Turn-Key Restaurant on
For Sale
$699,000
20400 E Austin Road, Manchester, MI 48158
Restaurant building rebuilt and expanded in 2003, located at a busy intersection and bordering the River Raisin.
Property Size3,155 SF
Lot Size1.65 Acres
Price / SF$221.55
Days on Market35
Property Features for 20400 E Austin Road
General Information
Standard status
Active
Size
3,155 SF
Lot size
1.65 Acres
Property subtype
Business Opportunities
Additional Details
Business Included
Yes
Amenities
3
239319332365
Building Details
Year Built
1950
Year Renovated
2003
Listing Agency:
(734) 926-0230
Listed By:
Swisher Commercial
(734) 926-0230
Source:
Xome
Added: Jul 7
Changed: Aug 8
Last Checked: Aug 9 at 4:30AM
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 Swisher Commercial
Investment Insights
Based on property information with market context.
A well-established, impeccably maintained turn-key restaurant with a 3,155 SF building rebuilt and expanded in 2003. The property sits on 1.65 acres and borders the River Raisin.
The restaurant is located on the southeast edge of Manchester city limits at the busy intersection of M-52 and Austin Road. Showings are by appointment only, and buyers must sign a confidentiality agreement. Please do not approach staff; contact the broker for details.
The restaurant is located on the southeast edge of Manchester city limits at the busy intersection of M-52 and Austin Road. Showings are by appointment only, and buyers must sign a confidentiality agreement. Please do not approach staff; contact the broker for details.
Key Highlights
- 3,155 SF restaurant building rebuilt and expanded in 2003
- Sits on 1.65 acres bordering the River Raisin
- Located on the southeast edge of Manchester city limits at the intersection of M‑52 and Austin Road
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
$43,802
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
6.27%
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%
$876,040
$876.0K
Cap Rate 7%
$625,743
$625.7K
Cap Rate 9%
$486,689
$486.7K
Market Conditions
NOI Build-Up for 3,155 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
$68.1K $21.60/SF
− Vacancy
−$9.7K −$3.09/SF
EGI
$58.4K $18.51/SF
− OpEx
−$14.6K −$4.63/SF
NOI
$43.8K $13.88/SF
Area
Washtenaw County, MI
Vacancy
14.30%
Lease Rate
$21.60 /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%
$876,040
Cap Rate 7%
$625,743
Cap Rate 9%
$486,689
Alternative Uses
Best Use
Specialty Retail
$625.7K
$547.5K – $730.0K
NOI $43,802 @ 7.0% cap · market cap 6.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$927.0K
$811.2K – $1.08M
NOI $64,892 @ 7.0% cap · market cap 9.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48158, MI
7,362
Population
3,348
Households
2.2
Avg Household Size
49
Median Age
38%
College-Educated
97%
High-School Grad
95.1 sq mi
ZIP Area
77
Density / Sq Mi
$97,692
Median Household Income
$56,926
Median Earnings
$900
Median Rent
$298,100
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 - Restaurant building rebuilt and expanded in 2003, located at a busy intersection and bordering the River Raisin.
Where is this conventional restaurant located?
The property is located at 20400 E Austin Road Manchester, MI.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: 3,155 SF restaurant building rebuilt and expanded in 2003; Sits on 1.65 acres bordering the River Raisin; Located on the southeast edge of Manchester city limits at the intersection of M‑52 and Austin Road
