Restaurant Building with Covered
For Sale
$630,000
13581 Red Arrow Highway, Sawyer, MI 49125
COMMERCIAL - Sawyer, MI
Property Size3,226 SF
Lot Size0.58 Acres
Price / SF$195.29
Days on Market52
Property Features for 13581 Red Arrow Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
C-1
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 2, Bathroom 1, Bathroom 3
Interior features
Broadband
Elementary school
River Valley Middlehigh School
Middle school
River Valley Middlehigh School
High school
River Valley Middlehigh School
Elementary school district
River Valley
Middle school district
River Valley
High school district
River Valley
Directions
Located on the east side of Red Arrow Highway conveniently located between exit 6 and 12 off I-94.
Standard status
Active
APN
11-07-0010-0040-18-0
Size
3,226 SF
Lot size
0.58 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
COM AT SW COR FRL SEC 10 T7S R20W TH E 521.77'TH N0DEG07'W 478.54' TO S ROW OF RED ARROW HWY TH N65 DEG13'E 100.18'TO PO
Tax Annual Amount
3017
Legal Description
COM AT SW COR FRL SEC 10 T7S R20W TH E 521.77'TH N0DEG07'W 478.54' TO S ROW OF RED ARROW HWY TH N65 DEG13'E 100.18'TO PO
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1960
Number of units
1
Building materials
Concrete, Wood Siding, Brick
Roof type
Rubber
Listing Agency:
RE/MAX Harbor Country @ New Buffalo · RE/MAX International
(269) 586-2330
Listed By:
Angela Reichert · License #6501455106
(269) 426-1991
Added: Jun 22
Changed: Aug 4
Last Checked: Aug 12 at 10:06AM
MLS# 26030989
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 3,226-square-foot restaurant building sits on 0.58 acres and includes a large bar, front covered porch seating, and a screened porch for additional dining. The property features concrete, wood siding, and brick construction, along with three bathrooms, forced-air heat, central air, and broadband availability. A rubber roof, two air-conditioning units, and a large water heater have recently been installed.
The property is located at 13581 Red Arrow Highway in Sawyer, Michigan, within Berrien County. Landscaped grounds include flowering trees, herbs, and flowers. A Class C County liquor license is available, along with furnishings and equipment. The sale is for the real estate.
The property is located at 13581 Red Arrow Highway in Sawyer, Michigan, within Berrien County. Landscaped grounds include flowering trees, herbs, and flowers. A Class C County liquor license is available, along with furnishings and equipment. The sale is for the real estate.
Key Highlights
- 3,226‑square‑foot restaurant building on 0.58 acres
- Large bar, front covered porch, and screened porch seating
- Recently installed rubber roof, two air‑conditioning units, and large water heater
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
$35,881
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
5.70%
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%
$717,620
$717.6K
Cap Rate 7%
$512,586
$512.6K
Cap Rate 9%
$398,678
$398.7K
Market Conditions
NOI Build-Up for 3,226 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
$49.9K $15.48/SF
− Vacancy
−$2.1K −$0.65/SF
EGI
$47.8K $14.83/SF
− OpEx
−$12.0K −$3.71/SF
NOI
$35.9K $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%
$717,620
Cap Rate 7%
$512,586
Cap Rate 9%
$398,678
Alternative Uses
Best Use
Specialty Retail
$512.6K
$448.5K – $598.0K
NOI $35,881 @ 7.0% cap · market cap 5.70%
Second Best
Retail
$478.4K
$418.6K – $558.2K
NOI $33,489 @ 7.0% cap · market cap 5.32%
Theoretical Best
Office A
$678.8K
$594.0K – $792.0K
NOI $47,519 @ 7.0% cap · market cap 7.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
51
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Operating restaurant property with bar service, screened dining, landscaped grounds, and recent building-system improvements.
Where is this conventional restaurant located?
The property is located at 13581 Red Arrow Highway Sawyer, MI.
What is the asking price?
The asking price for this property is $630,000.
What are key features of this property?
This property features: 3,226‑square‑foot restaurant building on 0.58 acres; Large bar, front covered porch, and screened porch seating; Recently installed rubber roof, two air‑conditioning units, and large water heater
