Redevelopment Opportunity on Ann
For Sale
Contact for pricing
Pending
38165 Ann Arbor Rd, Livonia, MI 48150
4,000 SF retail space on 0.92 acres for sale.
Property Size4,000 SF
Lot Size0.92 Acres
Days on Market780
Property Features for 38165 Ann Arbor Rd
General Information
Standard status
Pending
Size
4,000 SF
Class
C
Lot size
0.92 Acres
Property subtype
Retail
Zoning
C-2 General Business District
Investment Type
Redevelopment
Listing Agency:
Signature Associates Warren
(248) 799-3161
Listed By:
Drake Filippis · License #MI
Source:
Crexi
Added: Jul 9, 2024
Changed: Aug 8
Last Checked: Jul 25 at 11:56AM
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 Signature Associates Warren
Investment Insights
Based on property information with market context.
This property features 4,000 square feet of retail space situated on 0.92 acres. It is zoned C-2, General Business District, presenting a redevelopment opportunity. The location benefits from high visibility with an annual average daily traffic count of 42,637 vehicles per day. Additionally, the property offers convenient access to I-275 and I-96. The seller is motivated.
Key Highlights
- High traffic location: 42,637 vehicles per day
- Convenient access to I‑275 and I‑96
- Sizeable land: 0.92 acres
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
$37,901
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
4.46%
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%
$758,020
$758.0K
Cap Rate 7%
$541,443
$541.4K
Cap Rate 9%
$421,122
$421.1K
Market Conditions
NOI Build-Up for 4,000 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
$57.6K $14.40/SF
− Vacancy
−$3.5K −$0.86/SF
EGI
$54.1K $13.54/SF
− OpEx
−$16.2K −$4.06/SF
NOI
$37.9K $9.48/SF
Area
Wayne County, MI
Vacancy
6.00%
Lease Rate
$14.40 /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%
$758,020
Cap Rate 7%
$541,443
Cap Rate 9%
$421,122
Alternative Uses
Best Use
Retail
$541.4K
$473.8K – $631.7K
NOI $37,901 @ 7.0% cap · market cap 4.46%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$740.6K
$648.0K – $864.0K
NOI $51,840 @ 7.0% cap · market cap 6.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
310
Businesses Nearby
59k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 51%
Shops & Services 47%
Electronics 3%
McDonald's
Dining
22,335 visits/mo
0.1 miles
Dollar Tree
Shops & Services
14,453 visits/mo
0.1 miles
7-Eleven
Shops & Services
10,686 visits/mo
0.3 miles
BIGGBY COFFEE
Dining
5,908 visits/mo
0.1 miles
Mobil
Shops & Services
2,581 visits/mo
0.1 miles
Demographics for 48150, MI
26,573
Population
10,724
Households
2.5
Avg Household Size
42
Median Age
36%
College-Educated
96%
High-School Grad
12.1 sq mi
ZIP Area
2,196
Density / Sq Mi
$94,058
Median Household Income
$50,779
Median Earnings
$1,328
Median Rent
$228,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - 4,000 SF retail space on 0.92 acres for sale.
Where is this retail space located?
The property is located at 38165 Ann Arbor Rd Livonia, 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: High traffic location: 42,637 vehicles per day; Convenient access to I‑275 and I‑96; Sizeable land: 0.92 acres
