Building Details

Year Built 1950

Listing Agency: Swisher Commercial

Listed By: Charles Koenn · License #6506040186 Show Phone

Source: Katie-k

Added: Sep 26 Last Checked: Sep 26 at 2:43PM

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Investment Insights

Based on property information with market context.

This restaurant property includes a 3,155-square-foot building on 1.65 acres, with frontage along the River Raisin. The building was rebuilt and expanded in 2003; the recorded year built is 1950. Kitchen features include a walk-in cooler and freezer, and the sale includes equipment and licenses. Site improvements include paved parking and a full backup generator.

The property sits at the intersection of M-52 and Austin Road, on the southeast edge of Manchester city limits. Utilities include city sewer, well water, natural gas service and MEC fiber-optic internet.

Key Highlights

• 3,155‑square‑foot restaurant on 1.65 acres with River Raisin frontage
• Kitchen equipment and licenses included in the sale
• Full backup generator and paved parking lot

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 (±1% cap)

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 (±1% cap)

NOI $64,892 @ 7.0% cap · market cap 9.28%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Hungry Wolf Restaurant

Suggested Use

Top Pick Building Supply Big Box & Wholesale Store Restaurant HVAC Service Real Estate Agency Kitchen & Bath Showroom

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

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

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Kitchen equipment and licenses are included, with refrigeration, paved parking and backup power on site.

Where is this conventional restaurant located?

The property is located at 20400 E Austin Rd 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‑square‑foot restaurant on 1.65 acres with River Raisin frontage; Kitchen equipment and licenses included in the sale; Full backup generator and paved parking lot