Brick Restaurant
New
For Sale
$450,000
19840 Kelly Rd, Harper Woods, MI 48225
Brick commercial space on Kelly Road with a kitchen-and-dining layout for restaurant use.
Property Size2,032 SF
Price / SF$221.46
Days on Market4
Property Features for 19840 Kelly Rd
General Information
Standard status
Active
Size
2,032 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$7,302
Building Details
Building Size
2,032 SF
Year Built
1947
Construction
brick
Listing Agency:
RK Real Estate LLC
(586) 229-1500
Listed By:
Gjon Isufaj
(586) 229-1500
Source:
Elliman
Added: Aug 5
Changed: Aug 6
Last Checked: Aug 8 at 1:50PM
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 RK Real Estate LLC
Investment Insights
Based on property information with market context.
This 2,032-square-foot brick commercial space was built in 1947 and is configured for restaurant operations, with areas suited to kitchen and dining functions. The existing layout provides a foundation for a restaurant or food-service concept, subject to verification of municipal zoning, seating, and licensing requirements.
The property is located on Kelly Road in Harper Woods, with high daily drive-by traffic and street frontage identified in the property information. WalkScore is 44, with a car-dependent designation; BikeScore is 41, described as somewhat bikeable, and TransitScore is 41, reflecting some available transit.
The property is located on Kelly Road in Harper Woods, with high daily drive-by traffic and street frontage identified in the property information. WalkScore is 44, with a car-dependent designation; BikeScore is 41, described as somewhat bikeable, and TransitScore is 41, reflecting some available transit.
Key Highlights
- ~2,032 sq. ft. brick commercial space
- Restaurant‑oriented layout with kitchen and dining areas
- High daily drive‑by traffic on Kelly Road
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
$26,335
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
5.85%
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%
$526,700
$526.7K
Cap Rate 7%
$376,214
$376.2K
Cap Rate 9%
$292,611
$292.6K
Market Conditions
NOI Build-Up for 2,032 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
$36.6K $18.00/SF
− Vacancy
−$1.5K −$0.72/SF
EGI
$35.1K $17.28/SF
− OpEx
−$8.8K −$4.32/SF
NOI
$26.3K $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%
$526,700
Cap Rate 7%
$376,214
Cap Rate 9%
$292,611
Alternative Uses
Best Use
Specialty Retail
$376.2K
$329.2K – $438.9K
NOI $26,335 @ 7.0% cap · market cap 5.85%
Second Best
Industrial
$150.3K
$131.5K – $175.3K
NOI $10,520 @ 7.0% cap · market cap 2.34%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
752
Businesses Nearby
128k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 50%
Shops & Services 28%
Dining 16%
Apparel 6%
The Home Depot
Home Improvements & Furnishings
37,965 visits/mo
0.2 miles
Lowe's
Home Improvements & Furnishings
25,764 visits/mo
0.5 miles
McDonald's
Dining
20,549 visits/mo
0.0 miles
Dollar Tree
Shops & Services
15,128 visits/mo
0.5 miles
Family Dollar
Shops & Services
9,832 visits/mo
0.1 miles
Demographics for 48225, MI
15,862
Population
6,271
Households
2.5
Avg Household Size
37
Median Age
23%
College-Educated
93%
High-School Grad
2.7 sq mi
ZIP Area
5,875
Density / Sq Mi
$59,248
Median Household Income
$40,558
Median Earnings
$1,304
Median Rent
$140,800
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?
Conventional restaurant - Brick commercial space on Kelly Road with a kitchen-and-dining layout for restaurant use.
Where is this conventional restaurant located?
The property is located at 19840 Kelly Rd Harper Woods, MI.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: ~2,032 sq. ft. brick commercial space; Restaurant‑oriented layout with kitchen and dining areas; High daily drive‑by traffic on Kelly Road
