Cannabis-Approved Industrial
For Sale
$1,400,000
65700 GRATIOT AVENUE LENOX, New Haven, MI 48050
CG-zoned facility with approvals for cultivation, processing, and dispensary operations.
Property Size12,538 SF
Days on Market194
Property Features for 65700 GRATIOT AVENUE LENOX
General Information
Standard status
Active
Size
12,538 SF
Property subtype
Warehouse
Building Details
Building Size
12,538 SF
Year Built
1979
Listing Agency:
The Jonna Group
(248) 226-1610
Listed By:
Simon Jonna · License #6501357188
(248) 226-1610
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 10:17AM
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 The Jonna Group
Investment Insights
Based on property information with market context.
This 1979 industrial property in Lenox Township is configured as a mini-warehouse and carries CG zoning. The facility is licensed for recreational cannabis cultivation, with approval for a Class C license supporting up to 2,000 plants. Processing and dispensary operations are also approved.
The property is located at 65700 Gratiot Avenue, near the Gratiot Avenue and 31 Mile Road intersection. Lenox Township includes farmland, wetlands, and wooded areas, while Gratiot Avenue is identified as one of the township’s more developed corridors. The site is approximately 40 miles north of Detroit and within a five-mile area reporting average household income above $94,000.
The source information also identifies auto repair, contractor, distribution, and warehouse uses as suitable applications for the property.
The property is located at 65700 Gratiot Avenue, near the Gratiot Avenue and 31 Mile Road intersection. Lenox Township includes farmland, wetlands, and wooded areas, while Gratiot Avenue is identified as one of the township’s more developed corridors. The site is approximately 40 miles north of Detroit and within a five-mile area reporting average household income above $94,000.
The source information also identifies auto repair, contractor, distribution, and warehouse uses as suitable applications for the property.
Key Highlights
- Approved Class C license for cultivation of up to 2,000 plants
- Licensed for recreational cannabis cultivation
- Processing and dispensary operations approved
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
$82,094
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
5.86%
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%
$1,641,880
$1.6M
Cap Rate 7%
$1,172,771
$1.2M
Cap Rate 9%
$912,156
$912.2K
Market Conditions
NOI Build-Up for 12,538 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
$102.3K $8.16/SF
− Vacancy
−$5.7K −$0.46/SF
EGI
$96.6K $7.70/SF
− OpEx
−$14.5K −$1.16/SF
NOI
$82.1K $6.55/SF
Area
Macomb County, MI
Vacancy
5.60%
Lease Rate
$8.16 /SF/Yr
Expense Ratio
15.00%
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%
$1,641,880
Cap Rate 7%
$1,172,771
Cap Rate 9%
$912,156
Alternative Uses
Best Use
Warehouse
$1.17M
$1.03M – $1.37M
NOI $82,094 @ 7.0% cap · market cap 5.86%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.35M
$2.05M – $2.74M
NOI $164,312 @ 7.0% cap · market cap 11.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
39
Businesses Nearby
Explore this area
Business Placement
Demographics for 48050, MI
1,553
Population
537
Households
2.9
Avg Household Size
49
Median Age
20%
College-Educated
93%
High-School Grad
18.6 sq mi
ZIP Area
83
Density / Sq Mi
$88,804
Median Household Income
$59,438
Median Earnings
$329,300
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Cannabis property - CG-zoned facility with approvals for cultivation, processing, and dispensary operations.
Where is this cannabis property located?
The property is located at 65700 GRATIOT AVENUE LENOX New Haven, MI.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Approved Class C license for cultivation of up to 2,000 plants; Licensed for recreational cannabis cultivation; Processing and dispensary operations approved
