Ferndale Restaurant Investment
For Sale
$950,000
545 W Nine Mile Rd, Ferndale, MI 48220
Restaurant property with income, parking, and signage in Ferndale.
Property Size4,501 SF
Price / SF$211.06
Days on Market183
Property Features for 545 W Nine Mile Rd
General Information
Standard status
Active
Size
4,501 SF
Property subtype
Retail
Zoning
CBD
Building Details
Building Size
4,501 SF
Listing Agency:
L. Mason Capitani, Inc.
Listed By:
Aaron R. Smith · License #6501377543
(248) 637-3515
Source:
Cpix.resimplifi
Added: Mar 27
Changed: Sep 13
Last Checked: Sep 24 at 6:50AM
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 L. Mason Capitani, Inc.
Investment Insights
Based on property information with market context.
This commercial property is located in Ferndale and offers an investment opportunity with immediate income and future flexibility. The property features excellent building signage with strong main road visibility. A dedicated 21-car parking lot provides rare on-site parking. The roof and HVAC system were replaced in the last 4 years. There is an existing restaurant tenant in place, willing to remain through June 2027. The property size is 4,501 square feet.
Key Highlights
- Prime location in the heart of Ferndale
- Rare on‑site parking with a dedicated 21 car parking lot
- Investment opportunity with immediate income
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
$67,958
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
7.15%
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%
$1,359,160
$1.4M
Cap Rate 7%
$970,829
$970.8K
Cap Rate 9%
$755,089
$755.1K
Market Conditions
NOI Build-Up for 4,501 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
$97.2K $21.60/SF
− Vacancy
−$6.6K −$1.47/SF
EGI
$90.6K $20.13/SF
− OpEx
−$22.7K −$5.03/SF
NOI
$68.0K $15.10/SF
Area
Oakland County, MI
Vacancy
6.80%
Lease Rate
$21.60 /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%
$1,359,160
Cap Rate 7%
$970,829
Cap Rate 9%
$755,089
Alternative Uses
Best Use
Specialty Retail
$970.8K
$849.5K – $1.13M
NOI $67,958 @ 7.0% cap · market cap 7.15%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,475
Businesses Nearby
144k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 75%
Shops & Services 20%
Beauty & Spa 2%
Electronics 2%
McDonald's
Dining
22,302 visits/mo
0.1 miles
Wendy's
Dining
20,467 visits/mo
0.2 miles
Pizza Hut
Dining
13,458 visits/mo
0.5 miles
Taco Bell
Dining
10,104 visits/mo
0.4 miles
Mobil
Shops & Services
9,934 visits/mo
0.2 miles
Demographics for 48220, MI
21,564
Population
12,003
Households
1.8
Avg Household Size
37
Median Age
53%
College-Educated
96%
High-School Grad
4.4 sq mi
ZIP Area
4,901
Density / Sq Mi
$86,095
Median Household Income
$54,557
Median Earnings
$1,191
Median Rent
$229,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Similar Off Market Nearby
- Quarton Catering — 22020 Woodward Ave, Ferndale, MI 48220
- Got Pho — 172 W Nine Mile Rd, Ferndale, MI 48220
- Hero or Villain Deli: HQ — 22965 Woodward Ave, Ferndale, MI 48220
- Cappuccino Man — W Cambourne St, Ferndale, MI 48220
Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant property with income, parking, and signage in Ferndale.
Where is this restaurant located?
The property is located at 545 W Nine Mile Rd Ferndale, MI.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Prime location in the heart of Ferndale; Rare on‑site parking with a dedicated 21 car parking lot; Investment opportunity with immediate income
