Drive-Through Restaurant
New
For Sale
$1,200,000
18902 Northline Rd, Southgate, MI 48195
Existing drive-through improvements with parking and immediate I-75 access.
Property Size3,426 SF
Days on Market1
Property Features for 18902 Northline Rd
General Information
Standard status
Active
Size
3,426 SF
Property subtype
Commercial
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$33,000
Building Details
Building Size
3,426 SF
Year Built
2000
Listing Agency:
CENTURY 21 Curran & Oberski Dearborn Heights
Listed By:
Ali T Charara · License #6501340600
(313) 274-7200
Source:
Elliman
Added: Sep 4
Last Checked: Sep 4 at 2:17PM
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 CENTURY 21 Curran & Oberski Dearborn Heights
Investment Insights
Based on property information with market context.
This drive-through restaurant property at 18902 Northline Rd includes an existing quick-service restaurant layout with drive-through improvements and ample parking. The building was constructed in 2000 and formerly operated as a Wendy’s.
The site is positioned just off I-75 along a north-south commercial corridor. Surrounding uses include national retailers, local businesses, and multiple hotels, creating a varied commercial setting with nearby lodging and retail activity. The property also offers access from the surrounding road network and is configured for drive-through restaurant operations.
The site is positioned just off I-75 along a north-south commercial corridor. Surrounding uses include national retailers, local businesses, and multiple hotels, creating a varied commercial setting with nearby lodging and retail activity. The property also offers access from the surrounding road network and is configured for drive-through restaurant operations.
Key Highlights
- Fully configured drive‑through restaurant property
- Former Wendy’s location
- Constructed in 2000
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
$44,401
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
3.70%
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%
$888,020
$888.0K
Cap Rate 7%
$634,300
$634.3K
Cap Rate 9%
$493,344
$493.3K
Market Conditions
NOI Build-Up for 3,426 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
$61.7K $18.00/SF
− Vacancy
−$2.5K −$0.72/SF
EGI
$59.2K $17.28/SF
− OpEx
−$14.8K −$4.32/SF
NOI
$44.4K $12.96/SF
Area
Wayne County, MI
Vacancy
4.00%
Lease Rate
$18.00 /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%
$888,020
Cap Rate 7%
$634,300
Cap Rate 9%
$493,344
Alternative Uses
Best Use
Specialty Retail
$634.3K
$555.0K – $740.0K
NOI $44,401 @ 7.0% cap · market cap 3.70%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
841
Businesses Nearby
84k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 24%
Hotels & Casinos 8%
Home Improvements & Furnishings 1%
McDonald's
Dining
26,477 visits/mo
0.1 miles
Sunoco
Shops & Services
18,815 visits/mo
0.1 miles
Taco Bell
Dining
10,816 visits/mo
0.1 miles
Wendy's
Dining
9,647 visits/mo
0.0 miles
Burger King
Dining
9,192 visits/mo
0.2 miles
Demographics for 48195, MI
30,014
Population
13,033
Households
2.3
Avg Household Size
42
Median Age
21%
College-Educated
89%
High-School Grad
6.9 sq mi
ZIP Area
4,350
Density / Sq Mi
$64,635
Median Household Income
$43,368
Median Earnings
$1,102
Median Rent
$165,400
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Existing drive-through improvements with parking and immediate I-75 access.
Where is this drive through restaurant located?
The property is located at 18902 Northline Rd Southgate, MI.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Fully configured drive‑through restaurant property; Former Wendy’s location; Constructed in 2000
