Restaurant with Upstairs Living
For Sale
$647,500
7515 S US 31 Highway, Alanson, MI 49706
Commercial/Industrial, Alanson, MI
Property Size5,317 SF
Price / SF$121.78
Days on Market72
Property Features for 7515 S US 31 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-1
Elementary school district
Littlefield
Middle school district
Littlefield
High school district
Littlefield
Directions
ON US 31 in downtown Alanson. North of River Street on East side of US 31.
Subdivision
Littlefield
Standard status
Active
APN
41-17-10-301-014,012,015
Size
5,317 SF
Taxes and HOA fees
Tax Description
As per county record- VILLAGE OF ALANSON, BLK 7, LOT 4. SECTION 10, T35N, R4W.
Legal Description
As per county record- VILLAGE OF ALANSON, BLK 7, LOT 4. SECTION 10, T35N, R4W.
Utilities
Utilities
Cable Available
Heating system
Natural Gas, Forced Air, Baseboard, Hot Water(Heating)
Water source
Well
Building Details
Building materials
Wood Frame
Listing Agency:
Coldwell Banker Fairbairn Realty · Coldwell Banker Real Estate
(231) 548-9336
Listed By:
Craig Wilson
(231) 459-5762
Added: Jul 11
Changed: Sep 14
Last Checked: Sep 20 at 1:06PM
MLS# 479532
Copyright © 2026 Northern Michigan MLS. 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 5,317-square-foot restaurant property combines customer-facing dining space with several supporting components. The layout includes a bar, dining room, separate room for private gatherings, upstairs living quarters, and basement storage. Kitchen equipment and inventory are included, while recent improvements include a newer furnace, air conditioning serving the kitchen, electrical system work, and updated kitchen equipment.
Positioned along S US 31 Highway in Alanson, the property records average traffic of 15,300 vehicles per day. The site is zoned B-1 and includes two additional lots that may support outdoor seating or additional parking. A Resort Liquor License is included, and the building uses a well water source and natural-gas heating.
Positioned along S US 31 Highway in Alanson, the property records average traffic of 15,300 vehicles per day. The site is zoned B-1 and includes two additional lots that may support outdoor seating or additional parking. A Resort Liquor License is included, and the building uses a well water source and natural-gas heating.
Key Highlights
- 5,317 SF restaurant property on S US 31 Highway in Alanson
- Average daily traffic of 15,300 vehicles
- Bar, dining room, private gathering room, upstairs living quarters, and basement storage
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
$44,982
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
6.95%
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%
$899,640
$899.6K
Cap Rate 7%
$642,600
$642.6K
Cap Rate 9%
$499,800
$499.8K
Market Conditions
NOI Build-Up for 5,317 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
$63.8K $12.00/SF
− Vacancy
−$3.8K −$0.72/SF
EGI
$60.0K $11.28/SF
− OpEx
−$15.0K −$2.82/SF
NOI
$45.0K $8.46/SF
Area
Emmet County, MI
Vacancy
6.00%
Lease Rate
$12.00 /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%
$899,640
Cap Rate 7%
$642,600
Cap Rate 9%
$499,800
Alternative Uses
Best Use
Specialty Retail
$642.6K
$562.3K – $749.7K
NOI $44,982 @ 7.0% cap · market cap 6.95%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.20M
$1.05M – $1.40M
NOI $84,230 @ 7.0% cap · market cap 13.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
15,300 VPD
Traffic count
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49706, MI
5,062
Population
2,893
Households
1.7
Avg Household Size
42
Median Age
22%
College-Educated
92%
High-School Grad
58.5 sq mi
ZIP Area
87
Density / Sq Mi
$63,573
Median Household Income
$37,105
Median Earnings
$943
Median Rent
$208,500
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 - Restaurant property includes a bar, dining room, event room, and upstairs living quarters.
Where is this conventional restaurant located?
The property is located at 7515 S US 31 Highway Alanson, MI.
What is the asking price?
The asking price for this property is $647,500.
What are key features of this property?
This property features: 5,317 SF restaurant property on S US 31 Highway in Alanson; Average daily traffic of 15,300 vehicles; Bar, dining room, private gathering room, upstairs living quarters, and basement storage
