Freestanding Restaurant
For Sale
$775,000
50285 Mound Rd, Utica, MI 48317
Existing restaurant facility with flexible commercial layout and on-site parking capacity.
Property Size4,043 SF
Lot Size1.59 Acres
Price / SF$191.69
Days on Market40
Property Features for 50285 Mound Rd
General Information
Standard status
Active
Size
4,043 SF
Lot size
1.59 Acres
Property subtype
Commercial
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$12,946
Building Details
Year Built
1976
Buildings
1
Listing Agency:
RE/MAX Advisors
(586) 996-4059
Listed By:
Maria McGuire · License #6504242665
(586) 996-4059
Source:
Elliman
Added: Jul 21
Changed: Aug 29
Last Checked: Aug 29 at 1:02PM
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 RE/MAX Advisors
Investment Insights
Based on property information with market context.
The property includes a 4,043-square-foot restaurant building constructed in 1976 and currently operating as Esplendido Mexican Restaurant. Its commercial layout is positioned for continued restaurant use, with the source information also identifying retail, office, and other commercial applications as potential fits. The existing business is available for purchase separately.
The building occupies 1.59 acres along Mound Road in Shelby Charter Township, providing a substantial parcel for on-site parking and future expansion or redevelopment. The property is located at 50285 Mound Rd, Shelby Charter Township, MI 48317.
The building occupies 1.59 acres along Mound Road in Shelby Charter Township, providing a substantial parcel for on-site parking and future expansion or redevelopment. The property is located at 50285 Mound Rd, Shelby Charter Township, MI 48317.
Key Highlights
- 4,043‑square‑foot restaurant building constructed in 1976
- Operating as Esplendido Mexican Restaurant; existing business also available for purchase
- 1.59‑acre parcel along Mound Road
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
$52,984
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
6.84%
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%
$1,059,680
$1.1M
Cap Rate 7%
$756,914
$756.9K
Cap Rate 9%
$588,711
$588.7K
Market Conditions
NOI Build-Up for 4,043 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
$80.1K $19.80/SF
− Vacancy
−$9.4K −$2.33/SF
EGI
$70.6K $17.47/SF
− OpEx
−$17.7K −$4.37/SF
NOI
$53.0K $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%
$1,059,680
Cap Rate 7%
$756,914
Cap Rate 9%
$588,711
Alternative Uses
Best Use
Specialty Retail
$756.9K
$662.3K – $883.1K
NOI $52,984 @ 7.0% cap · market cap 6.84%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
88
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48317, MI
27,864
Population
12,936
Households
2.2
Avg Household Size
39
Median Age
32%
College-Educated
90%
High-School Grad
12.0 sq mi
ZIP Area
2,322
Density / Sq Mi
$72,465
Median Household Income
$41,895
Median Earnings
$1,227
Median Rent
$248,700
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?
Conventional restaurant - Existing restaurant facility with flexible commercial layout and on-site parking capacity.
Where is this conventional restaurant located?
The property is located at 50285 Mound Rd Utica, MI.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: 4,043‑square‑foot restaurant building constructed in 1976; Operating as Esplendido Mexican Restaurant; existing business also available for purchase; 1.59‑acre parcel along Mound Road
