Mexican Restaurant with Outdoor
For Sale
$895,000
11191 Telegraph Road, Erie, MI 48133
Includes restaurant equipment, fixtures, and licenses with the sale.
Property Size5,076 SF
Days on Market660
Property Features for 11191 Telegraph Road
General Information
Standard status
Active
Size
5,076 SF
Property subtype
Business Opportunity
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
Yes
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$10,232
Building Details
Building Size
5,076 SF
Year Built
1998
Listing Agency:
Berkshire Hathaway Home Service Kee Realty
(734) 735-4780
Listed By:
Steve Hudkins · License #6502110924
(734) 735-4780
Source:
Phgrealty
Added: Oct 31, 2024
Changed: Aug 18
Last Checked: Aug 20 at 2:08PM
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 Berkshire Hathaway Home Service Kee Realty
Investment Insights
Based on property information with market context.
This Mexican restaurant property includes the equipment and fixtures needed for its existing restaurant use. The building was constructed in 1998 and features two outdoor patios positioned to overlook private settings. Licenses are included with the sale. The property is located at 11191 Telegraph Road in Erie Township, Michigan, within ZIP code 48133. The restaurant has operated long enough to establish a clientele, adding continuity to the existing business profile.
Key Highlights
- Mexican restaurant property at 11191 Telegraph Road, Erie Township, MI 48133
- Two outdoor patios overlooking private settings
- Equipment and fixtures included with the sale
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
$49,442
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
5.52%
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%
$988,840
$988.8K
Cap Rate 7%
$706,314
$706.3K
Cap Rate 9%
$549,356
$549.4K
Market Conditions
NOI Build-Up for 5,076 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
$71.3K $14.04/SF
− Vacancy
−$5.3K −$1.05/SF
EGI
$65.9K $12.99/SF
− OpEx
−$16.5K −$3.25/SF
NOI
$49.4K $9.74/SF
Area
Monroe County, MI
Vacancy
7.50%
Lease Rate
$14.04 /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%
$988,840
Cap Rate 7%
$706,314
Cap Rate 9%
$549,356
Alternative Uses
Best Use
Specialty Retail
$706.3K
$618.0K – $824.0K
NOI $49,442 @ 7.0% cap · market cap 5.52%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$5.24M
$4.58M – $6.11M
NOI $366,467 @ 7.0% cap · market cap 40.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
16
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48133, MI
5,500
Population
2,646
Households
2.1
Avg Household Size
45
Median Age
20%
College-Educated
91%
High-School Grad
27.2 sq mi
ZIP Area
202
Density / Sq Mi
$65,867
Median Household Income
$45,274
Median Earnings
$851
Median Rent
$181,400
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Includes restaurant equipment, fixtures, and licenses with the sale.
Where is this conventional restaurant located?
The property is located at 11191 Telegraph Road Erie, MI.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Mexican restaurant property at 11191 Telegraph Road, Erie Township, MI 48133; Two outdoor patios overlooking private settings; Equipment and fixtures included with the sale
