Built-Out Café/Restaurant
For Sale
$199,900
5838 Schaefer Road, Dearborn, MI 48126
Established restaurant configuration with commercial hood, fixtures, and operating equipment included.
Property Size1,000 SF
Days on Market17
Property Features for 5838 Schaefer Road
General Information
Standard status
Active
Size
1,000 SF
Property subtype
Commercial
Zoning
Commercial
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$49,820
Building Details
Building Size
1,000 SF
Year Built
2016
Listing Agency:
Keller Williams Legacy
(313) 752-0000
Listed By:
Mohamed Alshubi · License #6501439818
Source:
Erareardonrealty
Added: Aug 14
Changed: Aug 29
Last Checked: Aug 29 at 10:44AM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
Constructed in 2016, this restaurant property includes an established café layout, commercial hood system, installed fixtures, and a complete lineup of operating equipment. The offering includes the physical space, interior buildout, and equipment, providing a defined setup for a new restaurant concept.
The property is located at 5838 Schaefer Road in Dearborn, Michigan. It is being offered separately from the existing café business name and brand, making the space suitable for an owner-user or operator seeking an already configured restaurant setting. The included improvements support a direct transition into a food-service operation without starting with an unfinished interior.
The property is located at 5838 Schaefer Road in Dearborn, Michigan. It is being offered separately from the existing café business name and brand, making the space suitable for an owner-user or operator seeking an already configured restaurant setting. The included improvements support a direct transition into a food-service operation without starting with an unfinished interior.
Key Highlights
- 2016‑built restaurant property at 5838 Schaefer Road, Dearborn, MI 48126
- Established café layout with interior buildout included
- Commercial hood system in place
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
$13,680
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%
$273,600
$273.6K
Cap Rate 7%
$195,429
$195.4K
Cap Rate 9%
$152,000
$152.0K
Market Conditions
NOI Build-Up for 1,000 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
$19.2K $19.20/SF
− Vacancy
−$960 −$0.96/SF
EGI
$18.2K $18.24/SF
− OpEx
−$4.6K −$4.56/SF
NOI
$13.7K $13.68/SF
Area
Dearborn, MI
Vacancy
5.00%
Lease Rate
$19.20 /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%
$273,600
Cap Rate 7%
$195,429
Cap Rate 9%
$152,000
Alternative Uses
Best Use
Specialty Retail
$195.4K
$171.0K – $228.0K
NOI $13,680 @ 7.0% cap · market cap 6.84%
Second Best
Retail
$176.0K
$154.0K – $205.3K
NOI $12,317 @ 7.0% cap · market cap 6.16%
Theoretical Best
Office A
$220.6K
$193.0K – $257.4K
NOI $15,442 @ 7.0% cap · market cap 7.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
989
Businesses Nearby
97k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 60%
Dining 40%
McDonald's
Dining
20,883 visits/mo
0.3 miles
Dollar Tree
Shops & Services
15,469 visits/mo
0.2 miles
Exxon
Shops & Services
11,244 visits/mo
0.5 miles
SUBWAY
Dining
9,910 visits/mo
0.1 miles
Shell
Shops & Services
8,472 visits/mo
0.2 miles
Demographics for 48126, MI
55,863
Population
16,919
Households
3.3
Avg Household Size
28
Median Age
24%
College-Educated
74%
High-School Grad
8.4 sq mi
ZIP Area
6,650
Density / Sq Mi
$42,353
Median Household Income
$27,724
Median Earnings
$1,222
Median Rent
$200,600
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 - Established restaurant configuration with commercial hood, fixtures, and operating equipment included.
Where is this conventional restaurant located?
The property is located at 5838 Schaefer Road Dearborn, MI.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: 2016‑built restaurant property at 5838 Schaefer Road, Dearborn, MI 48126; Established café layout with interior buildout included; Commercial hood system in place
