Building Details

Year built 1890

Roof type Asphalt

Listing Agency: GROVER REAL ESTATE Show Phone

Listed By: SARA ANDERSON · License #6501221905 Show Phone

Added: Apr 22 Changed: Aug 4 Last Checked: Aug 21 at 2:06AM

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MLS# 50205060

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.

The iconic Swallow Inn at 10468 S Main Street is being offered for sale as an established hospitality property. The building includes a full bar, dining area, kitchen, and public bathrooms. The offering also includes tables, stools, and chairs, with the exception of liquor, and the current owner is available to help with the transition.

The property currently holds a Class C Liquor license and a Michigan Lottery Retailer license. Upstairs, there are apartments that could be remodeled for on-site living or additional income.

The property is situated on approximately 0.26 acres and contains about 3,938 square feet. A land contract is available to qualified buyers.

Key Highlights

• Established Business with Over 100 Years of Operation: An iconic business in the heart of Rapid River.
• Turn‑Key Operation: Includes a full bar, dining area, kitchen, public bathrooms, stock, tables, and chairs (excluding liquor).
• Favorable Reputation: Known for "Best Fish Fry in the U.P." and a one‑of‑a‑kind salad bar.

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

$15,151

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

5.05%

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%

$303,020 $303.0K

Cap Rate 7%

$216,443 $216.4K

Cap Rate 9%

$168,344 $168.3K

Market Conditions

NOI Build-Up for 3,938 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

$70.9K $18.00/SF

− Vacancy

−$39.0K −$9.90/SF

EGI

$31.9K $8.10/SF

− OpEx

−$16.7K −$4.25/SF

NOI

$15.2K $3.85/SF

Area

Delta County, MI

Vacancy

55.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

52.50%

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%

$303,020

Cap Rate 7%

$216,443

Cap Rate 9%

$168,344

Alternative Uses

Best Use

Specialty Retail

$739.7K

$647.3K – $863.0K (±1% cap)

NOI $51,781 @ 7.0% cap · market cap 17.27%

Second Best

Hotel Hospitality

$216.4K

$189.4K – $252.5K (±1% cap)

NOI $15,151 @ 7.0% cap · market cap 5.05%

Theoretical Best

Office A

$770.9K

$674.5K – $899.4K (±1% cap)

NOI $53,963 @ 7.0% cap · market cap 17.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Swallow Inn Bar & Pub

Lease Details

Turnkey business

Opportunity

Yes

Liquor license

Location Intelligence

Trade Area within ½ mile

67

Businesses Nearby

4k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

4,271 visits/mo 0.5 miles

Demographics for 49878, MI

3,566

Population

2,524

Households

1.4

Avg Household Size

54

Median Age

22%

College-Educated

94%

High-School Grad

455.6 sq mi

ZIP Area

8

Density / Sq Mi

$63,750

Median Household Income

$38,919

Median Earnings

$875

Median Rent

$165,200

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Hotel - Historic inn for sale featuring a full bar, dining area, kitchen, public bathrooms, and upstairs apartments in Rapid River.

Where is this hotel located?

The property is located at 10468 S Main Street Rapid River, MI.

What is the asking price?

The asking price for this property is $299,900.

What are key features of this property?

This property features: Established Business with Over 100 Years of Operation: An iconic business in the heart of Rapid River.; Turn‑Key Operation: Includes a full bar, dining area, kitchen, public bathrooms, stock, tables, and chairs (excluding liquor).; Favorable Reputation: Known for "Best Fish Fry in the U.P." and a one‑of‑a‑kind salad bar.