Renovated Restaurant
New
For Sale
$899,000
2705 Lapeer Rd, Auburn Hills, MI 48326
B-1-zoned commercial property with a flexible interior ready for office, retail, or restaurant improvements.
Property Size4,000 SF
Lot Size1.27 Acres
Price / SF$224.75
Days on Market4
Property Features for 2705 Lapeer Rd
General Information
Standard status
Active
Size
4,000 SF
Lot size
1.27 Acres
Property subtype
Retail | Restaurant
Zoning
B-1
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Asking Price
$899,000
Building Details
Year Built
1975
Year Renovated
2026
Buildings
1
Listing Agency:
Friedman Real Estate
Listed By:
Larry Schultz
(248) 867-2399
Source:
Friedmanrealestate
Added: Sep 20
Last Checked: Sep 22 at 3:01PM
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 Friedman Real Estate
Investment Insights
Based on property information with market context.
This 4,000-square-foot commercial building occupies 1.27 acres and was previously used as a restaurant. The interior has been gutted, cleaned, and renovated, allowing the next owner to complete the space according to its requirements. A large parking area supports the building, while B-1 zoning accommodates office and retail possibilities identified for the property.
The site fronts Lapeer Rd at the Opdyke Rd merge, just south of the I-75 ramps. It is near the GM Orion assembly plant and the new Piston Automotive plant at the former Palace of Auburn Hills site. Built in 1975, the property combines an existing commercial structure, substantial land area, and a location positioned near major employment centers.
The site fronts Lapeer Rd at the Opdyke Rd merge, just south of the I-75 ramps. It is near the GM Orion assembly plant and the new Piston Automotive plant at the former Palace of Auburn Hills site. Built in 1975, the property combines an existing commercial structure, substantial land area, and a location positioned near major employment centers.
Key Highlights
- 4,000‑square‑foot building on 1.27 acres
- B‑1 zoning supports office and retail possibilities
- Interior gutted, cleaned, and renovated for completion
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
$60,394
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
6.72%
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%
$1,207,880
$1.2M
Cap Rate 7%
$862,771
$862.8K
Cap Rate 9%
$671,044
$671.0K
Market Conditions
NOI Build-Up for 4,000 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
$86.4K $21.60/SF
− Vacancy
−$5.9K −$1.47/SF
EGI
$80.5K $20.13/SF
− OpEx
−$20.1K −$5.03/SF
NOI
$60.4K $15.10/SF
Area
Oakland County, MI
Vacancy
6.80%
Lease Rate
$21.60 /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%
$1,207,880
Cap Rate 7%
$862,771
Cap Rate 9%
$671,044
Alternative Uses
Best Use
Specialty Retail
$862.8K
$754.9K – $1.01M
NOI $60,394 @ 7.0% cap · market cap 6.72%
Second Best
Retail
$614.9K
$538.0K – $717.4K
NOI $43,042 @ 7.0% cap · market cap 4.79%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
599
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 75%
Dining 23%
Home Improvements & Furnishings 2%
Chase Bank
Shops & Services
7,930 visits/mo
0.2 miles
7-Eleven
Shops & Services
7,786 visits/mo
0.3 miles
Arby's
Dining
7,248 visits/mo
0.4 miles
Marathon Petroleum
Shops & Services
4,125 visits/mo
0.3 miles
Shell
Shops & Services
2,801 visits/mo
0.2 miles
Demographics for 48326, MI
22,228
Population
12,219
Households
1.8
Avg Household Size
36
Median Age
47%
College-Educated
93%
High-School Grad
16.9 sq mi
ZIP Area
1,315
Density / Sq Mi
$79,468
Median Household Income
$46,012
Median Earnings
$1,411
Median Rent
$235,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - B-1-zoned commercial property with a flexible interior ready for office, retail, or restaurant improvements.
Where is this conventional restaurant located?
The property is located at 2705 Lapeer Rd Auburn Hills, MI.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: 4,000‑square‑foot building on 1.27 acres; B‑1 zoning supports office and retail possibilities; Interior gutted, cleaned, and renovated for completion
