Mixed-Use Building with
For Sale
$800,000
3317-3323 Gratiot Ave, Detroit, MI 48207
Corner mixed-use building features fully occupied apartments above and a 1st-floor retail/office space available for lease.
Property Size6,875 SF
Price / SF$116.36
Days on Market411
Property Features for 3317-3323 Gratiot Ave
General Information
Standard status
Active
Size
6,875 SF
Property subtype
Other
Zoning
B4
Additional Details
Multifamily Units
4
Building Details
Building Size
6,875 SF
Year Built
1911
Buildings
1
Stories
2
Listing Agency:
Insite Commercial
Listed By:
Zak Shepler
(248) 359-9000
Source:
Cpix.resimplifi
Added: Jul 24, 2025
Changed: Sep 5
Last Checked: Aug 14 at 8:03AM
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 Insite Commercial
Investment Insights
Based on property information with market context.
This mixed-use, income-producing property includes 1st floor retail/office space and four apartment units on the 2nd floor. The residential component is fully occupied, with two two-bedroom units and two studio units. The 1st floor retail/office space is available for lease.
The building is located on the corner of Gratiot Avenue and Mack Avenue, immediately north of Downtown Detroit.
Recent building improvements include new plumbing, electrical, doors, and windows throughout, and the roof is reported to be in good condition. Seller financing is available, and the property offers an on-site mix of income from the apartments with a leasing opportunity on the ground level.
The building is located on the corner of Gratiot Avenue and Mack Avenue, immediately north of Downtown Detroit.
Recent building improvements include new plumbing, electrical, doors, and windows throughout, and the roof is reported to be in good condition. Seller financing is available, and the property offers an on-site mix of income from the apartments with a leasing opportunity on the ground level.
Key Highlights
- Corner mixed‑use building on Gratiot Ave and Mack Ave, immediately north of Downtown Detroit
- 1st‑floor retail/office space available for lease
- 4 apartment units above: two 2‑bedroom units and two studio units
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
$72,124
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
9.02%
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%
$1,442,480
$1.4M
Cap Rate 7%
$1,030,343
$1.0M
Cap Rate 9%
$801,378
$801.4K
Market Conditions
NOI Build-Up for 6,875 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
$140.3K $20.40/SF
− Vacancy
−$9.1K −$1.33/SF
EGI
$131.1K $19.07/SF
− OpEx
−$59.0K −$8.58/SF
NOI
$72.1K $10.49/SF
Area
Detroit, MI
Vacancy
6.50%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
45.00%
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%
$1,442,480
Cap Rate 7%
$1,030,343
Cap Rate 9%
$801,378
Alternative Uses
Best Use
Retail
$1.21M
$1.06M – $1.41M
NOI $84,679 @ 7.0% cap · market cap 10.58%
Second Best
Mixed Use
$1.17M
$1.02M – $1.36M
NOI $81,675 @ 7.0% cap · market cap 10.21%
Theoretical Best
Office A
$1.52M
$1.33M – $1.77M
NOI $106,166 @ 7.0% cap · market cap 13.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
460
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Corner mixed-use building features fully occupied apartments above and a 1st-floor retail/office space available for lease.
Where is this mixed-use property located?
The property is located at 3317-3323 Gratiot Ave Detroit, MI.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: Corner mixed‑use building on Gratiot Ave and Mack Ave, immediately north of Downtown Detroit; 1st‑floor retail/office space available for lease; 4 apartment units above: two 2‑bedroom units and two studio units
