Restaurant Building with
For Sale
$320,000
Pending
1506 Chicago Dr SW, Wyoming, MI 49509
Restaurant property with commercial kitchen equipment, dining furnishings, and B-2 zoning.
Property Size2,228 SF
Days on Market116
Property Features for 1506 Chicago Dr SW
General Information
Standard status
Pending
Size
2,228 SF
Property subtype
Retail
Zoning
B-2
Additional Details
Furnished
Yes
Sprinkler System
Yes
Equipment Included
Yes
Amenities
Water
Sewer
Natural Gas
Building Details
Year Built
1964
Construction
block and brick
Listing Agency:
Liberty Realty Corp MI
(616) 532-9369
Listed By:
Frederick Otterbein
(616) 532-9369
Source:
Carwm.resimplifi
Added: May 7
Changed: Aug 29
Last Checked: Aug 30 at 1:51PM
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 Liberty Realty Corp MI
Investment Insights
Based on property information with market context.
This 2,228-square-foot restaurant building dates to 1964 and uses block-and-brick construction. The interior includes a carpeted dining area and tiled kitchen, with the building, real property, fixtures, and equipment offered together on an as-is basis. The restaurant business itself is excluded from the sale.
Included equipment consists of a fire-suppression system, commercial conveyor toaster, steam table, ice machine, condiment-bar cooler, flat-top fryer, eight-burner range and oven, deep fryer, dishwasher, three coolers, and one freezer. Dining furnishings include thirteen booths and eleven four-top tables with chairs. CO2 tanks are rented, while the pop and refreshment dispenser is negotiable subject to vendor interest. Equipment and fixtures purchased must be identified and agreed upon in writing by buyer and seller.
Included equipment consists of a fire-suppression system, commercial conveyor toaster, steam table, ice machine, condiment-bar cooler, flat-top fryer, eight-burner range and oven, deep fryer, dishwasher, three coolers, and one freezer. Dining furnishings include thirteen booths and eleven four-top tables with chairs. CO2 tanks are rented, while the pop and refreshment dispenser is negotiable subject to vendor interest. Equipment and fixtures purchased must be identified and agreed upon in writing by buyer and seller.
Key Highlights
- 2,228‑square‑foot restaurant building constructed in 1964
- Block‑and‑brick construction with carpeted dining area and tiled kitchen
- B‑2 zoning
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
$24,781
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
7.74%
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%
$495,620
$495.6K
Cap Rate 7%
$354,014
$354.0K
Cap Rate 9%
$275,344
$275.3K
Market Conditions
NOI Build-Up for 2,228 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
$34.5K $15.48/SF
− Vacancy
−$1.4K −$0.65/SF
EGI
$33.0K $14.83/SF
− OpEx
−$8.3K −$3.71/SF
NOI
$24.8K $11.12/SF
Area
Kent 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%
$495,620
Cap Rate 7%
$354,014
Cap Rate 9%
$275,344
Alternative Uses
Best Use
Specialty Retail
$354.0K
$309.8K – $413.0K
NOI $24,781 @ 7.0% cap · market cap 7.74%
Second Best
Retail
$330.4K
$289.1K – $385.5K
NOI $23,129 @ 7.0% cap · market cap 7.23%
Theoretical Best
Office A
$398.5K
$348.7K – $464.9K
NOI $27,894 @ 7.0% cap · market cap 8.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
347
Businesses Nearby
36k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Shops & Services 37%
McDonald's
Dining
15,065 visits/mo
0.4 miles
Speedway
Shops & Services
13,431 visits/mo
0.5 miles
Taco Bell
Dining
8,002 visits/mo
0.4 miles
Demographics for 49509, MI
28,340
Population
10,611
Households
2.7
Avg Household Size
34
Median Age
19%
College-Educated
85%
High-School Grad
7.3 sq mi
ZIP Area
3,882
Density / Sq Mi
$64,981
Median Household Income
$38,356
Median Earnings
$983
Median Rent
$183,400
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 commercial kitchen equipment, dining furnishings, and B-2 zoning.
Where is this conventional restaurant located?
The property is located at 1506 Chicago Dr SW Wyoming, MI.
What is the asking price?
The asking price for this property is $320,000.
What are key features of this property?
This property features: 2,228‑square‑foot restaurant building constructed in 1964; Block‑and‑brick construction with carpeted dining area and tiled kitchen; B‑2 zoning
