Comfort Suites Southgate Investment
For Sale
Contact for pricing
18950 Northline Rd, Southgate, MI 48195
Profitable hospitality property in a growing market, Southgate, Michigan.
Property Size46,660 SF
Price / SF$100.73
Days on Market209
Property Features for 18950 Northline Rd
General Information
Standard status
Active
Size
46,660 SF
Total Parking Spaces
120
Property subtype
Hospitality
Zoning
C-2
Building Details
Year Renovated
2018
Buildings
1
Stories
3
Listing Agency:
JDS Real Estate Services, Inc.
Listed By:
Jennifer Stein · License #1001185
Source:
Crexi
Added: Jan 15
Changed: Aug 10
Last Checked: Aug 11 at 4:26PM
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 JDS Real Estate Services, Inc.
Investment Insights
Based on property information with market context.
Comfort Suites Southgate, located at 18950 Northline Rd, Southgate, MI 48195, presents an investment opportunity. This property features amenities and well-maintained facilities. Its location appeals to business and leisure travelers. The property has a strong financial outlook and solid projected performance. Comfort Suites Southgate is eligible to maintain the Comfort Suites brand or can be converted at the new owners discretion. IHG has approved the property for conversion to Garner.
Key Highlights
- Prime investment opportunity in Southgate, MI with strong financial outlook and projected performance.
- Strategically situated in a sought‑after area appealing to business and leisure travelers.
- Eligible to maintain Comfort Suites brand or convert to another brand at new owner's discretion.
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
$182,849
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
3.89%
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%
$3,656,980
$3.7M
Cap Rate 7%
$2,612,129
$2.6M
Cap Rate 9%
$2,031,656
$2.0M
Market Conditions
NOI Build-Up for 46,660 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
$699.9K $15.00/SF
− Vacancy
−$315.0K −$6.75/SF
EGI
$384.9K $8.25/SF
− OpEx
−$202.1K −$4.33/SF
NOI
$182.8K $3.92/SF
Area
Wayne County, MI
Vacancy
45.00%
Lease Rate
$15.00 /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%
$3,656,980
Cap Rate 7%
$2,612,129
Cap Rate 9%
$2,031,656
Alternative Uses
Best Use
Hotel Hospitality
$2.61M
$2.29M – $3.05M
NOI $182,849 @ 7.0% cap · market cap 3.89%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$8.64M
$7.56M – $10.08M
NOI $604,714 @ 7.0% cap · market cap 12.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
841
Businesses Nearby
Explore this area
Business Placement
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Profitable hospitality property in a growing market, Southgate, Michigan.
Where is this hotel located?
The property is located at 18950 Northline Rd Southgate, MI.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: Prime investment opportunity in Southgate, MI with strong financial outlook and projected performance.; Strategically situated in a sought‑after area appealing to business and leisure travelers.; Eligible to maintain Comfort Suites brand or convert to another brand at new owner's discretion.
