Ground-Floor Cocktail
For Sale
$599,900
413 E Huron Street, Ann Arbor, MI 48104
Operating lounge with cocktail, coffee, food, patio, and entertainment components in downtown Ann Arbor.
Property Size32,017 SF
Price / SF$258.58
Days on Market18
Property Features for 413 E Huron Street
General Information
Standard status
Active
Size
32,017 SF
Property subtype
Commercial
Zoning
Commercial
Restaurant
Seating Capacity
74
Patio
Yes
Liquor License
Yes
Additional Details
Floor
Ground
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$2,933,487
Amenities
TVs
Building Details
Building Size
32,017 SF
Year Built
2024
Listing Agency:
Century 21 Curran & Oberski
(313) 274-7200
Listed By:
Robert C Struk · License #6501263518
Source:
Thebrokeragehouse
Added: Aug 4
Changed: Aug 16
Last Checked: Aug 20 at 2:49PM
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 Century 21 Curran & Oberski
Investment Insights
Based on property information with market context.
This operating cocktail and coffee lounge occupies 2,320 square feet on the ground floor of the Foundry Lofts building. The layout accommodates up to 74 patrons and includes an interior seating area, open-air patio seating, bar service, TVs, and a kitchen equipped for fresh-baked flatbreads and beverage preparation. The offering includes cocktails, draft beer, liquor, wine, gourmet espresso, coffee, and tea, with both dine-in and grab-and-go service supported by the existing setup.
Located at 413 E Huron Street in downtown Ann Arbor, the business is offered with a 10-year lease and a 5-year renewal option. The sale includes a transferable Class C liquor license covering an outdoor service area, Sunday sales, and spirits and mixed spirit drinks. Kitchen and beverage equipment are included, along with the existing interior improvements. The property is zoned Commercial and was built in 2024.
Located at 413 E Huron Street in downtown Ann Arbor, the business is offered with a 10-year lease and a 5-year renewal option. The sale includes a transferable Class C liquor license covering an outdoor service area, Sunday sales, and spirits and mixed spirit drinks. Kitchen and beverage equipment are included, along with the existing interior improvements. The property is zoned Commercial and was built in 2024.
Key Highlights
- 2,320‑square‑foot operating cocktail and coffee lounge
- Seating capacity for up to 74 patrons
- Ground‑floor location in the Foundry Lofts building
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
$30,584
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
5.10%
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%
$611,680
$611.7K
Cap Rate 7%
$436,914
$436.9K
Cap Rate 9%
$339,822
$339.8K
Market Conditions
NOI Build-Up for 2,320 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
$43.2K $18.60/SF
− Vacancy
−$2.4K −$1.02/SF
EGI
$40.8K $17.58/SF
− OpEx
−$10.2K −$4.39/SF
NOI
$30.6K $13.18/SF
Area
Ann Arbor, MI
Vacancy
5.50%
Lease Rate
$18.60 /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%
$611,680
Cap Rate 7%
$436,914
Cap Rate 9%
$339,822
Alternative Uses
Best Use
Specialty Retail
$436.9K
$382.3K – $509.7K
NOI $30,584 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$512.4K
$448.3K – $597.8K
NOI $35,867 @ 7.0% cap · market cap 5.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
4,680
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Starbucks — 701 Tappan Ave, Ann Arbor, MI 48109
- Argus — 424 cross st, ann arbor, mi 48104
- Brown Jug Restaurant — 1204 S University Ave, Ann Arbor, MI 48104
- The Garage Bar — 618 Church St, Ann Arbor, MI 48104
- Good Time Charley's — 1140 S University Ave, Ann Arbor, MI 48104
Frequently Asked Questions
What type of property is this?
Bar & Pub - Operating lounge with cocktail, coffee, food, patio, and entertainment components in downtown Ann Arbor.
Where is this bar & pub located?
The property is located at 413 E Huron Street Ann Arbor, MI.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: 2,320‑square‑foot operating cocktail and coffee lounge; Seating capacity for up to 74 patrons; Ground‑floor location in the Foundry Lofts building
