Turnkey Bar and Restaurant
For Sale
$530,000
1117 LUDINGTON ST, Escanaba, MI 49829
Turnkey bar and restaurant with renovated restrooms, front-to-back layout, and basement storage plus an upstairs apartment.
Property Size2,164 SF
Price / SF$244.92
Days on Market297
Property Features for 1117 LUDINGTON ST
General Information
Standard status
Active
Size
2,164 SF
Property subtype
Industrial
Amenities
3
Building Details
Year Built
1900
Listing Agency:
NORTHERN MICHIGAN LAND BROKERS
(906) 225-5263
Listed By:
ROB SULLIVAN · License #6502362192
(906) 236-5806
Source:
Xome
Added: Nov 17, 2025
Changed: Sep 9
Last Checked: Sep 9 at 6:22AM
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 NORTHERN MICHIGAN LAND BROKERS
Investment Insights
Based on property information with market context.
This turnkey, fully operational bar and restaurant property is designed with a functional front-to-back layout and includes updated, ready-to-run interior space. The building features newer mechanicals and a basement with ample storage. Both restrooms have been fully renovated, and there is also an upstairs apartment that has been gutted.
The front area of the pub provides abundant seating and high-top tables, while the rear section offers additional space suited for larger groups and events. Pool tables are owned; dart boards, a speaker system, and Touch Tunes machines are leased.
The offering is positioned as a downtown destination along a high-visibility commercial corridor, with the property described as an active, well-loved local bar with established operating continuity.
The front area of the pub provides abundant seating and high-top tables, while the rear section offers additional space suited for larger groups and events. Pool tables are owned; dart boards, a speaker system, and Touch Tunes machines are leased.
The offering is positioned as a downtown destination along a high-visibility commercial corridor, with the property described as an active, well-loved local bar with established operating continuity.
Key Highlights
- Over 2,000 sq ft bar/restaurant space with a functional front‑to‑back layout
- Newer mechanicals and renovated restrooms
- Basement provides ample 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
$28,454
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
5.37%
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%
$569,080
$569.1K
Cap Rate 7%
$406,486
$406.5K
Cap Rate 9%
$316,156
$316.2K
Market Conditions
NOI Build-Up for 2,164 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
$39.0K $18.00/SF
− Vacancy
−$1.0K −$0.47/SF
EGI
$37.9K $17.53/SF
− OpEx
−$9.5K −$4.38/SF
NOI
$28.5K $13.15/SF
Area
Delta County, MI
Vacancy
2.60%
Lease Rate
$18.00 /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%
$569,080
Cap Rate 7%
$406,486
Cap Rate 9%
$316,156
Alternative Uses
Best Use
Specialty Retail
$406.5K
$355.7K – $474.2K
NOI $28,454 @ 7.0% cap · market cap 5.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$423.6K
$370.7K – $494.2K
NOI $29,653 @ 7.0% cap · market cap 5.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
640
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49829, MI
17,009
Population
8,729
Households
1.9
Avg Household Size
45
Median Age
19%
College-Educated
90%
High-School Grad
66.8 sq mi
ZIP Area
255
Density / Sq Mi
$45,808
Median Household Income
$31,366
Median Earnings
$667
Median Rent
$139,000
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Bar & Pub - Turnkey bar and restaurant with renovated restrooms, front-to-back layout, and basement storage plus an upstairs apartment.
Where is this bar & pub located?
The property is located at 1117 LUDINGTON ST Escanaba, MI.
What is the asking price?
The asking price for this property is $530,000.
What are key features of this property?
This property features: Over 2,000 sq ft bar/restaurant space with a functional front‑to‑back layout; Newer mechanicals and renovated restrooms; Basement provides ample storage
