Freestanding Restaurant
New
For Sale
$575,000
2971 Coolidge Hwy, Berkley, MI 48072
Established restaurant property with commercial kitchen equipment and a dedicated on-site parking area.
Property Size2,471 SF
Days on Market2
Property Features for 2971 Coolidge Hwy
General Information
Standard status
Active
Size
2,471 SF
Total Parking Spaces
16
Property subtype
Retail
Building Details
Building Size
2,471 SF
Year Built
1957
Buildings
1
Listing Agency:
Thomas A. Duke Company
Listed By:
Andrew Battersby · License #6501384188
(248) 631-8085
Source:
Thomasduke
Added: Sep 1
Last Checked: Sep 2 at 3:32PM
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 freestanding restaurant building in Berkley, Michigan, was constructed in 1957 and includes existing kitchen equipment. The property has served as a restaurant location and is offered with a dedicated parking field containing 16 spaces.
Positioned on Coolidge Hwy, the building provides a standalone setting for restaurant operations. The property is being offered for sale and is noted as having its first market offering in more than 30 years.
Positioned on Coolidge Hwy, the building provides a standalone setting for restaurant operations. The property is being offered for sale and is noted as having its first market offering in more than 30 years.
Key Highlights
- Freestanding restaurant building at 2971 Coolidge Hwy, Berkley, MI 48072
- 16‑space parking field
- Existing kitchen equipment included
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
$37,308
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
6.49%
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%
$746,160
$746.2K
Cap Rate 7%
$532,971
$533.0K
Cap Rate 9%
$414,533
$414.5K
Market Conditions
NOI Build-Up for 2,471 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
$53.4K $21.60/SF
− Vacancy
−$3.6K −$1.47/SF
EGI
$49.7K $20.13/SF
− OpEx
−$12.4K −$5.03/SF
NOI
$37.3K $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%
$746,160
Cap Rate 7%
$532,971
Cap Rate 9%
$414,533
Alternative Uses
Best Use
Specialty Retail
$533.0K
$466.4K – $621.8K
NOI $37,308 @ 7.0% cap · market cap 6.49%
Second Best
Retail
$379.8K
$332.4K – $443.2K
NOI $26,589 @ 7.0% cap · market cap 4.62%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
852
Businesses Nearby
35k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 66%
Shops & Services 34%
Taco Bell
Dining
15,399 visits/mo
0.5 miles
Sunoco
Shops & Services
5,884 visits/mo
0.2 miles
PNC Bank
Shops & Services
5,223 visits/mo
0.3 miles
Bagger Dave's
Dining
4,283 visits/mo
0.1 miles
Jet's Pizza
Dining
3,497 visits/mo
0.2 miles
Demographics for 48072, MI
15,194
Population
7,068
Households
2.1
Avg Household Size
38
Median Age
58%
College-Educated
99%
High-School Grad
2.4 sq mi
ZIP Area
6,331
Density / Sq Mi
$113,103
Median Household Income
$68,818
Median Earnings
$1,436
Median Rent
$289,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant property with commercial kitchen equipment and a dedicated on-site parking area.
Where is this conventional restaurant located?
The property is located at 2971 Coolidge Hwy Berkley, MI.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Freestanding restaurant building at 2971 Coolidge Hwy, Berkley, MI 48072; 16‑space parking field; Existing kitchen equipment included
