20-Unit Apartment
For Sale
$900,000
3737 Scovel Place, Detroit, MI 48208
Updated 20-unit occupied building with leases in place, onsite parking, and individual electric metering for all units.
Property Size6,534 SF
Price / SF$137.74
Days on Market791
Property Features for 3737 Scovel Place
General Information
Standard status
Active
Size
6,534 SF
Property subtype
Multi Family
Additional Details
Multifamily Units
20
Taxes and HOA fees
Annual Taxes
$12,844
Building Details
Year Built
1927
Tenancy
Multi
Listing Agency:
Golden Key Real Estate LLC
(248) 251-4670
Listed By:
Ryan Heward · License #6502401117
(248) 251-4670
Source:
Exitrealty
Added: Jun 12, 2024
Changed: Aug 8
Last Checked: Aug 11 at 6:44AM
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 Golden Key Real Estate LLC
Investment Insights
Based on property information with market context.
This updated 20-unit apartment building is currently occupied with leases in place. The mix includes 10 one-bedroom units and 10 studio units. Unit improvements described include newer flooring, paint, and lighting for most units, steel doors with keyless/digital entry and deadbolt locks, and separate electric meters with individual heating and cooling units. The one-bedroom units have newer furnaces and AC, and the studio units have new mini-split systems with heat and AC. Reported improvements also include replacement of the majority of plumbing stacks, newer windows, and updated LED lighting in the common areas. Building systems and components include an aluminum roof seal coating completed in 2016 and a hot water tank replacement for the entire building in 2016. A camera system has been installed throughout the building and outside.
The property includes ample parking in an attached concrete lot directly next to the building. The building is rental certified and has passed lead inspection by the city of Detroit.
Access and entry are addressed with updated locking mechanisms at the front and new steel construction at the back door, supporting controlled building operations for tenants.
The property includes ample parking in an attached concrete lot directly next to the building. The building is rental certified and has passed lead inspection by the city of Detroit.
Access and entry are addressed with updated locking mechanisms at the front and new steel construction at the back door, supporting controlled building operations for tenants.
Key Highlights
- 1927‑built, 20‑unit occupied apartment building with leases in place
- Unit mix: 10 one‑bedroom units and 10 studio units
- Onsite parking in an attached concrete lot directly next to the building
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
$68,546
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
7.62%
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%
$1,370,920
$1.4M
Cap Rate 7%
$979,229
$979.2K
Cap Rate 9%
$761,622
$761.6K
Market Conditions
NOI Build-Up for 6,534 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
$133.3K $20.40/SF
− Vacancy
−$8.7K −$1.33/SF
EGI
$124.6K $19.07/SF
− OpEx
−$56.1K −$8.58/SF
NOI
$68.5K $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%
$1,370,920
Cap Rate 7%
$979,229
Cap Rate 9%
$761,622
Alternative Uses
Best Use
Apartment 5plus
$979.2K
$856.8K – $1.14M
NOI $68,546 @ 7.0% cap · market cap 7.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,900 @ 7.0% cap · market cap 11.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
342
Businesses Nearby
Explore this area
Business Placement
Demographics for 48208, MI
8,090
Population
5,226
Households
1.5
Avg Household Size
37
Median Age
27%
College-Educated
79%
High-School Grad
3.2 sq mi
ZIP Area
2,528
Density / Sq Mi
$29,742
Median Household Income
$39,526
Median Earnings
$842
Median Rent
$186,700
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?
Apartment building - Updated 20-unit occupied building with leases in place, onsite parking, and individual electric metering for all units.
Where is this apartment building located?
The property is located at 3737 Scovel Place Detroit, MI.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 1927‑built, 20‑unit occupied apartment building with leases in place; Unit mix: 10 one‑bedroom units and 10 studio units; Onsite parking in an attached concrete lot directly next to the building
