Updated Restaurant Building with
For Sale
$270,000
108 W Colby Street, Whitehall, MI 49461
Updated restaurant building with a professionally updated commercial kitchen, ADA restroom, and rear storage area.
Property Size1,288 SF
Price / SF$209.63
Days on Market21
Property Features for 108 W Colby Street
General Information
Standard status
Active
Size
1,288 SF
Property subtype
Industrial
Additional Details
Road Access
Yes
Amenities
3
2788
Building Details
Year Built
1928
Listing Agency:
(231) 730-0934
Listed By:
Five Star Real Estate Whitehall
(231) 730-0934
Source:
Xome
Added: Jul 21
Changed: Aug 8
Last Checked: Aug 9 at 4:58AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Five Star Real Estate Whitehall
Investment Insights
Based on property information with market context.
This updated commercial building is configured for restaurant use and features newer flooring, fresh paint, and modern fixtures. The interior includes an ADA-compliant restroom, a professionally updated commercial kitchen with a three-compartment sink, and a spacious rear storage area to support day-to-day operations.
The property is located on Whitehall’s highly visible main street, with ample parking available along Colby Street and in a large public parking lot behind the building. A backyard area provides space that could be used to create an outdoor dining or patio setup. The sale is for the real estate only and does not include the business, inventory, or equipment.
The property is located on Whitehall’s highly visible main street, with ample parking available along Colby Street and in a large public parking lot behind the building. A backyard area provides space that could be used to create an outdoor dining or patio setup. The sale is for the real estate only and does not include the business, inventory, or equipment.
Key Highlights
- Updated commercial building built in 1928 on Whitehall’s main street
- Professionally updated commercial kitchen with a three‑compartment sink
- ADA‑compliant restroom
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
$14,326
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
5.31%
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%
$286,520
$286.5K
Cap Rate 7%
$204,657
$204.7K
Cap Rate 9%
$159,178
$159.2K
Market Conditions
NOI Build-Up for 1,288 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
$19.9K $15.48/SF
− Vacancy
−$837 −$0.65/SF
EGI
$19.1K $14.83/SF
− OpEx
−$4.8K −$3.71/SF
NOI
$14.3K $11.12/SF
Area
Muskegon 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%
$286,520
Cap Rate 7%
$204,657
Cap Rate 9%
$159,178
Alternative Uses
Best Use
Specialty Retail
$204.7K
$179.1K – $238.8K
NOI $14,326 @ 7.0% cap · market cap 5.31%
Second Best
Industrial
$176.5K
$154.4K – $205.9K
NOI $12,355 @ 7.0% cap · market cap 4.58%
Theoretical Best
Hotel Hospitality
$12.10M
$10.58M – $14.11M
NOI $846,696 @ 7.0% cap · market cap 313.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
405
Businesses Nearby
17k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 76%
Dining 24%
Wesco
Shops & Services
8,826 visits/mo
0.2 miles
SUBWAY
Dining
4,105 visits/mo
0.1 miles
PNC Bank
Shops & Services
3,380 visits/mo
0.1 miles
Napa Auto Parts
Shops & Services
922 visits/mo
0.1 miles
Demographics for 49461, MI
9,295
Population
4,220
Households
2.2
Avg Household Size
47
Median Age
30%
College-Educated
97%
High-School Grad
43.2 sq mi
ZIP Area
215
Density / Sq Mi
$80,495
Median Household Income
$42,249
Median Earnings
$874
Median Rent
$245,600
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?
Commercial kitchen - Updated restaurant building with a professionally updated commercial kitchen, ADA restroom, and rear storage area.
Where is this commercial kitchen located?
The property is located at 108 W Colby Street Whitehall, MI.
What is the asking price?
The asking price for this property is $270,000.
What are key features of this property?
This property features: Updated commercial building built in 1928 on Whitehall’s main street; Professionally updated commercial kitchen with a three‑compartment sink; ADA‑compliant restroom
