Building Details

Year built 1998

Roof type Shingle

Listing Agency: Berkshire Hathaway Home Service Kee Realty Show Phone

Listed By: Steve Hudkins · License #6502110924 Show Phone

Added: Oct 31, 2024 Changed: Sep 4 Last Checked: Sep 25 at 8:06AM

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MLS# 50160015

Copyright © 2026 Southeastern Border Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This 5,076-square-foot restaurant property was built in 1998 and includes equipment, fixtures, and licenses. The interior provides a reception area, restrooms, ceramic flooring, wood flooring, and central air conditioning. A parking lot serves the building, which also has a shingle roof and a private water source.

Set on 5.67 acres at 11191 Telegraph Road in Erie, Michigan, the property includes two outdoor patios overlooking private settings. The building’s layout and outdoor areas provide additional space beyond the primary dining operation.

Key Highlights

• 5,076‑square‑foot restaurant building on 5.67 acres
• Equipment, fixtures, and licenses included
• Two outdoor patios overlooking private settings

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 (±1% cap)

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 (±1% cap)

NOI $366,467 @ 7.0% cap · market cap 40.95%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

La Fiesta Restaurant Restaurant

Suggested Use

Top Pick Real Estate Agency Plumbing Service Pharmacy Kitchen & Bath Showroom Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Yes

Liquor license

Location Intelligence

Trade Area within ½ mile

15

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

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Established restaurant with included equipment, fixtures, licenses, and two outdoor patio areas.

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: 5,076‑square‑foot restaurant building on 5.67 acres; Equipment, fixtures, and licenses included; Two outdoor patios overlooking private settings