Sports and Entertainment Center For
For Sale
$7,950,000
40501 Production Drive, Harrison Township, MI 48045
Remodeled sports and entertainment center with full bar and kitchen.
Property Size54,140 SF
Price / SF$146.84
Days on Market330
Property Features for 40501 Production Drive
General Information
Standard status
Active
Size
54,140 SF
Property subtype
Industrial
Building Details
Building Size
54,140 SF
Year Built
1977
Listing Agency:
(313) 363-1010
Listed By:
Chris Monsour
(313) 363-1010
Source:
Tcnworldwide
Added: Sep 25, 2025
Changed: Aug 18
Last Checked: Aug 20 at 4:45AM
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 Chris Monsour
Investment Insights
Based on property information with market context.
This property presents a redevelopment opportunity, featuring a newly remodeled interior and exterior, along with new paved parking. It benefits from main road and freeway exposure, providing easy access to the freeway. Currently operating as a sports and entertainment center, the facility includes bowling lanes, softball diamonds, racquetball, handball, and wallyball courts, axe throwing areas, arcades, darts and billiards, cornhole, pins & skins, and a short court basketball area. The property also features a full commercial kitchen and a full bar with crafts and drafts. The property size is 54140 square feet.
Key Highlights
- Newly remodeled interior and exterior offering a fresh, modern appeal.
- Main road and freeway exposure provides exceptional visibility.
- Full commercial kitchen and full bar with crafts/drafts, perfect for attracting patrons.
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
$709,511
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
8.92%
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%
$14,190,220
$14.2M
Cap Rate 7%
$10,135,871
$10.1M
Cap Rate 9%
$7,883,456
$7.9M
Market Conditions
NOI Build-Up for 54,140 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
$1.07M $19.80/SF
− Vacancy
−$126.0K −$2.33/SF
EGI
$946.0K $17.47/SF
− OpEx
−$236.5K −$4.37/SF
NOI
$709.5K $13.11/SF
Area
Macomb County, MI
Vacancy
11.75%
Lease Rate
$19.80 /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%
$14,190,220
Cap Rate 7%
$10,135,871
Cap Rate 9%
$7,883,456
Alternative Uses
Best Use
Specialty Retail
$10.14M
$8.87M – $11.83M
NOI $709,511 @ 7.0% cap · market cap 8.92%
Second Best
Retail
$5.72M
$5.00M – $6.67M
NOI $400,203 @ 7.0% cap · market cap 5.03%
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
270
Businesses Nearby
27k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 45%
McDonald's
Dining
13,943 visits/mo
0.2 miles
Exxon
Shops & Services
9,889 visits/mo
0.2 miles
Extra Space Storage
Shops & Services
1,362 visits/mo
0.2 miles
BP
Shops & Services
876 visits/mo
0.3 miles
SUBWAY
Dining
757 visits/mo
0.2 miles
Demographics for 48045, MI
24,341
Population
12,401
Households
2
Avg Household Size
46
Median Age
26%
College-Educated
95%
High-School Grad
14.3 sq mi
ZIP Area
1,702
Density / Sq Mi
$77,808
Median Household Income
$48,889
Median Earnings
$1,085
Median Rent
$243,000
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?
Sports & entertainment property - Remodeled sports and entertainment center with full bar and kitchen.
Where is this sports & entertainment property located?
The property is located at 40501 Production Drive Harrison Township, MI.
What is the asking price?
The asking price for this property is $7,950,000.
What are key features of this property?
This property features: Newly remodeled interior and exterior offering a fresh, modern appeal.; Main road and freeway exposure provides exceptional visibility.; Full commercial kitchen and full bar with crafts/drafts, perfect for attracting patrons.
