Corner Building with Drive-Up
For Sale
$229,000
20640 Van Born Rd, Dearborn Heights, MI 48125
Well-maintained corner building with drive-up, paved parking, and loading.
Property Size1,569 SF
Lot Size0.16 Acres
Days on Market165
Property Features for 20640 Van Born Rd
General Information
Standard status
Active
Size
1,569 SF
Lot size
0.16 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$3,570
Building Details
Building Size
1,569 SF
Year Built
1960
Listing Agency:
Real Estate One-Dbn Hts/Dbn
(313) 565-3200
Listed By:
Ali M Shariff · License #6501303931
(313) 565-3200
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 2:57PM
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 Real Estate One-Dbn Hts/Dbn
Investment Insights
Based on property information with market context.
This well-maintained, stand-alone corner building features paved parking for eight vehicles, along with front and rear paved delivery and loading areas. A drive-up window is present on the building. The roof was replaced in 2020. The boiler passed its annual 2020 state inspection and received new gaskets, and all safety controls were maintained. The property is currently occupied by a long-term tenant who would prefer to continue leasing.
Key Highlights
- Well‑maintained stand‑alone building.
- Long‑term tenant in place (potential for immediate income).
- New roof installed in 2020.
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
$20,334
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
8.88%
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%
$406,680
$406.7K
Cap Rate 7%
$290,486
$290.5K
Cap Rate 9%
$225,933
$225.9K
Market Conditions
NOI Build-Up for 1,569 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
$28.2K $18.00/SF
− Vacancy
−$1.1K −$0.72/SF
EGI
$27.1K $17.28/SF
− OpEx
−$6.8K −$4.32/SF
NOI
$20.3K $12.96/SF
Area
Wayne County, MI
Vacancy
4.00%
Lease Rate
$18.00 /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%
$406,680
Cap Rate 7%
$290,486
Cap Rate 9%
$225,933
Alternative Uses
Best Use
Specialty Retail
$290.5K
$254.2K – $338.9K
NOI $20,334 @ 7.0% cap · market cap 8.88%
Second Best
Retail
$212.4K
$185.8K – $247.8K
NOI $14,867 @ 7.0% cap · market cap 6.49%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
252
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
7-Eleven
Shops & Services
10,242 visits/mo
0.4 miles
Tim Hortons
Dining
8,950 visits/mo
0.4 miles
Mobil
Shops & Services
3,743 visits/mo
0.4 miles
Sunoco
Shops & Services
3,016 visits/mo
0.4 miles
Citgo
Shops & Services
2,903 visits/mo
0.5 miles
Demographics for 48125, MI
22,070
Population
8,791
Households
2.5
Avg Household Size
38
Median Age
16%
College-Educated
87%
High-School Grad
4.0 sq mi
ZIP Area
5,518
Density / Sq Mi
$59,534
Median Household Income
$38,241
Median Earnings
$1,298
Median Rent
$119,300
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - Well-maintained corner building with drive-up, paved parking, and loading.
Where is this storefront property located?
The property is located at 20640 Van Born Rd Dearborn Heights, MI.
What is the asking price?
The asking price for this property is $229,000.
What are key features of this property?
This property features: Well‑maintained stand‑alone building.; Long‑term tenant in place (potential for immediate income).; New roof installed in 2020.
