Old Town Diner with
For Sale
$399,000
Pending
516 E Grand River Avenue, Lansing, MI 48906
Commercial Sale, Lansing, MI
Property Size1,587 SF
Lot Size0.20 Acres
Days on Market2238
Property Features for 516 E Grand River Avenue
General Information
Property type
Commercial Sale
Property subtype
Single Family Residence
Zoning description
Zoning
Parking features
Garage
Exterior features
Lighting
Appliances
Cooktop, Dishwasher, Free-Standing Freezer, Gas Water Heater, Microwave, Range Hood, Refrigerator, Water Heater, Freezer
Lot features
Cleared, Gentle Sloping
Elementary school district
Lansing
Middle school district
Lansing
High school district
Lansing
Directions
Cedar to E Grand River Ave to Old Town Diner.
Standard status
Pending
APN
33-01-01-09-427-061 & 33-01-01-09-427-071
Size
1,587 SF
Lot size
0.20 Acres
Taxes and HOA fees
Tax Year
2020
Tax Description
LOT 3 BLOCK 15 ORIG PLAT
Tax Annual Amount
3535
Legal Description
LOT 3 BLOCK 15 ORIG PLAT
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Cooling system
Window Unit(s), Ceiling Fan(s), Central Air
Water source
Public
Building Details
Year built
1928
Floors in Building
1
Flooring type
Laminate, Tile - Ceramic
Building materials
Concrete
Roof type
Metal
Architectural style
Ranch
Additional Structures
Storage
Listing Agency:
Property Finders Realty · Weichert
(844) 224-7653
Listed By:
Jennifer L Saxton · License #20336
(517) 819-4148
Added: Aug 12, 2020
Changed: Sep 14
Last Checked: Sep 27 at 3:06PM
MLS# 248657
Copyright © 2026 Greater Lansing 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.
Old Town Diner is a 1,587-square-foot restaurant property on a 0.2-acre parcel at 516 E Grand River Avenue in Lansing. The building was constructed in 1928 and remodeled in 2007, with a ranch-style layout, laminate and ceramic tile flooring, concrete construction, and a metal roof. The interior includes a kitchen supported by a cooktop, range hood, dishwasher, microwave, refrigerator, freezer, and gas water heater, along with dining space.
Parking is available at the front and rear of the property, with a 3-car garage positioned behind the building. The property is served by public water and public sewer. Heating is provided by natural gas forced air, while cooling includes central air, window units, and ceiling fans.
Parking is available at the front and rear of the property, with a 3-car garage positioned behind the building. The property is served by public water and public sewer. Heating is provided by natural gas forced air, while cooling includes central air, window units, and ceiling fans.
Key Highlights
- 1,587‑square‑foot restaurant on a 0.2‑acre parcel
- Remodeled in 2007; originally constructed in 1928
- Commercial kitchen with cooktop, range hood, dishwasher, refrigeration, and freezer equipment
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
$16,968
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
4.25%
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%
$339,360
$339.4K
Cap Rate 7%
$242,400
$242.4K
Cap Rate 9%
$188,533
$188.5K
Market Conditions
NOI Build-Up for 1,587 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
$25.7K $16.20/SF
− Vacancy
−$3.1K −$1.94/SF
EGI
$22.6K $14.26/SF
− OpEx
−$5.7K −$3.56/SF
NOI
$17.0K $10.69/SF
Area
Lansing, MI
Vacancy
12.00%
Lease Rate
$16.20 /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%
$339,360
Cap Rate 7%
$242,400
Cap Rate 9%
$188,533
Alternative Uses
Best Use
Specialty Retail
$242.4K
$212.1K – $282.8K
NOI $16,968 @ 7.0% cap · market cap 4.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$326.7K
$285.8K – $381.1K
NOI $22,867 @ 7.0% cap · market cap 5.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
914
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48906, MI
25,674
Population
12,180
Households
2.1
Avg Household Size
37
Median Age
29%
College-Educated
91%
High-School Grad
32.5 sq mi
ZIP Area
790
Density / Sq Mi
$61,533
Median Household Income
$38,551
Median Earnings
$1,033
Median Rent
$128,600
Median Home Value
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Remodeled restaurant property with a commercial kitchen, customer seating, and front and rear parking.
Where is this breakfast & diner located?
The property is located at 516 E Grand River Avenue Lansing, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: 1,587‑square‑foot restaurant on a 0.2‑acre parcel; Remodeled in 2007; originally constructed in 1928; Commercial kitchen with cooktop, range hood, dishwasher, refrigeration, and freezer equipment
