Building Details

Year Built 1961

Year Renovated 2015

Buildings 1

Stories 1

Units 1

Tenancy Single

Listing Agency: Pilot Property Group t***@pilotpg.com Show Phone

Listed By: Tony Cavataio · License #MI

Source: Crexi

Added: Mar 1, 2024 Changed: Aug 10 Last Checked: Aug 20 at 1:02AM

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Investment Insights

Based on property information with market context.

Key Highlights

• Turn‑key business opportunity
• Event venue and small gathering hall
• Located north of downtown Romeo

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

$8,449

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

3.93%

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%

$168,980 $169.0K

Cap Rate 7%

$120,700 $120.7K

Cap Rate 9%

$93,878 $93.9K

Market Conditions

NOI Build-Up for 1,143 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

$13.7K $12.00/SF

− Vacancy

−$1.6K −$1.44/SF

EGI

$12.1K $10.56/SF

− OpEx

−$3.6K −$3.17/SF

NOI

$8.4K $7.39/SF

Area

Macomb County, MI

Vacancy

12.00%

Lease Rate

$12.00 /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%

$168,980

Cap Rate 7%

$120,700

Cap Rate 9%

$93,878

Alternative Uses

Best Use

Retail

$120.7K

$105.6K – $140.8K (±1% cap)

NOI $8,449 @ 7.0% cap · market cap 3.93%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$214.0K

$187.2K – $249.7K (±1% cap)

NOI $14,979 @ 7.0% cap · market cap 6.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Building Supply Auto Repair Shop Carpet & Flooring Store Hotel & Motel Bed & Breakfast Food Market

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

8

Businesses Nearby

Explore this area Business Placement

Demographics for 48065, MI

11,228

Population

4,672

Households

2.4

Avg Household Size

44

Median Age

34%

College-Educated

91%

High-School Grad

37.4 sq mi

ZIP Area

300

Density / Sq Mi

$104,348

Median Household Income

$47,892

Median Earnings

$1,047

Median Rent

$341,000

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

Where is this retail space located?

The property is located at 70941 Van Dyke Rd Bruce Township, MI.

What is the asking price?

The asking price for this property is $215,000.

What are key features of this property?

This property features: Turn‑key business opportunity; Event venue and small gathering hall; Located north of downtown Romeo