Established Auto Parts Business For
For Sale
$2,499,900
20500 Mound Road, Detroit, MI 48234
Turnkey auto parts business with real estate and inventory included.
Property Size12,500 SF
Price / SF$199.99
Days on Market161
Property Features for 20500 Mound Road
General Information
Standard status
Active
Size
12,500 SF
Property subtype
Commercial
Zoning
Heavy Industry
Building Details
Building Size
12,500 SF
Year Built
1948
Stories
2
Listing Agency:
Summit Union Real Estate
(586) 404-3239
Listed By:
Nathaniel Korkis
(586) 404-3239
Source:
Homesforsaleinmich
Added: Mar 18
Changed: Aug 23
Last Checked: Aug 24 at 2:27PM
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 Summit Union Real Estate
Investment Insights
Based on property information with market context.
This property offers the opportunity to acquire an established automotive dismantling and parts business, including the real estate, the business itself, and all inventory, which is valued at $950,000 and is included in the sale. The property is a turnkey operation, providing all necessary components for continued operation. It is suitable for an owner-operator or investor seeking a profitable business with a strong operating history. The property is located at 20500 Mound Rd, Detroit, MI. The property size is 12,500 square feet. Land contract terms may be available depending on origination and buyer qualifications.
Key Highlights
- Established and Profitable Automotive Dismantling and Parts Business
- Real Estate Included in Sale
- Inventory Valued at $950,000 Included**
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
$153,962
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
6.16%
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%
$3,079,240
$3.1M
Cap Rate 7%
$2,199,457
$2.2M
Cap Rate 9%
$1,710,689
$1.7M
Market Conditions
NOI Build-Up for 12,500 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
$232.5K $18.60/SF
− Vacancy
−$12.6K −$1.00/SF
EGI
$219.9K $17.60/SF
− OpEx
−$66.0K −$5.28/SF
NOI
$154.0K $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%
$3,079,240
Cap Rate 7%
$2,199,457
Cap Rate 9%
$1,710,689
Alternative Uses
Best Use
Retail
$2.20M
$1.92M – $2.57M
NOI $153,962 @ 7.0% cap · market cap 6.16%
Second Best
Industrial
$868.5K
$760.0K – $1.01M
NOI $60,796 @ 7.0% cap · market cap 2.43%
Theoretical Best
Office A
$2.76M
$2.41M – $3.22M
NOI $193,028 @ 7.0% cap · market cap 7.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
249
Businesses Nearby
34k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 65%
Shops & Services 35%
Tim Hortons
Dining
11,979 visits/mo
0.1 miles
Wendy's
Dining
10,401 visits/mo
0.1 miles
Sunoco
Shops & Services
5,718 visits/mo
0.0 miles
AutoZone
Shops & Services
3,803 visits/mo
0.1 miles
Comerica Bank
Shops & Services
2,345 visits/mo
0.0 miles
Demographics for 48234, MI
31,442
Population
15,688
Households
2
Avg Household Size
36
Median Age
11%
College-Educated
84%
High-School Grad
7.8 sq mi
ZIP Area
4,031
Density / Sq Mi
$36,473
Median Household Income
$31,587
Median Earnings
$965
Median Rent
$57,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Automotive property - Turnkey auto parts business with real estate and inventory included.
Where is this automotive property located?
The property is located at 20500 Mound Road Detroit, MI.
What is the asking price?
The asking price for this property is $2,499,900.
What are key features of this property?
This property features: Established and Profitable Automotive Dismantling and Parts Business; Real Estate Included in Sale; Inventory Valued at $950,000 Included**
