Commercial Kitchen Building With Five
For Sale
Contact for pricing
8443 Grand River Ave, Detroit, MI 48204
Multi-unit facility combines food-service areas with dining and lounge space for varied commercial operations.
Property Size13,000 SF
Price / SF$65.38
Days on Market295
Property Features for 8443 Grand River Ave
General Information
Standard status
Active
Size
13,000 SF
Property subtype
RETAIL
Listing Agency:
SVN-Cohn Commercial Properties
(248) 818-0010
Listed By:
Harry Cohn · License #07986251
(248) 818-0010
Source:
Moodyscre
Added: Nov 10, 2025
Changed: Aug 30
Last Checked: Aug 31 at 2:15AM
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 SVN-Cohn Commercial Properties
Investment Insights
Based on property information with market context.
This 13,000-square-foot commercial kitchen property contains five units within a building constructed in 1929 and renovated in 2016. The interior includes dedicated dining and lounge areas, supporting food-service concepts alongside additional commercial configurations.
The property can accommodate restaurant operations, culinary concepts, and ghost kitchens. Its layout also supports event-oriented uses identified for the building, including nightclub, banquet hall, and corporate event functions. Portions of the building or the full property may be leased, providing flexibility for occupancy planning.
The property can accommodate restaurant operations, culinary concepts, and ghost kitchens. Its layout also supports event-oriented uses identified for the building, including nightclub, banquet hall, and corporate event functions. Portions of the building or the full property may be leased, providing flexibility for occupancy planning.
Key Highlights
- 13,000 SF building with five units
- Built in 1929 and renovated in 2016
- Includes dining and lounge areas
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
$63,228
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
7.44%
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%
$1,264,560
$1.3M
Cap Rate 7%
$903,257
$903.3K
Cap Rate 9%
$702,533
$702.5K
Market Conditions
NOI Build-Up for 13,000 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
$95.2K $7.32/SF
− Vacancy
−$4.8K −$0.37/SF
EGI
$90.3K $6.95/SF
− OpEx
−$27.1K −$2.08/SF
NOI
$63.2K $4.86/SF
Area
Detroit, MI
Vacancy
5.08%
Lease Rate
$7.32 /SF/Yr
Expense Ratio
30.00%
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%
$1,264,560
Cap Rate 7%
$903,257
Cap Rate 9%
$702,533
Alternative Uses
Best Use
Specialty Retail
$2.45M
$2.14M – $2.86M
NOI $171,557 @ 7.0% cap · market cap 20.18%
Second Best
Industrial
$903.3K
$790.4K – $1.05M
NOI $63,228 @ 7.0% cap · market cap 7.44%
Theoretical Best
Office A
$2.87M
$2.51M – $3.35M
NOI $200,750 @ 7.0% cap · market cap 23.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
247
Businesses Nearby
Explore this area
Business Placement
Demographics for 48204, MI
21,738
Population
13,691
Households
1.6
Avg Household Size
37
Median Age
10%
College-Educated
83%
High-School Grad
5.0 sq mi
ZIP Area
4,348
Density / Sq Mi
$32,875
Median Household Income
$26,701
Median Earnings
$970
Median Rent
$53,600
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 - Multi-unit facility combines food-service areas with dining and lounge space for varied commercial operations.
Where is this commercial kitchen located?
The property is located at 8443 Grand River Ave Detroit, MI.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 13,000 SF building with five units; Built in 1929 and renovated in 2016; Includes dining and lounge areas
