Former Burger King
For Sale
$950,000
9871 Livernois Ave, Detroit, MI 48204
Freestanding B4-zoned restaurant property with drive-thru service, dine-in capacity, and on-site parking.
Property Size2,127 SF
Price / SF$446.64
Days on Market91
Property Features for 9871 Livernois Ave
General Information
Standard status
Active
Size
2,127 SF
Property subtype
Retail
Zoning
B4
Site & Location
Drive-Thru
Yes
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
2,127 SF
Year Built
1988
Buildings
1
Listing Agency:
Keystone Commercial Real Estate
(248) 406-7116
Listed By:
Ferris Hamama · License #6501255590
Source:
Keystonecres
Added: Jun 2
Changed: Aug 30
Last Checked: Aug 31 at 3:18PM
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 Keystone Commercial Real Estate
Investment Insights
Based on property information with market context.
This freestanding restaurant building contains 2,127 square feet and was constructed in 1988. Formerly operated as a Burger King, the property includes drive-thru infrastructure, dine-in capability, and on-site parking. B4 zoning supports its stated retail and street retail positioning.
The property occupies the corner of Livernois Ave and Grand River Ave in Detroit, Michigan, with convenient access just off I-96. Its existing restaurant-oriented configuration combines a standalone building, vehicle-oriented service, and parking in one commercial asset.
The property occupies the corner of Livernois Ave and Grand River Ave in Detroit, Michigan, with convenient access just off I-96. Its existing restaurant-oriented configuration combines a standalone building, vehicle-oriented service, and parking in one commercial asset.
Key Highlights
- 2,127‑square‑foot freestanding restaurant building
- Built in 1988
- Existing drive‑thru and dine‑in configuration
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
$28,069
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
2.95%
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%
$561,380
$561.4K
Cap Rate 7%
$400,986
$401.0K
Cap Rate 9%
$311,878
$311.9K
Market Conditions
NOI Build-Up for 2,127 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
$39.6K $18.60/SF
− Vacancy
−$2.1K −$1.00/SF
EGI
$37.4K $17.60/SF
− OpEx
−$9.4K −$4.40/SF
NOI
$28.1K $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%
$561,380
Cap Rate 7%
$400,986
Cap Rate 9%
$311,878
Alternative Uses
Best Use
Specialty Retail
$401.0K
$350.9K – $467.8K
NOI $28,069 @ 7.0% cap · market cap 2.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$469.2K
$410.6K – $547.4K
NOI $32,846 @ 7.0% cap · market cap 3.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
337
Businesses Nearby
61k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 78%
Shops & Services 22%
McDonald's
Dining
27,407 visits/mo
0.1 miles
Wendy's
Dining
14,200 visits/mo
0.1 miles
BP
Shops & Services
7,019 visits/mo
0.1 miles
KFC
Dining
6,262 visits/mo
0.1 miles
BP
Shops & Services
3,909 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Drive through restaurant - Freestanding B4-zoned restaurant property with drive-thru service, dine-in capacity, and on-site parking.
Where is this drive through restaurant located?
The property is located at 9871 Livernois Ave Detroit, MI.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 2,127‑square‑foot freestanding restaurant building; Built in 1988; Existing drive‑thru and dine‑in configuration
