Bakery Storefront
For Sale
$2,450,000
1115 E Eighth, Traverse City, MI 49686
Operating European-style bakery business with established management and a founder-independent daily structure.
Property Size6,000 SF
Days on Market45
Property Features for 1115 E Eighth
General Information
Standard status
Active
Size
6,000 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Building Details
Building Size
6,000 SF
Year Built
2017
Listing Agency:
Coldwell Banker Schmidt Traverse City
(231) 492-5898
Listed By:
Scott C Hardy · License #6501306294
(231) 492-5898
Source:
Homesforsaleinmich
Added: Jul 8
Changed: Aug 21
Last Checked: Aug 21 at 2:21AM
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 Coldwell Banker Schmidt Traverse City
Investment Insights
Based on property information with market context.
This storefront property at 1115 E Eighth in Traverse City, Michigan, is associated with an operating European-style bakery business. The business has an eight-person management team and is currently structured so the founder is not involved in daily operations. The offering also includes established brand assets and protected intellectual property.
Built in 2017, the property combines a retail storefront setting with an operating bakery concept. The sellers are preparing for retirement and have indicated that they will assist with the transition.
Built in 2017, the property combines a retail storefront setting with an operating bakery concept. The sellers are preparing for retirement and have indicated that they will assist with the transition.
Key Highlights
- European‑style bakery business operating from the storefront property
- Eight‑person management team in place
- Founder is not involved in daily operations
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
$74,189
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
3.03%
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%
$1,483,780
$1.5M
Cap Rate 7%
$1,059,843
$1.1M
Cap Rate 9%
$824,322
$824.3K
Market Conditions
NOI Build-Up for 6,000 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
$115.2K $19.20/SF
− Vacancy
−$9.2K −$1.54/SF
EGI
$106.0K $17.66/SF
− OpEx
−$31.8K −$5.30/SF
NOI
$74.2K $12.36/SF
Area
Grand Traverse County, MI
Vacancy
8.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
30.00%
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%
$1,483,780
Cap Rate 7%
$1,059,843
Cap Rate 9%
$824,322
Alternative Uses
Best Use
Retail
$1.06M
$927.4K – $1.24M
NOI $74,189 @ 7.0% cap · market cap 3.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.30M
$1.14M – $1.52M
NOI $91,238 @ 7.0% cap · market cap 3.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
943
Businesses Nearby
63k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 52%
Shops & Services 25%
Groceries 23%
Starbucks
Dining
15,610 visits/mo
0.4 miles
Family Fare
Groceries
14,551 visits/mo
0.2 miles
Little Caesars Pizza
Dining
9,060 visits/mo
0.5 miles
The UPS Store
Shops & Services
8,527 visits/mo
0.4 miles
Jimmy John's
Dining
7,341 visits/mo
0.5 miles
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
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?
Storefront property - Operating European-style bakery business with established management and a founder-independent daily structure.
Where is this storefront property located?
The property is located at 1115 E Eighth Traverse City, MI.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: European‑style bakery business operating from the storefront property; Eight‑person management team in place; Founder is not involved in daily operations
