Turnkey Diner in Downtown
For Sale
$399,900
111 Michigan Avenue, Augusta, MI 49012
Operating diner with equipment included in downtown Augusta.
Property Size1,900 SF
Price / SF$210.47
Days on Market182
Property Features for 111 Michigan Avenue
General Information
Standard status
Active
Size
1,900 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$3,770
Amenities
3
04-34-360-220
Building Details
Year Built
2002
Listing Agency:
NAI Wisinski of West Michigan
(269) 353-0311
Listed By:
Connor Schultze · License #6501373674
Source:
Xome
Added: Feb 24
Changed: Aug 23
Last Checked: Aug 24 at 4:18AM
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 NAI Wisinski of West Michigan
Investment Insights
Based on property information with market context.
This turnkey diner opportunity is located in downtown Augusta at 111 W Michigan Ave. The well-positioned restaurant offers visibility along Michigan Avenue and is surrounded by local businesses and neighborhood rooftops. The sale includes all furniture, fixtures, and equipment, presenting a chance to step into an operating diner concept. The kitchen is fully equipped with commercial-grade equipment, prep areas, refrigeration, cooking line, and dining room furnishings, allowing a new owner to begin operations with minimal additional investment. This property is ideal for an owner-operator or investor looking to expand their restaurant portfolio in a strong small-town market. Financials are available for qualified buyers upon request and receipt of a signed confidentiality agreement. The bike score is 43, indicating it is somewhat bikeable, and the walk score is 31, indicating car dependence.
Key Highlights
- Turnkey diner opportunity: Fully equipped with all furniture, fixtures, and equipment included.
- Prime downtown location: Excellent visibility on Michigan Avenue, surrounded by businesses and residential areas.
- Fully equipped commercial kitchen: Includes commercial‑grade equipment, prep areas, refrigeration, and a cooking line.
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
$17,826
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
4.46%
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%
$356,520
$356.5K
Cap Rate 7%
$254,657
$254.7K
Cap Rate 9%
$198,067
$198.1K
Market Conditions
NOI Build-Up for 1,900 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
$25.0K $13.14/SF
− Vacancy
−$1.2K −$0.63/SF
EGI
$23.8K $12.51/SF
− OpEx
−$5.9K −$3.13/SF
NOI
$17.8K $9.38/SF
Area
Kalamazoo County, MI
Vacancy
4.80%
Lease Rate
$13.14 /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%
$356,520
Cap Rate 7%
$254,657
Cap Rate 9%
$198,067
Alternative Uses
Best Use
Specialty Retail
$254.7K
$222.8K – $297.1K
NOI $17,826 @ 7.0% cap · market cap 4.46%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$497.2K
$435.0K – $580.1K
NOI $34,803 @ 7.0% cap · market cap 8.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
90
Businesses Nearby
15k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Shell
Shops & Services
9,772 visits/mo
0.1 miles
Dollar General
Shops & Services
4,999 visits/mo
0.3 miles
Demographics for 49012, MI
3,477
Population
1,344
Households
2.6
Avg Household Size
46
Median Age
32%
College-Educated
96%
High-School Grad
42.2 sq mi
ZIP Area
82
Density / Sq Mi
$78,365
Median Household Income
$41,026
Median Earnings
$845
Median Rent
$248,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Operating diner with equipment included in downtown Augusta.
Where is this breakfast & diner located?
The property is located at 111 Michigan Avenue Augusta, MI.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: Turnkey diner opportunity: Fully equipped with all furniture, fixtures, and equipment included.; Prime downtown location: Excellent visibility on Michigan Avenue, surrounded by businesses and residential areas.; Fully equipped commercial kitchen: Includes commercial‑grade equipment, prep areas, refrigeration, and a cooking line.
