Freestanding Flex Warehouse with 12
For Sale
$1,299,999
870 Cesar E Chavez Avenue, Pontiac, MI 48340
Freestanding flex/warehouse with C-3 zoning, 12 overhead doors, and warehouse-office-showroom-service layout.
Property Size22,670 SF
Days on Market37
Property Features for 870 Cesar E Chavez Avenue
General Information
Standard status
Active
Size
22,670 SF
Property subtype
Commercial
Zoning
Light Industry
Additional Details
Clear Height
14 ft
Building Details
Building Size
22,670 SF
Year Built
1978
Listing Agency:
C3 CRE, LLC
(248) 752-1276
Listed By:
Corbin Yaldoo · License #6502431997
(248) 752-1276
Source:
Homesforsaleinmich
Added: Jul 21
Changed: Aug 23
Last Checked: Aug 25 at 9:25AM
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 C3 CRE, LLC
Investment Insights
Based on property information with market context.
Freestanding flex/industrial warehouse with a functional layout that combines warehouse space with office, showroom, and service areas. The building includes existing automotive infrastructure, including an existing paint booth, supporting immediate functionality for a range of end users. Loading and vehicle access are supported by twelve (12) overhead doors, and the warehouse ceiling heights are approximately 12–14 feet. The property also includes pylon signage, ample on-site parking, and outdoor storage potential. Built in 1978, the facility offers a practical configuration for automotive and light industrial-oriented operations.
The property is located at 870 Cesar E Chavez Ave, Pontiac, MI 48340, within C-3 Corridor Commercial zoning in the Adult-Use Cesar Chavez overlay district. The zoning allows for a variety of retail, office, service commercial, light industrial, automotive, and select adult-use cannabis uses. The location is within a designated cannabis Green Zone and is eligible for Adult-Use Cultivation and Processing, subject to the operator applying for their own municipal licensing and approvals.
The combination of overhead door access, interior office/showroom/service areas, and existing paint booth infrastructure supports a tenant looking for a warehouse-centric facility with automotive-ready capabilities.
The property is located at 870 Cesar E Chavez Ave, Pontiac, MI 48340, within C-3 Corridor Commercial zoning in the Adult-Use Cesar Chavez overlay district. The zoning allows for a variety of retail, office, service commercial, light industrial, automotive, and select adult-use cannabis uses. The location is within a designated cannabis Green Zone and is eligible for Adult-Use Cultivation and Processing, subject to the operator applying for their own municipal licensing and approvals.
The combination of overhead door access, interior office/showroom/service areas, and existing paint booth infrastructure supports a tenant looking for a warehouse-centric facility with automotive-ready capabilities.
Key Highlights
- C‑3 Corridor Commercial zoning in the Adult‑Use Cesar Chavez overlay district
- Designated cannabis Green Zone eligibility for adult‑use cultivation and processing; municipal licensing approvals required
- Freestanding flex/warehouse layout with warehouse, office, showroom, and service 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
$112,322
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
8.64%
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%
$2,246,440
$2.2M
Cap Rate 7%
$1,604,600
$1.6M
Cap Rate 9%
$1,248,022
$1.2M
Market Conditions
NOI Build-Up for 22,670 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
$166.6K $7.35/SF
− Vacancy
−$6.2K −$0.27/SF
EGI
$160.5K $7.08/SF
− OpEx
−$48.1K −$2.12/SF
NOI
$112.3K $4.95/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /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%
$2,246,440
Cap Rate 7%
$1,604,600
Cap Rate 9%
$1,248,022
Alternative Uses
Best Use
Flex RnD
$3.35M
$2.93M – $3.91M
NOI $234,471 @ 7.0% cap · market cap 18.04%
Second Best
Warehouse
$1.95M
$1.70M – $2.27M
NOI $136,390 @ 7.0% cap · market cap 10.49%
Theoretical Best
Specialty Retail
$4.89M
$4.28M – $5.70M
NOI $342,281 @ 7.0% cap · market cap 26.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14 ft
Clear height
Location Intelligence
Trade Area within ½ mile
250
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48340, MI
26,039
Population
12,154
Households
2.1
Avg Household Size
33
Median Age
15%
College-Educated
82%
High-School Grad
7.7 sq mi
ZIP Area
3,382
Density / Sq Mi
$46,474
Median Household Income
$32,954
Median Earnings
$1,096
Median Rent
$105,800
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Freestanding flex/warehouse with C-3 zoning, 12 overhead doors, and warehouse-office-showroom-service layout.
Where is this flex space located?
The property is located at 870 Cesar E Chavez Avenue Pontiac, 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: C‑3 Corridor Commercial zoning in the Adult‑Use Cesar Chavez overlay district; Designated cannabis Green Zone eligibility for adult‑use cultivation and processing; municipal licensing approvals required; Freestanding flex/warehouse layout with warehouse, office, showroom, and service areas
