Established Restaurant on Grand
For Sale
$400,000
27281 Grand River Ave, Redford, MI 48240
Well-established restaurant with high visibility on Grand River Avenue.
Property Size2,044 SF
Lot Size0.21 Acres
Days on Market165
Property Features for 27281 Grand River Ave
General Information
Standard status
Active
Size
2,044 SF
Lot size
0.21 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,180
Building Details
Building Size
2,044 SF
Year Built
1959
Listing Agency:
KW Realty Livingston
(810) 227-5500
Listed By:
Brigel Lulaj · License #6501448878
(810) 227-5500
Source:
Elliman
Added: Mar 10
Changed: Aug 13
Last Checked: Aug 20 at 10:48AM
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 KW Realty Livingston
Investment Insights
Based on property information with market context.
This well-established restaurant for sale in Redford has been family-owned for over 50 years and has a long-time following. The restaurant currently serves breakfast and lunch, with the opportunity to incorporate dinner service. The location on Grand River, characterized by high traffic patterns, offers visibility for a growing business. The transaction includes all FF&E needed to run the business.
Key Highlights
- High‑traffic location on Grand River offers excellent visibility.
- Includes all FF&E (furniture, fixtures, and equipment) needed to operate the business.
- Well‑established restaurant with a 50+ year history and loyal customer base.
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
$26,974
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
6.74%
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%
$539,480
$539.5K
Cap Rate 7%
$385,343
$385.3K
Cap Rate 9%
$299,711
$299.7K
Market Conditions
NOI Build-Up for 2,044 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
$38.0K $18.60/SF
− Vacancy
−$2.1K −$1.00/SF
EGI
$36.0K $17.60/SF
− OpEx
−$9.0K −$4.40/SF
NOI
$27.0K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$539,480
Cap Rate 7%
$385,343
Cap Rate 9%
$299,711
Alternative Uses
Best Use
Specialty Retail
$385.3K
$337.2K – $449.6K
NOI $26,974 @ 7.0% cap · market cap 6.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$450.9K
$394.6K – $526.1K
NOI $31,564 @ 7.0% cap · market cap 7.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
887
Businesses Nearby
78k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 77%
Shops & Services 20%
Electronics 2%
Apparel 1%
McDonald's
Dining
20,145 visits/mo
0.2 miles
Taco Bell
Dining
15,672 visits/mo
0.1 miles
Wendy's
Dining
11,264 visits/mo
0.3 miles
KFC
Dining
7,635 visits/mo
0.1 miles
Marathon
Shops & Services
7,098 visits/mo
0.2 miles
Demographics for 48240, MI
17,962
Population
7,328
Households
2.5
Avg Household Size
38
Median Age
22%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
4,855
Density / Sq Mi
$57,970
Median Household Income
$37,694
Median Earnings
$1,326
Median Rent
$120,700
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.
Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Well-established restaurant with high visibility on Grand River Avenue.
Where is this breakfast & diner located?
The property is located at 27281 Grand River Ave Redford, MI.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: High‑traffic location on Grand River offers excellent visibility.; Includes all FF&E (furniture, fixtures, and equipment) needed to operate the business.; Well‑established restaurant with a 50+ year history and loyal customer base.
