Renovated Restaurant Building For
For Sale
Contact for pricing
31519 W 12 Mile Rd, Farmington Hills, MI 48334
Freestanding, two-story restaurant with outdoor patio and elevator.
Property Size8,108 SF
Price / SF$431.67
Days on Market797
Property Features for 31519 W 12 Mile Rd
General Information
Standard status
Active
Size
8,108 SF
Class
A
Property subtype
Retail
Zoning
BI
Building Details
Year Built
1995
Listing Agency:
Central Properties Group LLC
(248) 752-4311
Listed By:
Ian Whitelaw · License #6502385342
Source:
Crexi
Added: Jun 17, 2024
Changed: Aug 21
Last Checked: Aug 21 at 11:21AM
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 Central Properties Group LLC
Investment Insights
Based on property information with market context.
For sale is a renovated freestanding building currently tenanted by a Chinese restaurant. The restaurant occupies two levels and includes an outdoor patio and an elevator. Monument signage is present along 12 Mile Road, west of Orchard Lake Road and across from a Starbucks. The property is located in an area with restaurants, banks, and other amenities. The building, formerly known as Tribute Restaurant, was renovated in 2022. The property offers freeway access and is in good condition. The building size is 8108 square feet.
Key Highlights
- Tenant is one of Michigan's finest Chinese restaurants.
- Tenant looking to sign new long‑term lease with new owners.
- Completely renovated in 2022.**
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
$122,418
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
3.50%
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%
$2,448,360
$2.4M
Cap Rate 7%
$1,748,829
$1.7M
Cap Rate 9%
$1,360,200
$1.4M
Market Conditions
NOI Build-Up for 8,108 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
$175.1K $21.60/SF
− Vacancy
−$11.9K −$1.47/SF
EGI
$163.2K $20.13/SF
− OpEx
−$40.8K −$5.03/SF
NOI
$122.4K $15.10/SF
Area
Oakland County, MI
Vacancy
6.80%
Lease Rate
$21.60 /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%
$2,448,360
Cap Rate 7%
$1,748,829
Cap Rate 9%
$1,360,200
Alternative Uses
Best Use
Specialty Retail
$1.75M
$1.53M – $2.04M
NOI $122,418 @ 7.0% cap · market cap 3.50%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
676
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48334, MI
18,731
Population
8,528
Households
2.2
Avg Household Size
45
Median Age
59%
College-Educated
96%
High-School Grad
9.1 sq mi
ZIP Area
2,058
Density / Sq Mi
$98,937
Median Household Income
$56,067
Median Earnings
$1,511
Median Rent
$327,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Freestanding, two-story restaurant with outdoor patio and elevator.
Where is this conventional restaurant located?
The property is located at 31519 W 12 Mile Rd Farmington Hills, MI.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Tenant is one of Michigan's finest Chinese restaurants.; Tenant looking to sign new long‑term lease with new owners.; Completely renovated in 2022.**
