Restaurant with Entertainment
For Sale
$424,900
1300 W Sherman Boulevard, Muskegon, MI 49441
Established restaurant and bar with updated interiors, a newer deck, kitchen improvements, and on-site parking.
Property Size2,505 SF
Price / SF$169.62
Days on Market15
Property Features for 1300 W Sherman Boulevard
General Information
Standard status
Active
Size
2,505 SF
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
Yes
Additional Details
Business Included
Yes
Road Access
Yes
Amenities
deck
live music
comedy
DJ's and karaoke
pool tables
jukebox
keno
TVs
Building Details
Year Built
1950
Listing Agency:
Legacy Real Estate Partners
(231) 683-5597
Listed By:
Darrin Miller
Source:
Katie-k
Added: Aug 15
Changed: Aug 28
Last Checked: Aug 28 at 3:38PM
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 Legacy Real Estate Partners
Investment Insights
Based on property information with market context.
This conventional restaurant property includes a 2,505-square-foot building constructed in 1950, with seating for over 100 guests. Recent improvements include updated flooring, exterior work, bathrooms, kitchen components, and a newer deck. The property also includes business equipment, inventory, amenities, and a license.
Positioned on W Sherman Boulevard, the property sits on more than 1 acre and includes a large parking area. The existing layout supports dining, bar service, and entertainment, with features that include pool tables, a jukebox, TVs, and space for live music, comedy, DJs, karaoke, and sporting events.
The site offers additional exterior area for expansion or development, subject to applicable approvals. The building, operating components, and included business assets provide a consolidated restaurant and entertainment setup.
Positioned on W Sherman Boulevard, the property sits on more than 1 acre and includes a large parking area. The existing layout supports dining, bar service, and entertainment, with features that include pool tables, a jukebox, TVs, and space for live music, comedy, DJs, karaoke, and sporting events.
The site offers additional exterior area for expansion or development, subject to applicable approvals. The building, operating components, and included business assets provide a consolidated restaurant and entertainment setup.
Key Highlights
- 2,505‑square‑foot restaurant building constructed in 1950
- Seating capacity for over 100 guests
- More than 1 acre with a large parking area
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
$27,862
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
6.56%
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%
$557,240
$557.2K
Cap Rate 7%
$398,029
$398.0K
Cap Rate 9%
$309,578
$309.6K
Market Conditions
NOI Build-Up for 2,505 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
$38.8K $15.48/SF
− Vacancy
−$1.6K −$0.65/SF
EGI
$37.1K $14.83/SF
− OpEx
−$9.3K −$3.71/SF
NOI
$27.9K $11.12/SF
Area
Muskegon 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%
$557,240
Cap Rate 7%
$398,029
Cap Rate 9%
$309,578
Alternative Uses
Best Use
Specialty Retail
$398.0K
$348.3K – $464.4K
NOI $27,862 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$23.52M
$20.58M – $27.45M
NOI $1,646,718 @ 7.0% cap · market cap 387.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
359
Businesses Nearby
59k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 54%
Home Improvements & Furnishings 46%
The Home Depot
Home Improvements & Furnishings
26,924 visits/mo
0.4 miles
Wesco
Shops & Services
25,602 visits/mo
0.2 miles
Lake Michigan Credit Union
Shops & Services
6,072 visits/mo
0.5 miles
Demographics for 49441, MI
36,886
Population
16,491
Households
2.2
Avg Household Size
43
Median Age
28%
College-Educated
94%
High-School Grad
21.7 sq mi
ZIP Area
1,700
Density / Sq Mi
$65,235
Median Household Income
$38,132
Median Earnings
$1,080
Median Rent
$194,000
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 - Established restaurant and bar with updated interiors, a newer deck, kitchen improvements, and on-site parking.
Where is this conventional restaurant located?
The property is located at 1300 W Sherman Boulevard Muskegon, MI.
What is the asking price?
The asking price for this property is $424,900.
What are key features of this property?
This property features: 2,505‑square‑foot restaurant building constructed in 1950; Seating capacity for over 100 guests; More than 1 acre with a large parking area
