Turnkey Automotive Parts Dismantling
For Sale
$2,499,900
20500 Mound Rd, Detroit, MI 48234
For sale as a turnkey package with the real estate, business operations, and all inventory included.
Property Size12,500 SF
Price / SF$199.99
Days on Market157
Property Features for 20500 Mound Rd
General Information
Standard status
Active
Size
12,500 SF
Property subtype
Industrial
Additional Details
Business Included
Yes
Amenities
3
120158
Building Details
Year Built
19
Listing Agency:
(586) 404-3239
Listed By:
Summit Union Real Estate
(586) 404-3239
Source:
Xome
Added: Mar 11
Changed: Aug 12
Last Checked: Aug 13 at 3:08AM
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 offering presents an established automotive dismantling and parts business along with the real estate, sold as a single turnkey package. The sale includes the business and all inventory necessary to operate immediately, with the inventory specifically identified as included in the transaction.
The property is listed at 20500 Mound Road Unit SourceFi, Detroit, MI 48234. The seller notes long-term operation history and includes options to acquire under land contract terms, depending on loan origination and buyer qualifications.
This is a comprehensive buy-in for an owner-operator or investor seeking a hands-on automotive parts and dismantling operation with the operational components and inventory included in the purchase.
The property is listed at 20500 Mound Road Unit SourceFi, Detroit, MI 48234. The seller notes long-term operation history and includes options to acquire under land contract terms, depending on loan origination and buyer qualifications.
This is a comprehensive buy-in for an owner-operator or investor seeking a hands-on automotive parts and dismantling operation with the operational components and inventory included in the purchase.
Key Highlights
- For sale as a turnkey package including the real estate, business operations, and all inventory included
- Automotive dismantling and parts business with a stated inventory value of $950,000 included in the sale
- Lot dimensions: 120158
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
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
249
Businesses Nearby
34k
Monthly Visits Nearby
Well-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?
Auto shop - For sale as a turnkey package with the real estate, business operations, and all inventory included.
Where is this auto shop located?
The property is located at 20500 Mound Rd 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: For sale as a turnkey package including the real estate, business operations, and all inventory included; Automotive dismantling and parts business with a stated inventory value of $950,000 included in the sale; Lot dimensions: 120158
