Detroit Motel For
For Sale
Contact for pricing
Pending
20500 James Couzens Fwy, Detroit, MI 48235
101-room motel on prime real estate in Detroit.
Property Size34,065 SF
Days on Market201
Property Features for 20500 James Couzens Fwy
General Information
Standard status
Pending
Size
34,065 SF
Total Parking Spaces
81
Property subtype
Hospitality
Zoning
B-4
Investment Type
Stabilized
Building Details
Year Built
1957
Listing Agency:
The Herish Group
(586) 999-9286
Listed By:
Elias Herish · License #6505406439
Source:
Crexi
Added: Jan 22
Changed: Aug 8
Last Checked: Aug 10 at 1:01PM
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 The Herish Group
Investment Insights
Based on property information with market context.
This is an opportunity to acquire an independently operated, cash-flowing motel with 101 rooms. The property is situated on prime real estate in Detroit, Michigan. It is suitable for an owner-operator or redevelopment. A $406 million redevelopment project is planned adjacent to the property. The property size is 34,065 square feet.
Key Highlights
- Prime real estate location in Detroit, Michigan.
- Cash‑flowing motel with 101 rooms.
- Opportunity for owner‑operator or redevelopment.
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
$229,364
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
6.20%
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%
$4,587,280
$4.6M
Cap Rate 7%
$3,276,629
$3.3M
Cap Rate 9%
$2,548,489
$2.5M
Market Conditions
NOI Build-Up for 34,065 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
$551.9K $16.20/SF
− Vacancy
−$69.0K −$2.03/SF
EGI
$482.9K $14.17/SF
− OpEx
−$253.5K −$7.44/SF
NOI
$229.4K $6.73/SF
Area
ZIP 48235
Vacancy
12.50%
Lease Rate
$16.20 /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%
$4,587,280
Cap Rate 7%
$3,276,629
Cap Rate 9%
$2,548,489
Alternative Uses
Best Use
Hotel Hospitality
$3.28M
$2.87M – $3.82M
NOI $229,364 @ 7.0% cap · market cap 6.20%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$4.83M
$4.23M – $5.63M
NOI $338,010 @ 7.0% cap · market cap 9.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,166
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48235, MI
45,188
Population
20,946
Households
2.2
Avg Household Size
39
Median Age
15%
College-Educated
91%
High-School Grad
6.2 sq mi
ZIP Area
7,288
Density / Sq Mi
$41,011
Median Household Income
$31,545
Median Earnings
$1,151
Median Rent
$79,400
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cranbrook Motel — 20500 James Couzens Fwy, Detroit, MI 48235
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- Lovin Life Club — 19960 James Couzens Fwy, Detroit, MI 48235
- All Things Banquet Hall — 20071 James Couzens Fwy, Detroit, MI 48235
Frequently Asked Questions
What type of property is this?
Motel - 101-room motel on prime real estate in Detroit.
Where is this motel located?
The property is located at 20500 James Couzens Fwy Detroit, MI.
What is the asking price?
The asking price for this property is $3,700,000.
What are key features of this property?
This property features: Prime real estate location in Detroit, Michigan.; Cash‑flowing motel with **101 rooms**.; Opportunity for owner‑operator or redevelopment.
