Historic Restaurant with Lake
For Sale
$1,500,000
801 S LAPEER Rd, Lake Orion, MI 48362
Versatile restaurant with lake views, multiple dining rooms, and updates.
Property Size6,809 SF
Lot Size0.95 Acres
Days on Market152
Property Features for 801 S LAPEER Rd
General Information
Standard status
Active
Size
6,809 SF
Lot size
0.95 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$24,799
Building Details
Building Size
6,809 SF
Year Built
1950
Listing Agency:
EXP Z Real Estate
(248) 937-1337
Listed By:
Chad Apap · License #6501429996
(248) 937-1337
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 2:22PM
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 EXP Z Real Estate
Investment Insights
Based on property information with market context.
This historic restaurant provides a versatile dining experience, featuring six distinct dining rooms in addition to a bar area. These dining rooms are designed to accommodate both intimate gatherings and larger events, offering the flexibility to be either closed off for privacy or opened up to create a more expansive space. The restaurant includes a downstairs gas fireplace, multiple TVs in the bar and one of the dining rooms, and an electric fireplace heater upstairs. The property offers views of the lake from the front dining room and patio, with the added benefit of watching fireworks during events. Outdoor amenities include patio seating with tables and a lounge area. The restaurant is equipped with one indoor and two outdoor walk-in coolers, as well as a walk-in freezer. The original bar features name plates from notable figures. The building's exterior is enhanced by landscaping. Recent updates to the property include a new fire system, updated equipment, refreshed dining rooms, new hardwood floors upstairs, a new electric fireplace heater, and new patio furniture. Storage areas are available in the basement and upstairs. A projector screen is available for seminars. The restaurant is an operating business.
Key Highlights
- Stunning lake views, enjoy fireworks from the front dining room and patio.
- Versatile dining with 6 separate dining rooms plus a bar, ideal for private events.
- Benefit from ample storage with multiple walk‑in coolers and a walk‑in freezer.
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
$102,805
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
6.85%
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%
$2,056,100
$2.1M
Cap Rate 7%
$1,468,643
$1.5M
Cap Rate 9%
$1,142,278
$1.1M
Market Conditions
NOI Build-Up for 6,809 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
$147.1K $21.60/SF
− Vacancy
−$10.0K −$1.47/SF
EGI
$137.1K $20.13/SF
− OpEx
−$34.3K −$5.03/SF
NOI
$102.8K $15.10/SF
Area
Oakland County, MI
Vacancy
6.80%
Lease Rate
$21.60 /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%
$2,056,100
Cap Rate 7%
$1,468,643
Cap Rate 9%
$1,142,278
Alternative Uses
Best Use
Specialty Retail
$1.47M
$1.29M – $1.71M
NOI $102,805 @ 7.0% cap · market cap 6.85%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
642
Businesses Nearby
126k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 31%
Shops & Services 31%
Dining 30%
Home Improvements & Furnishings 6%
Kroger
Groceries
38,682 visits/mo
0.4 miles
Wendy's
Dining
10,037 visits/mo
0.4 miles
Mobil
Shops & Services
8,842 visits/mo
0.5 miles
Great Lakes Ace Hardware
Home Improvements & Furnishings
7,844 visits/mo
0.5 miles
Leo's Coney Island
Dining
7,773 visits/mo
0.3 miles
Demographics for 48362, MI
15,001
Population
6,428
Households
2.3
Avg Household Size
42
Median Age
44%
College-Educated
98%
High-School Grad
10.1 sq mi
ZIP Area
1,485
Density / Sq Mi
$108,667
Median Household Income
$51,826
Median Earnings
$1,095
Median Rent
$313,600
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?
Conventional restaurant - Versatile restaurant with lake views, multiple dining rooms, and updates.
Where is this conventional restaurant located?
The property is located at 801 S LAPEER Rd Lake Orion, MI.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Stunning lake views, enjoy fireworks from the front dining room and patio.; Versatile dining with 6 separate dining rooms plus a bar, ideal for private events.; Benefit from ample storage with multiple walk‑in coolers and a walk‑in freezer.
