Building Details

Year Built 1960

Buildings 1

Listing Agency: RE/MAX Harbor Country @ New Buffalo

Listed By: Angela Reichert · License #6501455106 Show Phone

Source: Katie-k

Added: Sep 21 Last Checked: Sep 24 at 2:35PM

Report an Issue

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 Harbor Country @ New Buffalo

Investment Insights

Based on property information with market context.

Built in 1960, this 3226 SF restaurant property on Red Arrow Hwy in Sawyer includes a substantial bar, front covered porch seating, and a screened porch for additional dining space. The grounds feature landscaped garden areas with flowering trees, herbs, and flowers.

Recent improvements include a new roof, two air conditioning units, and a large water heater. Furnishings and equipment are available, along with a Class C County liquor license. The offering is for real estate only, providing an established restaurant setting with multiple existing customer-facing and service features.

Key Highlights

• 3226 SF restaurant building at 13581 Red Arrow Hwy, Sawyer, MI 49125
• Built in 1960
• Large bar, covered front porch, and screened porch

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 (±1% cap)

NOI $35,881 @ 7.0% cap · market cap 5.70%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$678.8K

$594.0K – $792.0K (±1% cap)

NOI $47,519 @ 7.0% cap · market cap 7.54%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Unlock full access to Insights Subscribe to Realmo Intelligence

Open Analytics

Current Use

Conventional restaurants

Suggested Use

Top Pick Auto Repair Shop Auto Parts Store Furniture & Home Goods Storage Facility Nail Salon Skin Care Clinic

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

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

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Similar For Sale Nearby

Remodeled Restaurant with Covered Porches

Sawyer, MI 49125

$1,349,000

7,521 SF

View details

Restaurant Building with Covered Porches

13581 Red Arrow Highway, Sawyer, MI 49125

$630,000

3,226 SF

View details

North Wind Llama Ranch

11971 S Hildebrandt, Sawyer, MI 49125

$2,195,000

18.80 Acres

View details

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Existing bar and covered and screened porches support indoor and outdoor dining.

Where is this conventional restaurant located?

The property is located at 13581 Red Arrow Hwy 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: 3226 SF restaurant building at 13581 Red Arrow Hwy, Sawyer, MI 49125; Built in 1960; Large bar, covered front porch, and screened porch