Remodeled Restaurant with Covered
New
For Sale
$1,349,000
12868 Red Arrow Hwy, Sawyer, MI 49125
Restaurant property with indoor and outdoor seating, private offices, on-site equipment, and furnishings.
Property Size7,521 SF
Price / SF$179.36
Days on Market7
Property Features for 12868 Red Arrow Hwy
General Information
Standard status
Active
Size
7,521 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Restaurant
Patio
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Building Details
Year Built
1999
Year Renovated
2026
Stories
2
Listing Agency:
@properties Christie's International R.E.
Listed By:
Ronald Zarantenello
(269) 469-0700
Source:
Findmichiganhomelistings
Added: Sep 2
Changed: Sep 7
Last Checked: Sep 8 at 8:38AM
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 @properties Christie's International R.E.
Investment Insights
Based on property information with market context.
This restaurant property was remodeled in 2026 and includes a 3,550+ SF main floor with wood flooring, custom wood trusses, updated mechanical systems, lighting, and windows. Interior amenities include a stone-topped 30-foot bar with seating for 68+, an atrium dining room for 36+, and a flexible third area suited to an eight-person chef’s table or waiting area. Covered and open porches add seating for 28+ and connect directly with the interior.
The property is positioned directly on Red Arrow Highway and sits on an extra-large wooded lot with abundant parking and room for expansion. The sale includes the real estate, on-site equipment, fixtures, and furnishings. Upstairs are private office spaces, a kitchenette, and a full bathroom.
The property is positioned directly on Red Arrow Highway and sits on an extra-large wooded lot with abundant parking and room for expansion. The sale includes the real estate, on-site equipment, fixtures, and furnishings. Upstairs are private office spaces, a kitchenette, and a full bathroom.
Key Highlights
- Remodeled in 2026 with new wood floors, custom wood trusses, mechanicals, lighting, and windows
- 3,550+ SF main floor with a 30' bar seating 68+
- Atrium dining room accommodates 36+ and overlooks wooded surroundings
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
$83,651
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
6.20%
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%
$1,673,020
$1.7M
Cap Rate 7%
$1,195,014
$1.2M
Cap Rate 9%
$929,456
$929.5K
Market Conditions
NOI Build-Up for 7,521 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
$116.4K $15.48/SF
− Vacancy
−$4.9K −$0.65/SF
EGI
$111.5K $14.83/SF
− OpEx
−$27.9K −$3.71/SF
NOI
$83.7K $11.12/SF
Area
Berrien 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%
$1,673,020
Cap Rate 7%
$1,195,014
Cap Rate 9%
$929,456
Alternative Uses
Best Use
Specialty Retail
$1.20M
$1.05M – $1.39M
NOI $83,651 @ 7.0% cap · market cap 6.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.58M
$1.38M – $1.85M
NOI $110,783 @ 7.0% cap · market cap 8.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
73
Businesses Nearby
6k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon Petroleum
Shops & Services
3,927 visits/mo
0.5 miles
Fifth Third Bank & ATM
Shops & Services
1,816 visits/mo
0.2 miles
Demographics for 49125, MI
1,743
Population
1,649
Households
1.1
Avg Household Size
56
Median Age
31%
College-Educated
97%
High-School Grad
13.1 sq mi
ZIP Area
133
Density / Sq Mi
$79,688
Median Household Income
$49,621
Median Earnings
$803
Median Rent
$300,000
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 - Restaurant property with indoor and outdoor seating, private offices, on-site equipment, and furnishings.
Where is this conventional restaurant located?
The property is located at 12868 Red Arrow Hwy Sawyer, MI.
What is the asking price?
The asking price for this property is $1,349,000.
What are key features of this property?
This property features: Remodeled in 2026 with new wood floors, custom wood trusses, mechanicals, lighting, and windows; 3,550+ SF main floor with a 30' bar seating 68+; Atrium dining room accommodates 36+ and overlooks wooded surroundings
