Renovated Restaurant with
For Sale
$498,000
113 N Farmer St, Otsego, MI 49078
Renovated restaurant property with a full kitchen, dining and takeout capability, plus an upstairs apartment.
Property Size3,420 SF
Price / SF$145.61
Days on Market459
Property Features for 113 N Farmer St
General Information
Standard status
Active
Size
3,420 SF
Property subtype
Commercial
Restaurant
Seating Capacity
70
Equipment Included
Yes
Additional Details
Furnished
Yes
Building Details
Year Built
1900
Buildings
1
Listing Agency:
Chuck Jaqua, REALTOR
(269) 217-9878
Listed By:
Joanne K Becker · License #6502342093
Source:
Metrodetroithomeguide
Added: May 30, 2025
Changed: Aug 29
Last Checked: Aug 30 at 6:17PM
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 Chuck Jaqua, REALTOR
Investment Insights
Based on property information with market context.
Located at 113 N Farmer St in Otsego, this restaurant property combines a fully equipped commercial kitchen with a dining room and takeout functionality. The building contains 3,420 square feet and dates to 1900, with restoration and renovation work reflecting its longstanding storefront character.
The main level accommodates approximately 65–70 seats, while the kitchen is configured to support higher volume. A second-floor apartment adds 900 square feet with two bedrooms and one bathroom; the apartment was remodeled in 2022. A city parking lot is positioned near both the front and rear entrances. The sale includes the real estate and FF&E.
The main level accommodates approximately 65–70 seats, while the kitchen is configured to support higher volume. A second-floor apartment adds 900 square feet with two bedrooms and one bathroom; the apartment was remodeled in 2022. A city parking lot is positioned near both the front and rear entrances. The sale includes the real estate and FF&E.
Key Highlights
- 3,420‑square‑foot restaurant property at 113 N Farmer St, Otsego, MI 49078
- Full commercial kitchen supporting dine‑in and takeout operations
- Seating for 65–70 with kitchen capacity beyond the seating count
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
$38,039
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
7.64%
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%
$760,780
$760.8K
Cap Rate 7%
$543,414
$543.4K
Cap Rate 9%
$422,656
$422.7K
Market Conditions
NOI Build-Up for 3,420 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
$52.9K $15.48/SF
− Vacancy
−$2.2K −$0.65/SF
EGI
$50.7K $14.83/SF
− OpEx
−$12.7K −$3.71/SF
NOI
$38.0K $11.12/SF
Area
Allegan County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$760,780
Cap Rate 7%
$543,414
Cap Rate 9%
$422,656
Alternative Uses
Best Use
Specialty Retail
$543.4K
$475.5K – $634.0K
NOI $38,039 @ 7.0% cap · market cap 7.64%
Second Best
Industrial
$228.5K
$199.9K – $266.6K
NOI $15,993 @ 7.0% cap · market cap 3.21%
Theoretical Best
Hotel Hospitality
$32.12M
$28.10M – $37.47M
NOI $2,248,213 @ 7.0% cap · market cap 451.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
288
Businesses Nearby
3k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 100%
Bobs True Value
Home Improvements & Furnishings
2,576 visits/mo
0.1 miles
Demographics for 49078, MI
9,483
Population
4,315
Households
2.2
Avg Household Size
41
Median Age
19%
College-Educated
92%
High-School Grad
49.5 sq mi
ZIP Area
192
Density / Sq Mi
$77,517
Median Household Income
$44,956
Median Earnings
$1,106
Median Rent
$189,600
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 - Renovated restaurant property with a full kitchen, dining and takeout capability, plus an upstairs apartment.
Where is this conventional restaurant located?
The property is located at 113 N Farmer St Otsego, MI.
What is the asking price?
The asking price for this property is $498,000.
What are key features of this property?
This property features: 3,420‑square‑foot restaurant property at 113 N Farmer St, Otsego, MI 49078; Full commercial kitchen supporting dine‑in and takeout operations; Seating for 65–70 with kitchen capacity beyond the seating count
