Restaurant Building with
For Sale
$1,070,000
50285 Mound Road, Shelby Twp, MI 48317
For sale 4,043 sq ft restaurant building on a sizable Mound Road site with patio, on-site parking, and fire suppression.
Property Size4,043 SF
Lot Size1.59 Acres
Price / SF$264.65
Days on Market163
Property Features for 50285 Mound Road
General Information
Standard status
Active
Size
4,043 SF
Lot size
1.59 Acres
Property subtype
General Commercial
Additional Details
Business Included
Yes
Sprinkler System
Yes
Amenities
spacious dining area
inviting outdoor patio
distinctive Tiki Bar
3
155 x irreg
Building Details
Year Built
1976
Listing Agency:
RE/MAX Advisors
(586) 725-1900
Listed By:
Maria McGuire · License #6504242665
Source:
Xome
Added: Mar 15
Changed: Aug 23
Last Checked: Aug 24 at 3:43AM
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.
For sale, this 4,043 sq ft commercial building is positioned on 1.59 acres along Mound Road and is currently home to Esplendido Mexican Restaurant. The property includes a spacious dining area, an inviting outdoor patio, and a distinctive Tiki Bar, supported by a fire suppression system and essential infrastructure for ongoing operations.
Additional convenience comes from expansive on-site parking, with extra space on the site for potential future expansion or redevelopment. The purchase is also offered with flexibility, including the possibility to acquire the real estate independently of the restaurant business.
In addition to the building, the thriving restaurant business is available as a turnkey opportunity, providing an established platform for immediate operation.
Additional convenience comes from expansive on-site parking, with extra space on the site for potential future expansion or redevelopment. The purchase is also offered with flexibility, including the possibility to acquire the real estate independently of the restaurant business.
In addition to the building, the thriving restaurant business is available as a turnkey opportunity, providing an established platform for immediate operation.
Key Highlights
- 4,043 sq ft commercial building on 1.59 acres along Mound Road
- Currently operating as Esplendido Mexican Restaurant, with a versatile layout for retail or office use
- Expansive site includes abundant on‑site parking and additional space for future expansion or redevelopment
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
4.95%
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 4.95%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
210
Businesses Nearby
21k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar Tree
Shops & Services
9,776 visits/mo
0.5 miles
BP
Shops & Services
8,557 visits/mo
0.4 miles
Comerica Bank
Shops & Services
1,717 visits/mo
0.3 miles
Marathon
Shops & Services
572 visits/mo
0.4 miles
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 - For sale 4,043 sq ft restaurant building on a sizable Mound Road site with patio, on-site parking, and fire suppression.
Where is this conventional restaurant located?
The property is located at 50285 Mound Road Shelby Twp, MI.
What is the asking price?
The asking price for this property is $1,070,000.
What are key features of this property?
This property features: 4,043 sq ft commercial building on 1.59 acres along Mound Road; Currently operating as Esplendido Mexican Restaurant, with a versatile layout for retail or office use; Expansive site includes abundant on‑site parking and additional space for future expansion or redevelopment
