Automotive Repair
For Sale
$899,999
20488 John R St, Detroit, MI 48203
Established independent operation with full-service repair capabilities and advanced diagnostic equipment.
Property Size3,450 SF
Price / SF$260.87
Days on Market103
Property Features for 20488 John R St
General Information
Standard status
Active
Size
3,450 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Building Details
Year Built
2005
Listing Agency:
XPI Realty
(313) 515-7653
Listed By:
Ben Bawazir · License #6501359047
Source:
Vmrealestatemichigan
Added: May 20
Changed: Aug 29
Last Checked: Aug 29 at 7:55PM
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 XPI Realty
Investment Insights
Based on property information with market context.
This automotive repair property combines an operating service business with the underlying real estate at 20488 John R St in Detroit. The facility was built in 2005 and supports a broad range of vehicle maintenance and repair work, including brake service, tires, suspension, electrical systems, engines, air conditioning, exhaust, wheel alignments, and routine maintenance.
The independent operation has been family-owned for more than 21 years and is described as a full-service shop with advanced diagnostic capabilities. The property serves as a single destination for multiple automotive service needs. Business activity and property access are handled confidentially, with inquiries and showings arranged by appointment.
The independent operation has been family-owned for more than 21 years and is described as a full-service shop with advanced diagnostic capabilities. The property serves as a single destination for multiple automotive service needs. Business activity and property access are handled confidentially, with inquiries and showings arranged by appointment.
Key Highlights
- Business sale includes the automotive repair operation and real estate
- Family‑owned independent shop operating for more than 21 years
- 3,450 property size; facility constructed in 2005
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
$42,493
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
4.72%
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%
$849,860
$849.9K
Cap Rate 7%
$607,043
$607.0K
Cap Rate 9%
$472,144
$472.1K
Market Conditions
NOI Build-Up for 3,450 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
$64.2K $18.60/SF
− Vacancy
−$3.5K −$1.00/SF
EGI
$60.7K $17.60/SF
− OpEx
−$18.2K −$5.28/SF
NOI
$42.5K $12.32/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
30.00%
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%
$849,860
Cap Rate 7%
$607,043
Cap Rate 9%
$472,144
Alternative Uses
Best Use
Retail
$607.0K
$531.2K – $708.2K
NOI $42,493 @ 7.0% cap · market cap 4.72%
Second Best
Industrial
$239.7K
$209.8K – $279.7K
NOI $16,780 @ 7.0% cap · market cap 1.86%
Theoretical Best
Office A
$761.1K
$666.0K – $887.9K
NOI $53,276 @ 7.0% cap · market cap 5.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
380
Businesses Nearby
18k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon
Shops & Services
10,245 visits/mo
0.0 miles
Sunoco
Shops & Services
6,373 visits/mo
0.1 miles
Valvoline Instant Oil Change
Shops & Services
1,321 visits/mo
0.1 miles
Avis Budget Car Rental
Shops & Services
465 visits/mo
0.3 miles
Demographics for 48203, MI
22,168
Population
13,591
Households
1.6
Avg Household Size
39
Median Age
19%
College-Educated
85%
High-School Grad
8.2 sq mi
ZIP Area
2,703
Density / Sq Mi
$35,108
Median Household Income
$28,364
Median Earnings
$799
Median Rent
$76,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
- P & J Towing and Recovery — 20000 John R St, Detroit, MI 48203
- Legend Motors Collision & Body Shop of Detroit — 19901 John R St, Highland Park, MI 48203
- Tee's Garage — 20000 John R St, Detroit, MI 48203
- Quality Glass & Mirror — 19969 John R St, Detroit, MI 48203
- First Choice Auto — 631 E State Fair Ave, Highland Park, MI 48203
Frequently Asked Questions
What type of property is this?
Auto shop - Established independent operation with full-service repair capabilities and advanced diagnostic equipment.
Where is this auto shop located?
The property is located at 20488 John R St Detroit, MI.
What is the asking price?
The asking price for this property is $899,999.
What are key features of this property?
This property features: Business sale includes the automotive repair operation and real estate; Family‑owned independent shop operating for more than 21 years; 3,450 property size; facility constructed in 2005
