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    Property profile & analytics

    1040 9th Mile Rd Ferndale, MI 48220-1269

    • Grocery and convenience stores
    • 2,400 SF
    • 0.38 lot acres
    OFF-MARKET
    Last Sale
    Sep 29, 2020
    $605,000
    Value Estimations
    $585,000
    Show details
    Cap Rate Potential
    3.5%
    Grocery and convenience stores
    Location Intelligence
    Property ID
    US43-1020337
    The Realmo ID is a unique identifier assigned to every property, incorporating country codes and precise geo-coordinates for 300x300-foot land blocks. It enables standardized data collection and seamless integration of disparate sources such as ownership, tax, title data and physical specifications. By aggregating current and historical records, the Realmo ID powers advanced analytics and delivers deep, verifiable insights for real estate professionals.

    Current Use by Public Records

    • Grocery and convenience stores

    Property Details for 1040 9th Mile Rd

    Year built
    1978
    Lot size
    0.38 lot acres
    Property size
    2,400 SF
    Zone code
    BI
    Property type
    Grocery and convenience stores
    APN
    24-25-28-479-004
    APU
    242528479004

    Description

    This exceptional investment opportunity presents a 2,580 square foot 7-Eleven convenience store located at 1040 W Nine Mile Rd, Ferndale, MI 48220. The property sits on a 0.37-acre lot in a high-traffic area, exceeding 36,000 cars daily at a signalized intersection. Boasting a strong location in downtown Ferndale, this Class B retail property benefits from a population exceeding 360,000 within a 5-mile radius. The current absolute NNN lease, with a corporate guarantee from 7-Eleven (A-rated credit), has a remaining term of 4.4 years, commencing April 1, 2024, and expiring March 31, 2029, with two 5-year renewal options. Rent increases are substantial, with a base 21% increase at each renewal plus CPI adjustments from 2019. The current NOI is $43,339, with a pro-forma NOI of $63,481, and a pro-forma cap rate of 6.05%. Built in 1978, the property is zoned C-2 Commercial and enjoys 100% occupancy. The asking price is $1,050,000, translating to $406.98 per square foot. This presents a compelling investment with significant upside potential due to substantial rent increases at renewal and a low rent-to-sales ratio. Ferndale's vibrant downtown, proximity to major roadways (Woodward Avenue and I-75), and its location within the Detroit metropolitan area further enhance this property's value and appeal.

    Value Estimations

    based on Realmo’s proprietary methodology

    • AI approach

      Method
      Estimation
      Statistic approach
      $745,000

    • CAP approach

      CAP Return
      Estimation
      6%
      $430,000
      6.5%
      $395,000
      7%
      $370,000

    • Comparable approach

      Method
      Estimation
      Statistic Estimate
      $567,000
      Market price range: $246k - $567k
      AI Estimate
      $567,000
      Market price range: $246k - $567k

    • Alternative Use

      Use
      Estimation
      RETAIL STORES
      $425,000
      Current use
      COMMERCIAL (GENERAL)
      $425,000
      Change: -0% Conversion: Easy
      MEDICAL BUILDING
      $380,000
      Change: -11% Conversion: Difficult

    Get a detailed, property-specific valuation — fast and free

    Location Insight

    • Map
    • Local Demand
    City
    Ferndale
    County
    Oakland
    State
    Michigan
    Longitude
    -83.1475
    Latitude
    42.4606
    CBSA code
    19820
    CBSA name
    DETROIT-WARREN-LIVONIA, MI METROPOLITAN STATISTICAL AREA

    Property Tax & Assessments

    Tax date
    Tax Amount
    Assessed Land Value
    Assessed Improvement Value
    Total Assessed Value
    Applied Tax Rate
    Land Market Value
    Improvement Market Value
    Total Market Value
    2023
    $14,909
    $0.00
    $0.00
    $276,800
    -
    $0.00
    $0.00
    $553,600

