Turnkey Restaurant Opportunity on
For Sale
$749,000
17420 E Warren Ave, Detroit, MI 48224
Freestanding restaurant with commercial kitchen, parking, and high visibility.
Property Size4,980 SF
Price / SF$150.40
Days on Market113
Property Features for 17420 E Warren Ave
General Information
Standard status
Active
Size
4,980 SF
Taxes and HOA fees
Annual Taxes
$5,356
Listing Agency:
Leboursia Realty Group
(313) 861-2626
Listed By:
Quinnon L Martin III · License #6501179804
(313) 861-2626
Source:
Exprealty
Added: Apr 22
Changed: Aug 8
Last Checked: Aug 11 at 10:34AM
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 Leboursia Realty Group
Investment Insights
Based on property information with market context.
This high-visibility, freestanding restaurant property is located on busy E. Warren near Cadieux. The property features a spacious dining area, a commercial kitchen setup, and on-site parking. It is suitable for a sit-down restaurant, carry-out business, or franchise concept. The location is surrounded by established neighborhoods and local businesses, providing strong customer traffic and growth potential. The property is also suitable for catering and banquet facilities. The building size is 4,980 square feet.
Key Highlights
- Turnkey restaurant opportunity, ready for immediate operation.
- High‑visibility location on busy E. Warren, attracting significant customer traffic.
- Spacious dining area and fully equipped commercial kitchen.
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
$65,720
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
8.77%
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%
$1,314,400
$1.3M
Cap Rate 7%
$938,857
$938.9K
Cap Rate 9%
$730,222
$730.2K
Market Conditions
NOI Build-Up for 4,980 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
$92.6K $18.60/SF
− Vacancy
−$5.0K −$1.00/SF
EGI
$87.6K $17.60/SF
− OpEx
−$21.9K −$4.40/SF
NOI
$65.7K $13.20/SF
Area
ZIP 48224
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%
$1,314,400
Cap Rate 7%
$938,857
Cap Rate 9%
$730,222
Alternative Uses
Best Use
Specialty Retail
$938.9K
$821.5K – $1.10M
NOI $65,720 @ 7.0% cap · market cap 8.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.26M
$1.10M – $1.47M
NOI $87,928 @ 7.0% cap · market cap 11.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
16k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 95%
Electronics 5%
Citgo
Shops & Services
7,640 visits/mo
0.5 miles
Family Dollar
Shops & Services
7,485 visits/mo
0.2 miles
Metro by T-Mobile
Electronics
860 visits/mo
0.5 miles
Demographics for 48224, MI
39,633
Population
16,786
Households
2.4
Avg Household Size
33
Median Age
14%
College-Educated
84%
High-School Grad
5.8 sq mi
ZIP Area
6,833
Density / Sq Mi
$42,963
Median Household Income
$30,997
Median Earnings
$1,213
Median Rent
$77,900
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?
Restaurant - Freestanding restaurant with commercial kitchen, parking, and high visibility.
Where is this restaurant located?
The property is located at 17420 E Warren Ave Detroit, MI.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Turnkey restaurant opportunity, ready for immediate operation.; High‑visibility location on busy E. Warren, attracting significant customer traffic.; Spacious dining area and fully equipped commercial kitchen.
