Fully Equipped
For Sale
$3,500,000
27155 S Karevich Dr, Novi, MI 48377
C-zoned restaurant property with furniture, fixtures, and equipment included.
Property Size11,921 SF
Price / SF$293.60
Days on Market1147
Property Features for 27155 S Karevich Dr
General Information
Standard status
Active
Size
11,921 SF
Property subtype
Retail
Zoning
C
Additional Details
Furnished
Yes
Highway Access
Yes
Equipment Included
Yes
Building Details
Building Size
11,921 SF
Year Built
1979
Year Renovated
2012
Buildings
1
Stories
1
Listing Agency:
Thomas A. Duke Company
(248) 476-3700
Listed By:
Mark W. Szerlag · License #6502342846
(248) 476-3700
Source:
Cpix.resimplifi
Added: Jul 11, 2023
Changed: Aug 29
Last Checked: Aug 29 at 7:42PM
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 Thomas A. Duke Company
Investment Insights
Based on property information with market context.
This 11,921-square-foot conventional restaurant property includes furniture, fixtures, and equipment, providing an existing physical setup for restaurant operations. The building was constructed in 1979 and is located on S. Karevich Drive in Novi, Michigan.
The property carries C zoning and is positioned west of Novi Road and north of I-96. Its address is 27155 S Karevich Dr, Novi, MI 48377.
The property carries C zoning and is positioned west of Novi Road and north of I-96. Its address is 27155 S Karevich Dr, Novi, MI 48377.
Key Highlights
- 11,921‑square‑foot conventional restaurant property
- Furniture, fixtures, and equipment included
- C zoning
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
$179,988
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
5.14%
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%
$3,599,760
$3.6M
Cap Rate 7%
$2,571,257
$2.6M
Cap Rate 9%
$1,999,867
$2.0M
Market Conditions
NOI Build-Up for 11,921 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
$257.5K $21.60/SF
− Vacancy
−$17.5K −$1.47/SF
EGI
$240.0K $20.13/SF
− OpEx
−$60.0K −$5.03/SF
NOI
$180.0K $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%
$3,599,760
Cap Rate 7%
$2,571,257
Cap Rate 9%
$1,999,867
Alternative Uses
Best Use
Specialty Retail
$2.57M
$2.25M – $3.00M
NOI $179,988 @ 7.0% cap · market cap 5.14%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
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
1,319
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48377, MI
19,691
Population
9,961
Households
2
Avg Household Size
39
Median Age
52%
College-Educated
95%
High-School Grad
9.6 sq mi
ZIP Area
2,051
Density / Sq Mi
$83,368
Median Household Income
$54,373
Median Earnings
$1,439
Median Rent
$332,000
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?
Conventional restaurant - C-zoned restaurant property with furniture, fixtures, and equipment included.
Where is this conventional restaurant located?
The property is located at 27155 S Karevich Dr Novi, MI.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 11,921‑square‑foot conventional restaurant property; Furniture, fixtures, and equipment included; C zoning