    Comparable in this City

    • Value Estimation by Request
      1,676 SF

      22500 Woodward Ave

      GROCERY, SUPERMARKET • 1,676 SF
      22500 Woodward Ave, Ferndale, MI 48220-1841
      View Details
    • Value Estimation
      $585,000
      2,480 SF

      1358 9th Mile Rd

      GROCERY, SUPERMARKET • 2,480 SF
      1358 9th Mile Rd, Ferndale, MI 48220-1223
      View Details
    • Value Estimation
      $1,540,000
      5,393 SF

      561 8th Mile Rd

      GROCERY, SUPERMARKET • 5,393 SF
      561 8th Mile Rd, Ferndale, MI 48220-2653
      View Details
    • Value Estimation by Request
      1,990 SF

      504 Livernois St

      GROCERY, SUPERMARKET • 1,990 SF
      504 Livernois St, Ferndale, MI 48220-2304
      View Details
    • Value Estimation
      $610,000
      5,952 SF

      20721 Wyoming St

      GROCERY, SUPERMARKET • 5,952 SF
      20721 Wyoming St, Ferndale, MI 48220-4299
      View Details
    • Value Estimation
      $775,000
      5,044 SF

      510 Woodward Hts, Unit 504

      GROCERY, SUPERMARKET • 5,044 SF
      510 Woodward Hts, Ferndale, MI 48220-1432
      View Details

    Similar Nearby for Sale

    • $295,000
      1,710 SF

      Renovated Office/Retail Space in Ferndale

      Recently renovated office/retail space with dedicated parking and highway access.
      1915 E 9 Mile Rd, Ferndale, MI 48220
      View Details
    • $925,000
      3,186 SF

      Mixed-Use Property in Ferndale, MI

      Multi-unit property with mixed-use zoning in a spirited neighborhood.
      695 Livernois St, Ferndale, MI 48220
      View Details
    • $1,100,000
      7,000 SF

      Ferndale Retail Investment Opportunity

      Woodward Ave Retail Space - High Traffic
      22061 Woodward Ave, Ferndale, MI 48220
      View Details
    • $1,890,000
      11,028 SF

      Prime Ferndale Mixed-Use Property

      11,028 SF Restaurant/Bar/Office - $1.89M
      345 Nine Mile Rd, Ferndale, MI 48220
      View Details
    • $729,000
      0.36 Acres

      Ferndale Multifamily Development Land

      19-Unit Apartment Site, Retail Space
      1120 Nine Mile Rd, Ferndale, MI 48220
      View Details
    • $85,000

      Vacant Lot in Hazel Park

      60 x 90 foot vacant lot in Hazel Park.
      23000 S Chrysler Dr, Hazel Park, MI 48220
      View Details

    Similar Nearby for Lease

    • $14 SF/Yr
      1,850 SF

      Retail Space in Shopping Center

      Retail space available within a neighborhood shopping center.
      14301-14311 Livernois St, Detroit, MI 48220
      View Details
    • $28 SF/Yr
      1,354 SF

      Turnkey Bakery Space on Woodward

      Bakery space for sublease with equipment included and ample parking.
      23123-23141 Woodward Ave, Ferndale, MI 48220
      View Details
    • $3,700 /Mo

      Downtown Ferndale Retail/Office Space

      Prime location in downtown Ferndale, ideal for retail or office.
      23059 Woodward Ave, Ferndale, MI 48220
      View Details
    • $16 SF/Yr
      52,703 SF

      Royal Town Center Retail Space

      Prime Royal Oak Retail Opportunity.
      8888 8 Mile Rd, Ferndale, MI 48220
      View Details
    • Contact for pricing

      Ferndale Commercial Property For Rent

      Commercial property available for rent in Ferndale, Michigan.
      368-374 Hilton Rd, Ferndale, MI 48220
      View Details
    • $14 SF/Yr
      26,645 SF

      Ferndale Center Retail Space Available

      Prime Ferndale retail space, multiple units.
      22304 Woodward Ave, Ferndale, MI 48220
      View Details
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    1040 9th Mile Rd
    Ferndale, MI 48220-1269
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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