Restaurant Building with
For Sale
$595,000
159 Chartier Street, Marine City, MI 48040
Commercial building with drive-through, redevelopment potential, and excellent parking.
Property Size1,800 SF
Price / SF$330.56
Days on Market144
Property Features for 159 Chartier Street
General Information
Standard status
Active
Size
1,800 SF
Property subtype
Commercial
Zoning
Commercial
Lease Term
Cash, Other
Taxes and HOA fees
Annual Taxes
$9,728
Building Details
Building Size
1,800 SF
Year Built
2016
Listing Agency:
Berkshire Hathaway HomeServices Kee Realty SCS
(586) 774-2300
Listed By:
Mario Como · License #6506045071
(586) 774-2300
Source:
Sabudarealty
Added: Apr 3
Changed: Aug 23
Last Checked: Aug 23 at 9:28AM
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 Berkshire Hathaway HomeServices Kee Realty SCS
Investment Insights
Based on property information with market context.
The property features a commercial building completed in 2016. The current tenant has a 10-year track record with a lease extending through spring 2027. The buyer has the option to maintain the tenant long term or redevelop the property for another food service business. The property includes excellent parking and a drive-through. A portion of the land allows for the development of a second income-producing building. The building is ADA compliant, including two ADA bathrooms for employees and customers. The bike score is 63, indicating it is bikeable, and the walk score is 76, indicating it is very walkable.
Key Highlights
- Established tenant with a 10‑year track record and lease through Spring 2027.
- Benefit from drive‑through access and excellent parking.
- Opportunity to develop a second income‑producing building on the property.
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
$24,931
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
4.19%
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%
$498,620
$498.6K
Cap Rate 7%
$356,157
$356.2K
Cap Rate 9%
$277,011
$277.0K
Market Conditions
NOI Build-Up for 1,800 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
$34.1K $18.96/SF
− Vacancy
−$887 −$0.49/SF
EGI
$33.2K $18.47/SF
− OpEx
−$8.3K −$4.62/SF
NOI
$24.9K $13.85/SF
Area
St. Clair County, MI
Vacancy
2.60%
Lease Rate
$18.96 /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%
$498,620
Cap Rate 7%
$356,157
Cap Rate 9%
$277,011
Alternative Uses
Best Use
Specialty Retail
$356.2K
$311.6K – $415.5K
NOI $24,931 @ 7.0% cap · market cap 4.19%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.35M
$1.18M – $1.58M
NOI $94,723 @ 7.0% cap · market cap 15.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
325
Businesses Nearby
27k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 84%
Shops & Services 16%
McDonald's
Dining
22,665 visits/mo
0.5 miles
Huntington Bank
Shops & Services
4,334 visits/mo
0.4 miles
Demographics for 48040, MI
9,994
Population
4,588
Households
2.2
Avg Household Size
44
Median Age
24%
College-Educated
93%
High-School Grad
6.9 sq mi
ZIP Area
1,448
Density / Sq Mi
$69,661
Median Household Income
$45,365
Median Earnings
$955
Median Rent
$185,500
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?
Drive through restaurant - Commercial building with drive-through, redevelopment potential, and excellent parking.
Where is this drive through restaurant located?
The property is located at 159 Chartier Street Marine City, MI.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Established tenant with a 10‑year track record and lease through Spring 2027.; Benefit from drive‑through access and excellent parking.; Opportunity to develop a second income‑producing building on the property.
