Auto Dealer Opportunity in
For Sale
$1,300,000
28975 Grand River Ave, Farmington Hills, MI 48336
Prime location with renovated facility and ample parking.
Property Size5,790 SF
Lot Size2.04 Acres
Days on Market255
Property Features for 28975 Grand River Ave
General Information
Standard status
Active
Size
5,790 SF
Lot size
2.04 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$19,192
Building Details
Building Size
5,790 SF
Year Built
1970
Listing Agency:
RE/MAX Team 2000
(313) 561-0900
Listed By:
Yousef Beydoun · License #6501354088
(313) 561-0900
Source:
Elliman
Added: Nov 27, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:38AM
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 RE/MAX Team 2000
Investment Insights
Based on property information with market context.
This property presents a rare acquisition opportunity for an auto dealer in Farmington Hills. The site features over 2 acres of land and a newly paved parking lot accommodating nearly 100 parking spaces. Situated on heavily traveled Grand River Avenue, the location provides easy freeway access and high traffic volumes. The renovated facility includes seven individual office spaces alongside a main office corridor, two spacious storage rooms, multiple bathrooms, a large lobby space with reception and waiting area, and a private fitness room equipped with two showers.
Key Highlights
- Prime location on heavily traveled Grand River Ave in Farmington Hills with easy freeway access.
- Over 2 acres of land suitable for an auto dealer.
- Newly paved parking lot accommodating nearly 100 parking spaces.
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
$62,303
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
4.79%
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%
$1,246,060
$1.2M
Cap Rate 7%
$890,043
$890.0K
Cap Rate 9%
$692,256
$692.3K
Market Conditions
NOI Build-Up for 5,790 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
$97.3K $16.80/SF
− Vacancy
−$8.3K −$1.43/SF
EGI
$89.0K $15.37/SF
− OpEx
−$26.7K −$4.61/SF
NOI
$62.3K $10.76/SF
Area
Oakland County, MI
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,246,060
Cap Rate 7%
$890,043
Cap Rate 9%
$692,256
Alternative Uses
Best Use
Retail
$890.0K
$778.8K – $1.04M
NOI $62,303 @ 7.0% cap · market cap 4.79%
Second Best
Industrial
$409.8K
$358.6K – $478.1K
NOI $28,687 @ 7.0% cap · market cap 2.21%
Theoretical Best
Specialty Retail
$1.25M
$1.09M – $1.46M
NOI $87,420 @ 7.0% cap · market cap 6.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
528
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48336, MI
26,802
Population
12,296
Households
2.2
Avg Household Size
42
Median Age
44%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,882
Density / Sq Mi
$85,325
Median Household Income
$54,077
Median Earnings
$1,141
Median Rent
$247,600
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.
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Frequently Asked Questions
What type of property is this?
Auto shop - Prime location with renovated facility and ample parking.
Where is this auto shop located?
The property is located at 28975 Grand River Ave Farmington Hills, MI.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Prime location on heavily traveled Grand River Ave in Farmington Hills with easy freeway access.; Over 2 acres of land suitable for an auto dealer.; Newly paved parking lot accommodating nearly 100 parking spaces.
