Turnkey Restaurant Opportunity on
For Sale
Contact for pricing
Pending
20050 Livernois, Detroit, MI 48221
Prime restaurant property on Detroit's Avenue of Fashion.
Property Size4,000 SF
Days on Market694
Property Features for 20050 Livernois
General Information
Standard status
Pending
Size
4,000 SF
Class
A
Property subtype
Retail
Zoning
B2
Lease Type
NNN
Building Details
Year Built
1959
Year Renovated
2022
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Encore Real Estate Investment Services
Listed By:
Kishon Harbert · License #MI 6501402939
(313) 919-1935
Source:
Crexi
Added: Oct 12, 2024
Changed: Aug 27
Last Checked: Sep 2 at 8:22PM
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 Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
Located on the Avenue of Fashion, the property at 20050 Livernois offers 4,000 square feet of space, including an enclosed patio. The single-story building is ideally suited for a turnkey restaurant. The Avenue of Fashion, situated on Livernois between 7 Mile and 8 Mile, is known as one of the largest shopping districts of Black-owned businesses in the United States. The building features a mural that reads "Black Dollars Matter". The property, with its spacious dining area and patio, offers significant potential in an area known for its rich cultural scene and Black-owned businesses. The Avenue of Fashion has historic significance, featuring over 100 storefronts and attracting both locals and tourists.
Key Highlights
- Turnkey restaurant opportunity due to existing buildout.
- Located on the Avenue of Fashion, a prominent shopping district for Black‑owned businesses.
- Spacious 4,000 sq ft property (including enclosed patio).
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
$52,787
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
3.20%
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%
$1,055,740
$1.1M
Cap Rate 7%
$754,100
$754.1K
Cap Rate 9%
$586,522
$586.5K
Market Conditions
NOI Build-Up for 4,000 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
$74.4K $18.60/SF
− Vacancy
−$4.0K −$1.00/SF
EGI
$70.4K $17.60/SF
− OpEx
−$17.6K −$4.40/SF
NOI
$52.8K $13.20/SF
Area
Detroit, MI
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%
$1,055,740
Cap Rate 7%
$754,100
Cap Rate 9%
$586,522
Alternative Uses
Best Use
Specialty Retail
$754.1K
$659.8K – $879.8K
NOI $52,787 @ 7.0% cap · market cap 3.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$882.4K
$772.1K – $1.03M
NOI $61,769 @ 7.0% cap · market cap 3.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
608
Businesses Nearby
60k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 59%
Dining 41%
Wendy's
Dining
13,869 visits/mo
0.4 miles
BP
Shops & Services
10,611 visits/mo
0.4 miles
Bank of America
Shops & Services
7,666 visits/mo
0.4 miles
Shell
Shops & Services
7,209 visits/mo
0.5 miles
KFC
Dining
6,057 visits/mo
0.5 miles
Demographics for 48221, MI
38,204
Population
17,452
Households
2.2
Avg Household Size
38
Median Age
29%
College-Educated
90%
High-School Grad
5.2 sq mi
ZIP Area
7,347
Density / Sq Mi
$55,583
Median Household Income
$37,019
Median Earnings
$1,174
Median Rent
$138,700
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Prime restaurant property on Detroit's Avenue of Fashion.
Where is this conventional restaurant located?
The property is located at 20050 Livernois 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: Turnkey restaurant opportunity due to existing buildout.; Located on the Avenue of Fashion, a prominent shopping district for Black‑owned businesses.; Spacious 4,000 sq ft property (including enclosed patio).
