Former Restaurant in Old
For Sale
$695,000
21640 Grand River Avenue, Redford, MI 48219
Redford location ideal for retail or medical use.
Property Size2,317 SF
Days on Market169
Property Features for 21640 Grand River Avenue
General Information
Standard status
Active
Size
2,317 SF
Property subtype
Retail
Building Details
Building Size
2,317 SF
Year Built
1988
Listing Agency:
SVN Cohn Commercial Properties
(248) 818-0010
Listed By:
Harry Cohn · License #07986251
(248) 818-0010
Source:
Svn
Added: Mar 6
Changed: Aug 20
Last Checked: Aug 22 at 4:49AM
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 SVN Cohn Commercial Properties
Investment Insights
Based on property information with market context.
Located at the intersection of West Grand River Avenue and Greydale Avenue in Redford/Detroit, this property is the former site of a McDonald's restaurant in the heart of Old Redford. The property is suitable for retail or medical use. The drive-thru is still in operation.
Key Highlights
- Operating drive‑thru.
- Ideal for retail or medical use.
- Located in the heart of Old Redford.
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
$28,538
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
4.11%
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%
$570,760
$570.8K
Cap Rate 7%
$407,686
$407.7K
Cap Rate 9%
$317,089
$317.1K
Market Conditions
NOI Build-Up for 2,317 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
$43.1K $18.60/SF
− Vacancy
−$2.3K −$1.00/SF
EGI
$40.8K $17.60/SF
− OpEx
−$12.2K −$5.28/SF
NOI
$28.5K $12.32/SF
Area
ZIP 48219
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%
$570,760
Cap Rate 7%
$407,686
Cap Rate 9%
$317,089
Alternative Uses
Best Use
Retail
$407.7K
$356.7K – $475.6K
NOI $28,538 @ 7.0% cap · market cap 4.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$475.9K
$416.4K – $555.2K
NOI $33,313 @ 7.0% cap · market cap 4.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
428
Businesses Nearby
133k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 55%
Shops & Services 29%
Dining 12%
Apparel 3%
Meijer
Groceries
73,288 visits/mo
0.3 miles
Dollar Tree
Shops & Services
14,060 visits/mo
0.3 miles
Wendy's
Dining
12,475 visits/mo
0.3 miles
Meijer Gas Station
Shops & Services
9,012 visits/mo
0.2 miles
Family Dollar
Shops & Services
6,719 visits/mo
0.3 miles
Demographics for 48219, MI
46,811
Population
20,815
Households
2.2
Avg Household Size
37
Median Age
13%
College-Educated
87%
High-School Grad
8.4 sq mi
ZIP Area
5,573
Density / Sq Mi
$43,882
Median Household Income
$31,187
Median Earnings
$1,037
Median Rent
$84,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Redford location ideal for retail or medical use.
Where is this retail space located?
The property is located at 21640 Grand River Avenue Redford, MI.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: Operating drive‑thru.; Ideal for retail or medical use.; Located in the heart of Old Redford.
