Remodeled Restaurant Building in Elk
For Sale
$1,174,000
151 River Street, Elk Rapids, MI 49629
Turn-key restaurant with outdoor dining in desirable downtown market.
Property Size5,580 SF
Lot Size0.18 Acres
Price / SF$210.39
Days on Market169
Property Features for 151 River Street
General Information
Standard status
Active
Size
5,580 SF
Lot size
0.18 Acres
Property subtype
Hospitality
Building Details
Year Built
1925
Listing Agency:
Coldwell Banker Schmidt Traverse City
(231) 929-2300
Listed By:
Alex MacKenzie · License #650649241
(231) 929-2300
Source:
Cbcworldwide
Added: Mar 5
Changed: Jul 6
Last Checked: Jul 31 at 3:52PM
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 Coldwell Banker Schmidt Traverse City
Investment Insights
Based on property information with market context.
This is a 5,580 square foot single-tenant restaurant building situated in downtown Elk Rapids. The property has been recently remodeled and includes a high-end commercial kitchen, quality interior finishes, and an outdoor patio area. The interior space can accommodate approximately 100 or more guests with dining room and bar seating, while the front patio provides seating for about 40 additional patrons. Located along River Street, the town's main commercial corridor, the property benefits from high visibility and foot traffic. The layout is designed to support full-service dining, featuring an efficient back-of-house design. Street parking is available directly in front of the building, with additional public parking located nearby. The property is situated on 0.18 acres. FF&E and a liquor license are available and may be negotiated separately.
Key Highlights
- Prime 5,580 SF single‑tenant restaurant building in Downtown Elk Rapids.
- Recently remodeled with high‑end commercial kitchen and quality interior finishes.
- Welcoming outdoor patio area with seating for about 40.
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
$62,063
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
5.29%
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%
$1,241,260
$1.2M
Cap Rate 7%
$886,614
$886.6K
Cap Rate 9%
$689,589
$689.6K
Market Conditions
NOI Build-Up for 5,580 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
$86.4K $15.48/SF
− Vacancy
−$3.6K −$0.65/SF
EGI
$82.8K $14.83/SF
− OpEx
−$20.7K −$3.71/SF
NOI
$62.1K $11.12/SF
Area
Antrim 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%
$1,241,260
Cap Rate 7%
$886,614
Cap Rate 9%
$689,589
Alternative Uses
Best Use
Specialty Retail
$886.6K
$775.8K – $1.03M
NOI $62,063 @ 7.0% cap · market cap 5.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$993.0K
$868.9K – $1.16M
NOI $69,511 @ 7.0% cap · market cap 5.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
361
Businesses Nearby
15k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Mobil
Shops & Services
9,553 visits/mo
0.3 miles
Shell
Shops & Services
2,168 visits/mo
0.4 miles
Fifth Third Bank & ATM
Shops & Services
1,722 visits/mo
0.4 miles
Huntington Bank
Shops & Services
1,626 visits/mo
0.1 miles
Demographics for 49629, MI
1,997
Population
1,696
Households
1.2
Avg Household Size
60
Median Age
46%
College-Educated
99%
High-School Grad
3.8 sq mi
ZIP Area
526
Density / Sq Mi
$74,318
Median Household Income
$46,250
Median Earnings
$1,032
Median Rent
$347,100
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 - Turn-key restaurant with outdoor dining in desirable downtown market.
Where is this conventional restaurant located?
The property is located at 151 River Street Elk Rapids, MI.
What is the asking price?
The asking price for this property is $1,174,000.
What are key features of this property?
This property features: Prime 5,580 SF single‑tenant restaurant building in Downtown Elk Rapids.; Recently remodeled with **high‑end commercial kitchen and quality interior finishes.**; Welcoming outdoor patio area with seating for about 40.
