Restaurant Building with Highway
For Sale
$329,500
1605 N Stephenson Avenue, Iron Mountain, MI 49801
COM/IND/BUS OPP, Iron Mountain, MI
Property Size3,288 SF
Lot Size0.48 Acres
Price / SF$100.21
Days on Market174
Property Features for 1605 N Stephenson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Iron Mountain (22007)
Standard status
Active
Size
3,288 SF
Lot size
0.48 Acres
Utilities
Heating system
Forced Air
Cooling system
Central Air, Ceiling Fan(s)
Water source
Public
Amenities
fireplace
Building Details
Year built
1973
Listing Agency:
HARRIS STATE WIDE
(906) 828-1099
Listed By:
HUGH HARRIS · License #UPAR
(906) 282-7348
Added: Mar 26
Changed: Sep 13
Last Checked: Sep 15 at 2:06PM
MLS# 50202563
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 3,288-square-foot restaurant building, constructed in 1973, offers a flexible commercial layout with restaurant, professional office, or retail potential. Recent improvements include new plumbing and wiring, while three large handicap-accessible bathrooms, a fireplace, forced-air heating, central air, and ceiling fans add functional infrastructure. Public water serves the property, and ample parking is available.
The 0.48-acre site provides immediate highway access at the US-2 corner and is positioned near Lake Antoine, hotels and motels, and an extensive trail system. Its Iron Mountain setting supports a range of commercial repositioning or owner-user concepts without losing the building’s existing restaurant orientation.
The 0.48-acre site provides immediate highway access at the US-2 corner and is positioned near Lake Antoine, hotels and motels, and an extensive trail system. Its Iron Mountain setting supports a range of commercial repositioning or owner-user concepts without losing the building’s existing restaurant orientation.
Key Highlights
- 3,288‑square‑foot building on a 0.48‑acre site
- Restaurant‑oriented property with professional office and retail use potential
- New plumbing and wiring
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
$29,663
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
9.00%
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%
$593,260
$593.3K
Cap Rate 7%
$423,757
$423.8K
Cap Rate 9%
$329,589
$329.6K
Market Conditions
NOI Build-Up for 3,288 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
$47.3K $14.40/SF
− Vacancy
−$5.0K −$1.51/SF
EGI
$42.4K $12.89/SF
− OpEx
−$12.7K −$3.87/SF
NOI
$29.7K $9.02/SF
Area
Dickinson County, MI
Vacancy
10.50%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$593,260
Cap Rate 7%
$423,757
Cap Rate 9%
$329,589
Alternative Uses
Best Use
Specialty Retail
$522.4K
$457.1K – $609.5K
NOI $36,570 @ 7.0% cap · market cap 11.10%
Second Best
Retail
$423.8K
$370.8K – $494.4K
NOI $29,663 @ 7.0% cap · market cap 9.00%
Theoretical Best
Office A
$633.9K
$554.7K – $739.6K
NOI $44,374 @ 7.0% cap · market cap 13.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
165
Businesses Nearby
3k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 65%
Shops & Services 35%
Comfort Inn
Hotels & Casinos
1,119 visits/mo
0.2 miles
U-Haul
Shops & Services
833 visits/mo
0.1 miles
Holiday Inn Express & Suites Iron Mountain
Hotels & Casinos
827 visits/mo
0.3 miles
Safelite AutoGlass
Shops & Services
284 visits/mo
0.5 miles
Budget Host
Hotels & Casinos
168 visits/mo
0.1 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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - New plumbing and wiring support restaurant, retail, or professional office use in a flexible commercial setting.
Where is this conventional restaurant located?
The property is located at 1605 N Stephenson Avenue Iron Mountain, MI.
What is the asking price?
The asking price for this property is $329,500.
What are key features of this property?
This property features: 3,288‑square‑foot building on a 0.48‑acre site; Restaurant‑oriented property with professional office and retail use potential; New plumbing and wiring
