Eastern Market Medical Services
For Sale
Contact for pricing
2851 Russell St, Detroit, MI 48207
Modern medical facility in Detroit's historic Eastern Market.
Property Size48,960 SF
Price / SF$325
Days on Market1028
Property Features for 2851 Russell St
General Information
Standard status
Active
Size
48,960 SF
Class
A
Property subtype
Office
Zoning
commercial
Investment Type
Sale/Leaseback
Net Operating Income
$1,272,960
Building Details
Year Built
1987
Year Renovated
2020
Buildings
1
Stories
2
Tenancy
Single
Listing Agency:
CRS, Commercial Real Estate Services
Listed By:
Leo Gonzalez · License #MI 6502126741
Source:
Crexi
Added: Oct 31, 2023
Changed: Aug 23
Last Checked: Aug 22 at 6:12AM
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 CRS, Commercial Real Estate Services
Investment Insights
Based on property information with market context.
This property offers a modern medical facility in the Eastern Market area, which has been established for 150 years and is experiencing new residential growth and overall gentrification. Team Wellness Center has been providing services and care to adults with severe and chronic mental illness in Southeast Michigan since 2002. The center is dedicated to enhancing the wellbeing of individuals by providing an array of comprehensive behavioral and physical health services. Services include substance use, primary care, child/adolescent, and dental services. Team Wellness has invested in new HVAC units, a new roof, and updates throughout the facility. The property is well-positioned near Eastern Market to serve the community's need for medical services. It offers full medical services, private parking, and modern facilities. Team Wellness is the largest mental health care provider in Wayne County and one of the largest for-profit mental health care providers in the Midwest, providing extensive mental health programs for all ages, dental, diet and exercise counseling, and integrated primary care services to over 4,000 patients weekly. The Eastern Market consists of over 150 businesses forming an authentic food-centric district open every day. The subject property offers on-site parking and public parking. The property has future opportunity for redevelopment and expansion of the building. The building size is 48,960 square feet.
Key Highlights
- Largest mental health care provider in Wayne County and one of the largest in the Midwest, serving over 4,000 patients weekly.
- Full medical services including mental health for all ages, dental, diet and exercise counseling, and integrated primary care.
- Located in the Eastern Market area, one of the oldest and largest year‑round markets in the United States, with over 150 businesses.
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
$507,617
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
3.19%
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%
$10,152,340
$10.2M
Cap Rate 7%
$7,251,671
$7.3M
Cap Rate 9%
$5,640,189
$5.6M
Market Conditions
NOI Build-Up for 48,960 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
$940.0K $19.20/SF
− Vacancy
−$94.0K −$1.92/SF
EGI
$846.0K $17.28/SF
− OpEx
−$338.4K −$6.91/SF
NOI
$507.6K $10.37/SF
Area
Detroit, MI
Vacancy
10.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
40.00%
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%
$10,152,340
Cap Rate 7%
$7,251,671
Cap Rate 9%
$5,640,189
Alternative Uses
Best Use
Healthcare Medical
$7.25M
$6.35M – $8.46M
NOI $507,617 @ 7.0% cap · market cap 3.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.80M
$9.45M – $12.60M
NOI $756,054 @ 7.0% cap · market cap 4.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
986
Businesses Nearby
Explore this area
Business Placement
Demographics for 48207, MI
21,704
Population
13,026
Households
1.7
Avg Household Size
42
Median Age
35%
College-Educated
88%
High-School Grad
6.3 sq mi
ZIP Area
3,445
Density / Sq Mi
$44,561
Median Household Income
$43,377
Median Earnings
$1,040
Median Rent
$193,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Modern medical facility in Detroit's historic Eastern Market.
Where is this medical center located?
The property is located at 2851 Russell St Detroit, MI.
What is the asking price?
The asking price for this property is $15,912,000.
What are key features of this property?
This property features: Largest mental health care provider in Wayne County and one of the largest in the Midwest, serving over 4,000 patients weekly.; Full medical services including mental health for all ages, dental, diet and exercise counseling, and integrated primary care.; Located in the Eastern Market area, one of the oldest and largest year‑round markets in the United States, with over 150 businesses.
