Riverfront Warehouse District Redevelopment
For Sale
$1,325,000
260 Mount Elliott Street, Detroit, MI 48207
Unique commercial package in rapidly developing Detroit Riverfront area.
Property Size18,805 SF
Price / SF$70.46
Days on Market140
Property Features for 260 Mount Elliott Street
General Information
Standard status
Active
Size
18,805 SF
Property subtype
Commercial
Zoning
Commercial
Taxes and HOA fees
Annual Taxes
$4,515
Building Details
Building Size
18,805 SF
Year Built
2003
Listing Agency:
ARG Realty
(313) 792-8030
Listed By:
Fay Salmaci · License #6501348320
(313) 792-8030
Source:
Phgrealty
Added: Apr 7
Changed: Aug 23
Last Checked: Aug 24 at 12:53PM
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 ARG Realty
Investment Insights
Based on property information with market context.
This commercial package offers a redevelopment opportunity in the Riverfront/Warehouse District. The package includes multiple connected buildings at 260 Mt. Elliott, 266 Mt. Elliott, and 275 Iron, all under the same ownership. The property features strong visibility, secured parking, and flexible-use space. It is located in a rapidly developing area near the Detroit Riverfront. The location has a bike score of 88, indicating it is very bikeable, a walk score of 66, indicating it is somewhat walkable, and a transit score of 50, indicating good transit options. The site is ideal for owner-users, investors, or redevelopment. The package includes three commercial buildings totaling approximately 18,805 square feet. Land contract is available.
Key Highlights
- Rare Riverfront/Warehouse District redevelopment opportunity.
- Multiple connected buildings totaling 18,805 square feet.
- Located in a rapidly developing area near the Detroit Riverfront.
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
$91,462
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
6.90%
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%
$1,829,240
$1.8M
Cap Rate 7%
$1,306,600
$1.3M
Cap Rate 9%
$1,016,244
$1.0M
Market Conditions
NOI Build-Up for 18,805 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
$137.7K $7.32/SF
− Vacancy
−$7.0K −$0.37/SF
EGI
$130.7K $6.95/SF
− OpEx
−$39.2K −$2.08/SF
NOI
$91.5K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /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%
$1,829,240
Cap Rate 7%
$1,306,600
Cap Rate 9%
$1,016,244
Alternative Uses
Best Use
Mixed Use
$3.19M
$2.79M – $3.72M
NOI $223,403 @ 7.0% cap · market cap 16.86%
Second Best
Warehouse
$1.91M
$1.68M – $2.23M
NOI $134,001 @ 7.0% cap · market cap 10.11%
Theoretical Best
Office A
$4.15M
$3.63M – $4.84M
NOI $290,392 @ 7.0% cap · market cap 21.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
854
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Market
Vacancy Rate% for Industrial in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Unique commercial package in rapidly developing Detroit Riverfront area.
Where is this warehouse located?
The property is located at 260 Mount Elliott Street Detroit, MI.
What is the asking price?
The asking price for this property is $1,325,000.
What are key features of this property?
This property features: Rare Riverfront/Warehouse District redevelopment opportunity.; Multiple connected buildings totaling 18,805 square feet.; Located in a rapidly developing area near the Detroit Riverfront.
