6K – $1.25M
NOI $75,084 @ 7.0% cap · market cap 4.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.56M
$2.24M – $2.99M
NOI $179,348 @ 7.0% cap · market cap 10.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
258
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48219, MI
46,811
Population
20,815
Households
2.2
Avg Household Size
37
Median Age
13%
College-Educated
87%
High-School Grad
8.4 sq mi
ZIP Area
5,573
Density / Sq Mi
$43,882
Median Household Income
$31,187
Median Earnings
$1,037
Median Rent
$84,500
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Detroit Got Talent Performance Hall — 24409 W McNichols Rd, Detroit, MI 48219
- Motel — 16840 Telegraph Rd, Detroit, MI 48219
- Velvet Suites — 16920 Telegraph Rd, Detroit, MI 48219
- A Victory Inn & Suites — 17729 Telegraph Rd, Detroit, MI 48219
- Rouge River Inn — 22755 Grand River Ave, Detroit, MI 48219
Frequently Asked Questions
What type of property is this?
Motel - Renovated full-service property on Telegraph Road with R5 zoning.
Where is this motel located?
The property is located at 16866 Telegraph Rd Detroit, MI.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: 25‑unit motel with 12,474 SF of building area; Renovated full‑service property; Situated on 0.71 acres
