Bar Property with Built-Out
For Sale
$1,299,999
8140 Michigan Ave, Detroit, MI 48210
Existing food-service improvements and an attached Wayne County Class C liquor license support continued bar operations.
Property Size4,300 SF
Price / SF$302.33
Days on Market40
Property Features for 8140 Michigan Ave
General Information
Standard status
Active
Size
4,300 SF
Additional Details
Liquor License
Yes
Building Details
Year Built
1951
Listing Agency:
New Michigan Realty, LLC
(586) 634-0365
Listed By:
Joseph Tinpan · License #6501306210
Source:
Katie-k
Added: Jul 20
Changed: Aug 28
Last Checked: Aug 25 at 4:57AM
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 bar property includes a fully built-out kitchen and an existing Wayne County Class C liquor license attached to the building. The license is included with the sale, providing an established operating component for a future bar or food-service concept.
The property is located at 8140 Michigan Avenue in Detroit, Michigan, within Wayne County.
The property is located at 8140 Michigan Avenue in Detroit, Michigan, within Wayne County.
Key Highlights
- Fully built‑out kitchen in place
- Wayne County Class C liquor license attached to the building
- Liquor license included with the sale
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
—
—
no second resolved use
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
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
452
Businesses Nearby
45k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 68%
Dining 22%
Home Improvements & Furnishings 5%
Electronics 5%
Little Caesars Pizza
Dining
9,680 visits/mo
0.2 miles
Citgo
Shops & Services
8,129 visits/mo
0.1 miles
Family Dollar
Shops & Services
7,405 visits/mo
0.0 miles
Sunoco
Shops & Services
6,073 visits/mo
0.2 miles
Comerica Bank
Shops & Services
4,382 visits/mo
0.2 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?
Bar & Pub - Existing food-service improvements and an attached Wayne County Class C liquor license support continued bar operations.
Where is this bar & pub 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: Fully built‑out kitchen in place; Wayne County Class C liquor license attached to the building; Liquor license included with the sale
