Restaurant Building with Highway
For Sale
$329,500
1605 N Stephenson Avenue, Iron Mountain, MI 49801
COMMERCIAL - Iron Mountain, MI
Property Size3,288 SF
Lot Size0.48 Acres
Price / SF$100.21
Days on Market137
Property Features for 1605 N Stephenson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Iron Mountain (22007)
Standard status
Active
Size
3,288 SF
Lot size
0.48 Acres
Utilities
Heating system
Forced Air
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Amenities
handicap bathrooms
fireplace
Building Details
Year built
1973
Listing Agency:
HARRIS STATE WIDE
(906) 828-1099
Listed By:
HUGH HARRIS · License #UPAR
(906) 282-7348
Added: Mar 26
Changed: Aug 4
Last Checked: Aug 9 at 10:06PM
MLS# 50202563
Copyright © 2026 Upper Peninsula Association of Realtors. 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 3,288-square-foot commercial building offers a restaurant-oriented layout with flexibility for professional office or retail use. Built in 1973, the property includes new plumbing and wiring, three large handicap-accessible bathrooms described as up to code, a fireplace, forced-air heating, central air, ceiling fans, and ample parking. Public water serves the building.
The property occupies a 0.48-acre site at the corner of US-2 and N Stephenson Avenue, with immediate highway access. It is near Lake Antoine, hotels and motels, and an extensive trail system. The location is also along the daily route used by employees of Boss Snow Plow and Systems Control.
The property occupies a 0.48-acre site at the corner of US-2 and N Stephenson Avenue, with immediate highway access. It is near Lake Antoine, hotels and motels, and an extensive trail system. The location is also along the daily route used by employees of Boss Snow Plow and Systems Control.
Key Highlights
- 3,288‑square‑foot building on a 0.48‑acre site
- Restaurant‑oriented property with office and retail use potential
- New plumbing and wiring
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
$29,663
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
9.00%
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%
$593,260
$593.3K
Cap Rate 7%
$423,757
$423.8K
Cap Rate 9%
$329,589
$329.6K
Market Conditions
NOI Build-Up for 3,288 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
$47.3K $14.40/SF
− Vacancy
−$5.0K −$1.51/SF
EGI
$42.4K $12.89/SF
− OpEx
−$12.7K −$3.87/SF
NOI
$29.7K $9.02/SF
Area
Dickinson County, MI
Vacancy
10.50%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$593,260
Cap Rate 7%
$423,757
Cap Rate 9%
$329,589
Alternative Uses
Best Use
Specialty Retail
$522.4K
$457.1K – $609.5K
NOI $36,570 @ 7.0% cap · market cap 11.10%
Second Best
Office B
$495.2K
$433.3K – $577.8K
NOI $34,667 @ 7.0% cap · market cap 10.52%
Theoretical Best
Office A
$633.9K
$554.7K – $739.6K
NOI $44,374 @ 7.0% cap · market cap 13.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
195
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Market
Vacancy Rate% for Office 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 - Updated plumbing and wiring support restaurant, retail, or professional office use.
Where is this conventional restaurant located?
The property is located at 1605 N Stephenson Avenue Iron Mountain, MI.
What is the asking price?
The asking price for this property is $329,500.
What are key features of this property?
This property features: 3,288‑square‑foot building on a 0.48‑acre site; Restaurant‑oriented property with office and retail use potential; New plumbing and wiring
