Drive-Through Restaurant with Patio
For Sale
$395,000
Pending
517 Butternut Drive, Holland, MI 49424
Commercial Sale, Holland, MI
Property Size1,002 SF
Lot Size0.58 Acres
Days on Market190
Property Features for 517 Butternut Drive
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
C-2
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking
10
Interior features
Broadband
Elementary school district
West Ottawa
Middle school district
West Ottawa
High school district
West Ottawa
Directions
Butternut Drive just north of James street, next to the Leisure Estates community entrance.
Standard status
Pending
APN
70-16-18-400-079
Size
1,002 SF
Lot size
0.58 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
See Documents
Tax Annual Amount
4416
Legal Description
See Documents
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air, Window Unit(s)
Building Details
Year built
1984
Number of units
1
Building materials
Wood Siding
Roof type
Rubber
Listing Agency:
Keller Williams Lakeshore · Keller Williams Realty
(616) 546-2500
Listed By:
Nicholas Schweihofer
(616) 566-4619
Added: Feb 11
Changed: Aug 19
Last Checked: Aug 20 at 6:06PM
MLS# 26004937
Copyright © 2026 Michigan Regional Information Center, LLC. 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 clean, well-maintained small restaurant property is offered as a turnkey asset sale, including the real estate and equipment. The layout is designed to support carryout and drive-thru service, with cozy indoor seating for 12 and seasonal outdoor patio seating.
The property is located on the Northside of Holland in a high-visibility, high-traffic area. It is positioned on a 0.58-acre lot with a 1,002-square-foot building.
The current operation is an authentic Mexican taco restaurant, and the efficient footprint can accommodate a range of restaurant and counter-service concepts, including carryout-focused uses.
The property is located on the Northside of Holland in a high-visibility, high-traffic area. It is positioned on a 0.58-acre lot with a 1,002-square-foot building.
The current operation is an authentic Mexican taco restaurant, and the efficient footprint can accommodate a range of restaurant and counter-service concepts, including carryout-focused uses.
Key Highlights
- High‑visibility, high‑traffic location on Holland's Northside.
- Turnkey asset sale includes real estate and equipment.
- Ideal layout for carryout and drive‑thru service.
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
$11,145
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
2.82%
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%
$222,900
$222.9K
Cap Rate 7%
$159,214
$159.2K
Cap Rate 9%
$123,833
$123.8K
Market Conditions
NOI Build-Up for 1,002 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
$15.5K $15.48/SF
− Vacancy
−$651 −$0.65/SF
EGI
$14.9K $14.83/SF
− OpEx
−$3.7K −$3.71/SF
NOI
$11.1K $11.12/SF
Area
Ottawa 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%
$222,900
Cap Rate 7%
$159,214
Cap Rate 9%
$123,833
Alternative Uses
Best Use
Specialty Retail
$159.2K
$139.3K – $185.8K
NOI $11,145 @ 7.0% cap · market cap 2.82%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$12.46M
$10.90M – $14.54M
NOI $872,210 @ 7.0% cap · market cap 220.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
393
Businesses Nearby
Explore this area
Business Placement
Demographics for 49424, MI
47,963
Population
19,906
Households
2.4
Avg Household Size
38
Median Age
34%
College-Educated
89%
High-School Grad
57.3 sq mi
ZIP Area
837
Density / Sq Mi
$82,353
Median Household Income
$41,316
Median Earnings
$1,157
Median Rent
$270,000
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?
Drive through restaurant - Turnkey restaurant for sale with drive-thru service, indoor seating for 12, and seasonal outdoor patio options.
Where is this drive through restaurant located?
The property is located at 517 Butternut Drive Holland, MI.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: High‑visibility, high‑traffic location on Holland's Northside.; Turnkey asset sale includes real estate and equipment.; Ideal layout for carryout and drive‑thru service.
