Established Restaurant Opportunity in
For Sale
$449,900
824 North 3rd Street, Marquette, MI 49855
Turnkey restaurant with loyal following on North Third Street.
Property Size1,744 SF
Days on Market122
Property Features for 824 North 3rd Street
General Information
Standard status
Active
Size
1,744 SF
Property subtype
Business Opportunities
Zoning
TSC
Building Details
Building Size
1,744 SF
Year Built
1890
Listing Agency:
RE/MAX
(906) 232-1206
Listed By:
Fran Sevegney · License #6501343111
(906) 232-1206
Source:
Remaxcommercial
Added: Apr 13
Changed: Aug 8
Last Checked: Aug 12 at 3:11AM
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 RE/MAX
Investment Insights
Based on property information with market context.
Available for purchase is a specialty food business known as The Pasta Shop, situated in Marquette. This established business has cultivated a loyal customer base with its Italian-inspired cuisine. The property is located on North Third Street, benefiting from consistent local traffic and a strong community presence. The retail space features a welcoming atmosphere, display cases, and seating for 25-30 customers. The business currently offers carry-out service, DoorDash, and catering, with the potential to resume in-house dining. The commercial kitchen is equipped with a Vulcan gas six-burner stove, a flat top, and two ovens. It also includes stainless steel prep areas, ample workspace, commercial-grade ventilation, a walk-in cooler, and a deli cooler for salads, desserts, and pre-prepped foods. This setup is designed to support continued production and growth. This is an opportunity to acquire a recognizable brand in a prime Marquette location. The property is located in a busy corridor on North 3rd Street.
Key Highlights
- Established, well‑known specialty food business ('The Pasta Shop') with a loyal following.
- Prime location on highly visible North Third Street in Marquette, benefiting from steady traffic and strong community presence.
- Turnkey operation ready for continued production and growth.
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
$24,155
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
5.37%
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%
$483,100
$483.1K
Cap Rate 7%
$345,071
$345.1K
Cap Rate 9%
$268,389
$268.4K
Market Conditions
NOI Build-Up for 1,744 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
$33.1K $18.96/SF
− Vacancy
−$860 −$0.49/SF
EGI
$32.2K $18.47/SF
− OpEx
−$8.1K −$4.62/SF
NOI
$24.2K $13.85/SF
Area
Marquette County, MI
Vacancy
2.60%
Lease Rate
$18.96 /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%
$483,100
Cap Rate 7%
$345,071
Cap Rate 9%
$268,389
Alternative Uses
Best Use
Specialty Retail
$345.1K
$301.9K – $402.6K
NOI $24,155 @ 7.0% cap · market cap 5.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$513.6K
$449.4K – $599.2K
NOI $35,954 @ 7.0% cap · market cap 7.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,107
Businesses Nearby
18k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 60%
Dining 40%
BP
Shops & Services
10,849 visits/mo
0.3 miles
SUBWAY
Dining
3,084 visits/mo
0.4 miles
Jimmy John's
Dining
2,197 visits/mo
0.1 miles
Smoothie King
Dining
1,957 visits/mo
0.4 miles
Demographics for 49855, MI
32,929
Population
15,779
Households
2.1
Avg Household Size
38
Median Age
45%
College-Educated
96%
High-School Grad
206.9 sq mi
ZIP Area
159
Density / Sq Mi
$62,321
Median Household Income
$27,408
Median Earnings
$992
Median Rent
$245,100
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 - Turnkey restaurant with loyal following on North Third Street.
Where is this conventional restaurant located?
The property is located at 824 North 3rd Street Marquette, MI.
What is the asking price?
The asking price for this property is $449,900.
What are key features of this property?
This property features: Established, well‑known specialty food business ('The Pasta Shop') with a loyal following.; Prime location on highly visible North Third Street in Marquette, benefiting from steady traffic and strong community presence.; Turnkey operation ready for continued production and growth.
