Mixed-Use Development
For Sale
$675,000
2426 Michigan Avenue, Detroit, MI 48216
For-sale mixed-use site at 2426 Michigan Avenue, offered to complete or reimagine the Steelhaus concept.
Property Size4,640 SF
Days on Market216
Property Features for 2426 Michigan Avenue
General Information
Standard status
Active
Size
4,640 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$360
Building Details
Building Size
4,640 SF
Year Built
2023
Stories
2
Listing Agency:
Nika & Co
(248) 266-2566
Listed By:
Vadim Oss · License #6505433305
(248) 266-2566
Source:
Carolbollo
Added: Jan 7
Changed: Aug 8
Last Checked: Aug 10 at 11:00AM
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 Nika & Co
Investment Insights
Based on property information with market context.
Located in Corktown, 2426 Michigan Avenue is being offered for sale with the intent to either complete the original Steelhaus vision or reimagine the site with a new development concept. The property’s positioning supports commercial or mixed-use plans, including boutique retail, creative office, hospitality, or residential integration.
The site sits at an intersection and is described as being near Downtown Detroit, Michigan Central Station, and major freeway access. These factors are intended to support connectivity to established employment and transit hubs while maintaining flexibility for redevelopment.
Overall, the offering is presented as a development opportunity where the groundwork for a mixed-use concept is already in place, with the buyer able to move forward with the Steelhaus completion or pursue an alternate vision.
The site sits at an intersection and is described as being near Downtown Detroit, Michigan Central Station, and major freeway access. These factors are intended to support connectivity to established employment and transit hubs while maintaining flexibility for redevelopment.
Overall, the offering is presented as a development opportunity where the groundwork for a mixed-use concept is already in place, with the buyer able to move forward with the Steelhaus completion or pursue an alternate vision.
Key Highlights
- Mixed‑use site for sale at 2426 Michigan Avenue in Corktown, Detroit
- Year built: 2023
- Offered to complete or reimagine the original Steelhaus concept
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
$57,151
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
8.47%
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%
$1,143,020
$1.1M
Cap Rate 7%
$816,443
$816.4K
Cap Rate 9%
$635,011
$635.0K
Market Conditions
NOI Build-Up for 4,640 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
$86.3K $18.60/SF
− Vacancy
−$4.7K −$1.00/SF
EGI
$81.6K $17.60/SF
− OpEx
−$24.5K −$5.28/SF
NOI
$57.2K $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%
$1,143,020
Cap Rate 7%
$816,443
Cap Rate 9%
$635,011
Alternative Uses
Best Use
Retail
$816.4K
$714.4K – $952.5K
NOI $57,151 @ 7.0% cap · market cap 8.47%
Second Best
Mixed Use
$787.5K
$689.0K – $918.7K
NOI $55,123 @ 7.0% cap · market cap 8.17%
Theoretical Best
Office A
$1.02M
$895.7K – $1.19M
NOI $71,652 @ 7.0% cap · market cap 10.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
620
Businesses Nearby
Explore this area
Business Placement
Demographics for 48216, MI
5,031
Population
3,398
Households
1.5
Avg Household Size
35
Median Age
37%
College-Educated
87%
High-School Grad
2.3 sq mi
ZIP Area
2,187
Density / Sq Mi
$42,278
Median Household Income
$42,189
Median Earnings
$860
Median Rent
$225,300
Median Home Value
Market
Vacancy Rate% for Office in Detroit, MI
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - For-sale mixed-use site at 2426 Michigan Avenue, offered to complete or reimagine the Steelhaus concept.
Where is this mixed-use property located?
The property is located at 2426 Michigan Avenue Detroit, MI.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: Mixed‑use site for sale at 2426 Michigan Avenue in Corktown, Detroit; Year built: 2023; Offered to complete or reimagine the original Steelhaus concept
