Building Details

Year Built 1971

Listing Agency: Keller Williams Northern Michi l***@kw.com Show Phone

Listed By: Lorri A Schreiber · License #6506034931 Show Phone

Source: Exitrealty

Added: Oct 22, 2024 Changed: Aug 8 Last Checked: Aug 8 at 6:25AM

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Investment Insights

Based on property information with market context.

This turnkey restaurant, known as Cozy Corners, presents an opportunity for restaurateurs and entrepreneurs. The property benefits from a waterfront location and established reputation. The restaurant has a capacity of 92 people inside, with additional seating available outside. Ten boat slips on the St Marys River provide the only docking location in the region for food and beverages. The restaurant is known for hosting popular events throughout the year. The property size is 3,520 square feet.

Key Highlights

• Prime waterfront location on the St Marys River with 10 boat slips, the only restaurant in the region offering dockside dining.
• Turnkey restaurant operation with established reputation and steady income flow.
• High capacity: 92‑person indoor seating plus ample outdoor seating.

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

$46,130

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

3.09%

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%

$922,600 $922.6K

Cap Rate 7%

$659,000 $659.0K

Cap Rate 9%

$512,556 $512.6K

Market Conditions

NOI Build-Up for 3,520 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

$69.7K $19.80/SF

− Vacancy

−$8.2K −$2.33/SF

EGI

$61.5K $17.47/SF

− OpEx

−$15.4K −$4.37/SF

NOI

$46.1K $13.11/SF

Area

Macomb County, MI

Vacancy

11.75%

Lease Rate

$19.80 /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%

$922,600

Cap Rate 7%

$659,000

Cap Rate 9%

$512,556

Alternative Uses

Best Use

Specialty Retail

$659.0K

$576.6K – $768.8K (±1% cap)

NOI $46,130 @ 7.0% cap · market cap 3.09%

Second Best

Hotel Hospitality

$193.5K

$169.3K – $225.7K (±1% cap)

NOI $13,543 @ 7.0% cap · market cap 0.91%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 49710, MI

368

Population

390

Households

0.9

Avg Household Size

58

Median Age

20%

College-Educated

92%

High-School Grad

34.4 sq mi

ZIP Area

11

Density / Sq Mi

$73,500

Median Household Income

$47,865

Median Earnings

$184,800

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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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Turnkey restaurant with waterfront views and boat access.

Where is this conventional restaurant located?

The property is located at 6800 E Fifteen Mile Road Barbeau, MI.

What is the asking price?

The asking price for this property is $1,495,000.

What are key features of this property?

This property features: Prime waterfront location on the St Marys River with 10 boat slips, the only restaurant in the region offering dockside dining.; Turnkey restaurant operation with established reputation and steady income flow.; High capacity: **92‑person indoor seating plus ample outdoor seating.**