Turnkey Restaurant with Built-In
For Sale
$1,299,999
8140 MICHIGAN AVE, Detroit, MI 48210
Turnkey restaurant with a fully built-out kitchen and an included Wayne County Class C liquor license attached to the building.
Property Size4,300 SF
Price / SF$302.33
Days on Market77
Property Features for 8140 MICHIGAN AVE
General Information
Standard status
Active
Size
4,300 SF
Property subtype
Industrial
Additional Details
Business Included
Yes
Liquor License
Yes
Amenities
3
40100
Building Details
Year Built
19
Listing Agency:
New Michigan Realty, LLC
(586) 634-0365
Listed By:
Joseph Tinpan · License #6501306210
(586) 634-0365
Source:
Xome
Added: May 28
Changed: Aug 7
Last Checked: Aug 11 at 5:43AM
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 New Michigan Realty, LLC
Investment Insights
Based on property information with market context.
This turnkey restaurant offering includes a fully built-out kitchen, designed for immediate use. The property is being sold with a Wayne County Class C liquor license included in the asking price and already attached to the building.
Located at 8140 Michigan Avenue in Detroit, the space is positioned to serve restaurant operators seeking an existing, ready-to-run setup.
With the kitchen improvements already in place and the liquor license included, this property presents a streamlined path for an operator looking to launch from the existing build-out.
Located at 8140 Michigan Avenue in Detroit, the space is positioned to serve restaurant operators seeking an existing, ready-to-run setup.
With the kitchen improvements already in place and the liquor license included, this property presents a streamlined path for an operator looking to launch from the existing build-out.
Key Highlights
- Turnkey restaurant space with a fully built‑out kitchen
- Wayne County Class C liquor license included and already attached to the building
- Property located on Michigan Avenue (Wayne County)
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
$56,746
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
4.37%
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%
$1,134,920
$1.1M
Cap Rate 7%
$810,657
$810.7K
Cap Rate 9%
$630,511
$630.5K
Market Conditions
NOI Build-Up for 4,300 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
$80.0K $18.60/SF
− Vacancy
−$4.3K −$1.00/SF
EGI
$75.7K $17.60/SF
− OpEx
−$18.9K −$4.40/SF
NOI
$56.7K $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%
$1,134,920
Cap Rate 7%
$810,657
Cap Rate 9%
$630,511
Alternative Uses
Best Use
Specialty Retail
$810.7K
$709.3K – $945.8K
NOI $56,746 @ 7.0% cap · market cap 4.37%
Second Best
Industrial
$298.8K
$261.4K – $348.6K
NOI $20,914 @ 7.0% cap · market cap 1.61%
Theoretical Best
Office A
$948.6K
$830.0K – $1.11M
NOI $66,402 @ 7.0% cap · market cap 5.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
84k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Shops & Services 47%
Electronics 5%
McDonald's
Dining
25,108 visits/mo
0.1 miles
BP
Shops & Services
18,541 visits/mo
0.4 miles
Little Caesars Pizza
Dining
9,680 visits/mo
0.4 miles
Family Dollar
Shops & Services
7,560 visits/mo
0.4 miles
AutoZone
Shops & Services
6,688 visits/mo
0.3 miles
Demographics for 48210, MI
27,155
Population
10,576
Households
2.6
Avg Household Size
28
Median Age
9%
College-Educated
57%
High-School Grad
4.9 sq mi
ZIP Area
5,542
Density / Sq Mi
$38,900
Median Household Income
$25,220
Median Earnings
$968
Median Rent
$60,100
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Turnkey restaurant with a fully built-out kitchen and an included Wayne County Class C liquor license attached to the building.
Where is this commercial kitchen located?
The property is located at 8140 MICHIGAN AVE Detroit, MI.
What is the asking price?
The asking price for this property is $1,299,999.
What are key features of this property?
This property features: Turnkey restaurant space with a fully built‑out kitchen; Wayne County Class C liquor license included and already attached to the building; Property located on Michigan Avenue (Wayne County)
