Turnkey 45-Seat
For Sale
$200,000
106 E Cloverland Drive, Ironwood, MI 49938
COM/IND/BUS OPP, Ironwood, MI
Property Size1,406 SF
Lot Size0.41 Acres
Price / SF$142.25
Days on Market1965
Property Features for 106 E Cloverland Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Ironwood (27006)
Standard status
Active
Size
1,406 SF
Lot size
0.41 Acres
Utilities
Heating system
Hot Water(Heating)
Cooling system
Wall/Window Unit(s), Ceiling Fan(s), Exhaust Fan (Cooling)
Water source
Public
Building Details
Year built
1950
Listing Agency:
NORTHERN TRAILS REALTY
(906) 932-4110
Listed By:
DEAN LANTTA · License #50339094
(906) 364-1582
Added: Apr 7, 2021
Changed: Aug 19
Last Checked: Aug 23 at 6:06AM
MLS# 10070623
Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Turnkey conventional restaurant featuring seating for 45 and included equipment and furnishings. The property offers 1,406 square feet and sits on a 0.41-acre lot. Built in 1950, it has hot water heating and cooling with ceiling fans, an exhaust fan, and wall/window unit(s). Public water is available.
The restaurant is located at 106 E Cloverland Drive in Ironwood, Michigan on US 2, with plenty of on-site parking. Many updates have been completed over time, and the current owner is willing to assist a new owner during the transition.
The restaurant is located at 106 E Cloverland Drive in Ironwood, Michigan on US 2, with plenty of on-site parking. Many updates have been completed over time, and the current owner is willing to assist a new owner during the transition.
Key Highlights
- 45‑seat turnkey restaurant with equipment and furnishings included
- 1,406 square feet on a 0.41‑acre lot
- Located on US 2 at 106 E Cloverland Drive in Ironwood
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
$15,638
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
7.82%
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%
$312,760
$312.8K
Cap Rate 7%
$223,400
$223.4K
Cap Rate 9%
$173,756
$173.8K
Market Conditions
NOI Build-Up for 1,406 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
$21.8K $15.48/SF
− Vacancy
−$914 −$0.65/SF
EGI
$20.9K $14.83/SF
− OpEx
−$5.2K −$3.71/SF
NOI
$15.6K $11.12/SF
Area
Gogebic County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$312,760
Cap Rate 7%
$223,400
Cap Rate 9%
$173,756
Alternative Uses
Best Use
Specialty Retail
$223.4K
$195.5K – $260.6K
NOI $15,638 @ 7.0% cap · market cap 7.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$298.6K
$261.3K – $348.4K
NOI $20,902 @ 7.0% cap · market cap 10.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
318
Businesses Nearby
53k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 65%
Dining 33%
Hotels & Casinos 3%
Kwik Trip
Shops & Services
27,624 visits/mo
0.2 miles
McDonald's
Dining
17,177 visits/mo
0.3 miles
Family Dollar
Shops & Services
3,326 visits/mo
0.1 miles
O'Reilly Auto Parts
Shops & Services
3,248 visits/mo
0.3 miles
Quality Inn
Hotels & Casinos
1,123 visits/mo
0.2 miles
Demographics for 49938, MI
7,340
Population
4,728
Households
1.6
Avg Household Size
49
Median Age
23%
College-Educated
95%
High-School Grad
225.6 sq mi
ZIP Area
33
Density / Sq Mi
$44,379
Median Household Income
$34,553
Median Earnings
$590
Median Rent
$95,500
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?
Conventional restaurant - Turnkey restaurant on US 2 with 45 seats, public water, and included equipment and furnishings.
Where is this conventional restaurant located?
The property is located at 106 E Cloverland Drive Ironwood, MI.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: 45‑seat turnkey restaurant with equipment and furnishings included; 1,406 square feet on a 0.41‑acre lot; Located on US 2 at 106 E Cloverland Drive in Ironwood
