Kercheval Avenue Mixed-Use
For Sale
$1,190,000
8116 Kercheval St, Detroit, MI 48214
Three renovated mixed-use buildings with retail and residential units.
Property Size5,215 SF
Lot Size0.21 Acres
Days on Market266
Property Features for 8116 Kercheval St
General Information
Standard status
Active
Size
5,215 SF
Lot size
0.21 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$4,219
Building Details
Building Size
5,215 SF
Year Built
1916
Listing Agency:
O'Connor Real Estate
(313) 963-9891
Listed By:
Vincent Mazzola · License #6501387170
(313) 963-9891
Source:
Elliman
Added: Nov 27, 2025
Changed: Aug 11
Last Checked: Aug 20 at 12:05PM
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 O'Connor Real Estate
Investment Insights
Based on property information with market context.
Located on Kercheval Avenue between Parker and Seminole Streets in Detroit’s West Village, the property consists of three historic mixed-use buildings. Fully renovated in 2016, the buildings include both retail and residential units. The ground floor is fully leased to Two Birds, a bar and ice cream shop currently expanding into an adjacent retail space, and Velvet Tower, a vintage clothing store. The second floor includes three residential units ranging from 720 to 1,106 square feet, currently operated as short-term rentals. The property features a wrap-around terrace/community space that connects the buildings and provides additional usable outdoor area. Positioned a block from neighborhood landmarks Sister Pie and Marrow, this property is located in a commercially established section of West Village.
Key Highlights
- Prime location in Detroit's desirable West Village, near Sister Pie and Marrow.
- Fully renovated in 2016, mixed‑use property with retail and residential units.
- Ground floor fully leased to established businesses (Two Birds and Velvet Tower).
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
$68,821
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
5.78%
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%
$1,376,420
$1.4M
Cap Rate 7%
$983,157
$983.2K
Cap Rate 9%
$764,678
$764.7K
Market Conditions
NOI Build-Up for 5,215 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
$97.0K $18.60/SF
− Vacancy
−$5.2K −$1.00/SF
EGI
$91.8K $17.60/SF
− OpEx
−$22.9K −$4.40/SF
NOI
$68.8K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$1,376,420
Cap Rate 7%
$983,157
Cap Rate 9%
$764,678
Alternative Uses
Best Use
Specialty Retail
$983.2K
$860.3K – $1.15M
NOI $68,821 @ 7.0% cap · market cap 5.78%
Second Best
Retail
$917.6K
$802.9K – $1.07M
NOI $64,233 @ 7.0% cap · market cap 5.40%
Theoretical Best
Office A
$1.15M
$1.01M – $1.34M
NOI $80,531 @ 7.0% cap · market cap 6.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
641
Businesses Nearby
Explore this area
Business Placement
Demographics for 48214, MI
18,959
Population
13,279
Households
1.4
Avg Household Size
44
Median Age
27%
College-Educated
84%
High-School Grad
5.1 sq mi
ZIP Area
3,717
Density / Sq Mi
$34,807
Median Household Income
$36,625
Median Earnings
$818
Median Rent
$120,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three renovated mixed-use buildings with retail and residential units.
Where is this mixed-use property located?
The property is located at 8116 Kercheval St Detroit, MI.
What is the asking price?
The asking price for this property is $1,190,000.
What are key features of this property?
This property features: Prime location in Detroit's desirable West Village, near Sister Pie and Marrow.; Fully renovated in 2016, mixed‑use property with retail and residential units.; Ground floor fully leased to established businesses (Two Birds and Velvet Tower).
