Leased Conventional
For Sale
$495,000
1600 S Stephenson Avenue, Iron Mountain, MI 49801
COM/IND/BUS OPP, Iron Mountain, MI
Property Size2,528 SF
Lot Size0.66 Acres
Price / SF$195.81
Days on Market307
Property Features for 1600 S Stephenson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Commercial
Lot features
Main Street, Cleared
Subdivision
Iron Mountain (22007)
Standard status
Active
Size
2,528 SF
Lot size
0.66 Acres
Utilities
Cooling system
Central Air
Water source
Public
Building Details
Year built
1972
Listing Agency:
HARRIS STATE WIDE
(906) 828-1099
Listed By:
STEVE HARRIS · License #UPAR
(906) 396-3002
Added: Oct 28, 2025
Changed: Aug 20
Last Checked: Aug 30 at 7:06PM
MLS# 50192852
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.
This conventional restaurant property contains 2,528 square feet on a 0.66-acre parcel at 1600 S Stephenson Avenue in Iron Mountain, Michigan. Constructed in 1972, the building includes central air conditioning and is served by public water.
The property is currently leased to a national chain pizza company. Commercial zoning supports its established restaurant use, while the existing tenancy provides an operating context for prospective purchasers evaluating the asset.
The property is currently leased to a national chain pizza company. Commercial zoning supports its established restaurant use, while the existing tenancy provides an operating context for prospective purchasers evaluating the asset.
Key Highlights
- 2,528‑square‑foot restaurant building
- 0.66‑acre site at 1600 S Stephenson Avenue
- Currently leased to a national chain pizza company
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
$28,117
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
5.68%
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%
$562,340
$562.3K
Cap Rate 7%
$401,671
$401.7K
Cap Rate 9%
$312,411
$312.4K
Market Conditions
NOI Build-Up for 2,528 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
$39.1K $15.48/SF
− Vacancy
−$1.6K −$0.65/SF
EGI
$37.5K $14.83/SF
− OpEx
−$9.4K −$3.71/SF
NOI
$28.1K $11.12/SF
Area
Dickinson 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%
$562,340
Cap Rate 7%
$401,671
Cap Rate 9%
$312,411
Alternative Uses
Best Use
Specialty Retail
$401.7K
$351.5K – $468.6K
NOI $28,117 @ 7.0% cap · market cap 5.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$487.4K
$426.5K – $568.6K
NOI $34,117 @ 7.0% cap · market cap 6.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
355
Businesses Nearby
61k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 44%
Shops & Services 35%
Hotels & Casinos 16%
Electronics 3%
Taco Bell
Dining
17,113 visits/mo
0.1 miles
Holiday Station Store
Shops & Services
12,958 visits/mo
0.2 miles
Baymont by Wyndham Iron Mountain
Hotels & Casinos
9,976 visits/mo
0.2 miles
Pet Supplies Plus
Shops & Services
5,564 visits/mo
0.4 miles
Little Caesars Pizza
Dining
3,696 visits/mo
0.4 miles
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
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 - Commercial-zoned restaurant property with an existing lease to a national pizza chain.
Where is this conventional restaurant located?
The property is located at 1600 S Stephenson Avenue Iron Mountain, MI.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: 2,528‑square‑foot restaurant building; 0.66‑acre site at 1600 S Stephenson Avenue; Currently leased to a national chain pizza company
