Remodeled Bowling Alley and Sports
For Sale
Contact for pricing
40501 Production Dr, Harrison Township, MI 48045
Industrial-zoned entertainment property with a commercial kitchen, full bar, and multiple recreational facilities.
Property Size54,140 SF
Price / SF$146.84
Days on Market12
Property Features for 40501 Production Dr
General Information
Standard status
Active
Size
54,140 SF
Property subtype
Industrial
Zoning
Industrial
Investment Type
Redevelopment
Additional Details
Highway Access
Yes
Building Details
Year Built
1977
Year Renovated
2019
Buildings
1
Stories
2
Listing Agency:
Signature Associates Southfield
Listed By:
Chris Monsour · License #MI 6502135141
Source:
Crexi
Added: Jul 29
Changed: Aug 4
Last Checked: Aug 4 at 4:25AM
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 Signature Associates Southfield
Investment Insights
Based on property information with market context.
This 54,140-square-foot bowling and entertainment facility was built in 1977 and has undergone updates to both its interior and exterior. The property includes bowling, softball diamonds, racquetball, handball and wallyball courts, axe throwing, arcades, darts, billiards, cornhole, pins and skins, and short-court basketball. A full commercial kitchen and full bar support food and beverage operations.
Located at 40501 Production Dr in Harrison Township, Michigan, the property offers exposure to a main road and freeway, along with convenient freeway access. The site also includes newly paved parking. Industrial zoning and the existing mix of sports, recreation, kitchen, and bar improvements define the current commercial configuration.
Located at 40501 Production Dr in Harrison Township, Michigan, the property offers exposure to a main road and freeway, along with convenient freeway access. The site also includes newly paved parking. Industrial zoning and the existing mix of sports, recreation, kitchen, and bar improvements define the current commercial configuration.
Key Highlights
- 54,140‑square‑foot bowling and entertainment facility
- Interior and exterior renovations completed
- Bowling, softball diamonds, courts, axe throwing, arcades, darts, billiards, cornhole, pins and skins, and basketball
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
Industrial
$4.17M
$3.65M – $4.87M
NOI $291,930 @ 7.0% cap · market cap 3.67%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
251
Businesses Nearby
14k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 100%
McDonald's
Dining
13,943 visits/mo
0.5 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Bowling alley - Industrial-zoned entertainment property with a commercial kitchen, full bar, and multiple recreational facilities.
Where is this bowling alley located?
The property is located at 40501 Production Dr 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: 54,140‑square‑foot bowling and entertainment facility; Interior and exterior renovations completed; Bowling, softball diamonds, courts, axe throwing, arcades, darts, billiards, cornhole, pins and skins, and basketball
