Restaurant with Event
For Sale
$875,000
Pending
16409 Red Arrow Highway, Union Pier, MI 49129
Established restaurant property with dining, bar, private-event, and outdoor seating areas in Union Pier.
Property Size6,847 SF
Days on Market40
Property Features for 16409 Red Arrow Highway
General Information
Standard status
Pending
Size
6,847 SF
Property subtype
Commercial
Restaurant
Patio
Yes
Equipment Included
Yes
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$10,570
Building Details
Building Size
6,847 SF
Year Built
1900
Buildings
1
Stories
6847
Units
1
Listing Agency:
Realty Executives Instant Equity
(269) 208-8996
Listed By:
Jill Golden · License #6501424803
Source:
Erareardonrealty
Added: Jul 24
Changed: Aug 29
Last Checked: Aug 29 at 5:00PM
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 Realty Executives Instant Equity
Investment Insights
Based on property information with market context.
Located at 16409 Red Arrow Highway in Union Pier, Michigan, this 6,847-square-foot restaurant was built in 1900 and includes a main dining room, bar area, and additional seating suitable for private gatherings. An outdoor seating area extends the property’s event capacity and supports uses such as dinner parties, wedding receptions, and other special events.
The sale includes restaurant equipment, licensing, and operating systems, providing a complete physical and operational setup for continued restaurant use. Union Pier serves seasonal visitors and local residents, and an upcoming residential cottage development is planned on adjacent property.
The sale includes restaurant equipment, licensing, and operating systems, providing a complete physical and operational setup for continued restaurant use. Union Pier serves seasonal visitors and local residents, and an upcoming residential cottage development is planned on adjacent property.
Key Highlights
- 6,847‑square‑foot restaurant building constructed in 1900
- Main dining room, bar area, and additional private‑event seating
- Outdoor seating area for dinners, wedding receptions, and special events
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
$76,155
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
8.70%
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%
$1,523,100
$1.5M
Cap Rate 7%
$1,087,929
$1.1M
Cap Rate 9%
$846,167
$846.2K
Market Conditions
NOI Build-Up for 6,847 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
$106.0K $15.48/SF
− Vacancy
−$4.5K −$0.65/SF
EGI
$101.5K $14.83/SF
− OpEx
−$25.4K −$3.71/SF
NOI
$76.2K $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%
$1,523,100
Cap Rate 7%
$1,087,929
Cap Rate 9%
$846,167
Alternative Uses
Best Use
Specialty Retail
$1.09M
$951.9K – $1.27M
NOI $76,155 @ 7.0% cap · market cap 8.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,855 @ 7.0% cap · market cap 11.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49129, MI
736
Population
1,114
Households
0.7
Avg Household Size
58
Median Age
70%
College-Educated
94%
High-School Grad
5.0 sq mi
ZIP Area
147
Density / Sq Mi
$104,000
Median Household Income
$46,964
Median Earnings
$586,900
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 - Established restaurant property with dining, bar, private-event, and outdoor seating areas in Union Pier.
Where is this conventional restaurant located?
The property is located at 16409 Red Arrow Highway Union Pier, MI.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 6,847‑square‑foot restaurant building constructed in 1900; Main dining room, bar area, and additional private‑event seating; Outdoor seating area for dinners, wedding receptions, and special events
