Drive-Through Restaurant with
New
For Sale
$300,000
2757 W Davison St, Detroit, MI 48238
Former Church's Chicken location with B2 zoning, a walk-in cooler, and a recently resurfaced parking lot.
Property Size1,095 SF
Price / SF$273.97
Days on Market6
Property Features for 2757 W Davison St
General Information
Standard status
Active
Size
1,095 SF
Total Parking Spaces
30
Property subtype
Retail
Zoning
B2
Additional Details
Drive-Thru
Yes
Building Details
Building Size
1,095 SF
Year Built
1977
Stories
1
Listing Agency:
Signature Associates - Southfield
(248) 359-0615
Listed By:
Joe Stack
(248) 359-0615
Source:
Cpix.resimplifi
Added: Aug 17
Changed: Aug 22
Last Checked: Aug 22 at 3:31AM
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 Signature Associates - Southfield
Investment Insights
Based on property information with market context.
Located at 2757 W. Davison St in Detroit, Michigan, this drive-through restaurant property was built in 1977 and previously operated as a Church's Chicken location. The building includes a walk-in cooler and supports drive-through restaurant use.
The property is zoned B2, with a parking lot that was recently resurfaced. Its existing restaurant configuration and on-site improvements provide a defined starting point for continued food-service use.
The property is zoned B2, with a parking lot that was recently resurfaced. Its existing restaurant configuration and on-site improvements provide a defined starting point for continued food-service use.
Key Highlights
- Drive‑through restaurant property at 2757 W. Davison St, Detroit, MI 48238
- Previously operated as Church's Chicken
- B2 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
$14,450
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
4.82%
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%
$289,000
$289.0K
Cap Rate 7%
$206,429
$206.4K
Cap Rate 9%
$160,556
$160.6K
Market Conditions
NOI Build-Up for 1,095 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
$20.4K $18.60/SF
− Vacancy
−$1.1K −$1.00/SF
EGI
$19.3K $17.60/SF
− OpEx
−$4.8K −$4.40/SF
NOI
$14.5K $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%
$289,000
Cap Rate 7%
$206,429
Cap Rate 9%
$160,556
Alternative Uses
Best Use
Specialty Retail
$206.4K
$180.6K – $240.8K
NOI $14,450 @ 7.0% cap · market cap 4.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$241.6K
$211.4K – $281.8K
NOI $16,909 @ 7.0% cap · market cap 5.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
358
Businesses Nearby
25k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Citgo
Shops & Services
9,679 visits/mo
0.5 miles
Buddy's Pizza
Dining
7,304 visits/mo
0.3 miles
BP
Shops & Services
4,993 visits/mo
0.5 miles
U-Haul
Shops & Services
2,957 visits/mo
0.4 miles
Demographics for 48238, MI
25,747
Population
16,341
Households
1.6
Avg Household Size
37
Median Age
13%
College-Educated
84%
High-School Grad
5.4 sq mi
ZIP Area
4,768
Density / Sq Mi
$30,286
Median Household Income
$25,948
Median Earnings
$950
Median Rent
$58,700
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Former Church's Chicken location with B2 zoning, a walk-in cooler, and a recently resurfaced parking lot.
Where is this drive through restaurant located?
The property is located at 2757 W Davison St Detroit, MI.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Drive‑through restaurant property at 2757 W. Davison St, Detroit, MI 48238; Previously operated as Church's Chicken; B2 zoning
