Bar and Restaurant with Heated
For Sale
$749,900
8867 LIVERNOIS AVE, Detroit, MI 48204
Built-out bar and restaurant with indoor and outdoor seating, heated patio, and surface parking included with the sale.
Property Size2,400 SF
Price / SF$312.46
Days on Market200
Property Features for 8867 LIVERNOIS AVE
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Industrial
Additional Details
Business Included
Yes
Liquor License
Yes
Amenities
3
3088
Building Details
Year Built
19
Listing Agency:
BE Realty Team
(586) 212-8820
Listed By:
George Basta
(586) 212-8820
Source:
Xome
Added: Jan 23
Changed: Aug 8
Last Checked: Aug 11 at 5:41AM
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 BE Realty Team
Investment Insights
Based on property information with market context.
This newly established bar and restaurant space has been fully built-out and renovated, with a complete audio sound system, camera system, security system, and POS system. The sale includes all assets listed in the remarks, including the building and liquor license, along with furniture and stock. The concept supports occupancy for up to 120 people, with indoor and outdoor seating and heated patio seating.
Located just south of the Avenue of Fashion on Livernois in Detroit, the property also includes a substantial surface lot for parking. The Joe Louis Greenway, a 27.5-mile biking and walking trail that extends to the Detroit Riverfront, is directly adjacent to the property.
For buyers seeking an operationally ready, turn-key bar and restaurant offering, the current buildout and included systems support an immediate transition for qualified operators.
Located just south of the Avenue of Fashion on Livernois in Detroit, the property also includes a substantial surface lot for parking. The Joe Louis Greenway, a 27.5-mile biking and walking trail that extends to the Detroit Riverfront, is directly adjacent to the property.
For buyers seeking an operationally ready, turn-key bar and restaurant offering, the current buildout and included systems support an immediate transition for qualified operators.
Key Highlights
- Newly developed 2,600+ sq. ft. built‑out bar and restaurant space with indoor and outdoor seating
- Heated patio seating for added outdoor use
- Over 2,000 sq. ft. surface lot space included for parking
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
$31,672
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
4.22%
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%
$633,440
$633.4K
Cap Rate 7%
$452,457
$452.5K
Cap Rate 9%
$351,911
$351.9K
Market Conditions
NOI Build-Up for 2,400 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
$44.6K $18.60/SF
− Vacancy
−$2.4K −$1.00/SF
EGI
$42.2K $17.60/SF
− OpEx
−$10.6K −$4.40/SF
NOI
$31.7K $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%
$633,440
Cap Rate 7%
$452,457
Cap Rate 9%
$351,911
Alternative Uses
Best Use
Specialty Retail
$452.5K
$395.9K – $527.9K
NOI $31,672 @ 7.0% cap · market cap 4.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$529.4K
$463.3K – $617.7K
NOI $37,061 @ 7.0% cap · market cap 4.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
315
Businesses Nearby
68k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 72%
Shops & Services 28%
McDonald's
Dining
27,407 visits/mo
0.2 miles
Wendy's
Dining
14,200 visits/mo
0.2 miles
BP
Shops & Services
7,019 visits/mo
0.3 miles
KFC
Dining
6,262 visits/mo
0.3 miles
Valero Energy
Shops & Services
5,361 visits/mo
0.4 miles
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
$53,600
Median Home Value
Market
Vacancy Rate% for Retail in Detroit, MI
Questions? Ask Rey
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Similar Off Market Nearby
- STAK$ Bar And Grill — 8755 W Grand River Ave, Detroit, MI 48204
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- Varsity Lounge — 8867 Livernois, Detroit, MI 48204
Frequently Asked Questions
What type of property is this?
Bar & Pub - Built-out bar and restaurant with indoor and outdoor seating, heated patio, and surface parking included with the sale.
Where is this bar & pub located?
The property is located at 8867 LIVERNOIS AVE Detroit, MI.
What is the asking price?
The asking price for this property is $749,900.
What are key features of this property?
This property features: Newly developed 2,600+ sq. ft. built‑out bar and restaurant space with indoor and outdoor seating; Heated patio seating for added outdoor use; Over 2,000 sq. ft. surface lot space included for parking
