Turn-Key Restaurant with River
For Sale
$699,000
20400 E Austin Road, Manchester, MI 48158
COMMERCIAL - Manchester, MI
Property Size3,155 SF
Lot Size1.65 Acres
Price / SF$221.55
Days on Market49
Property Features for 20400 E Austin Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
CC
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Elementary school district
Manchester
Middle school district
Manchester
High school district
Manchester
Standard status
Active
APN
P-16-01-400-005
Size
3,155 SF
Lot size
1.65 Acres
Taxes and HOA fees
Tax Year
2026
Tax Description
OLD SID - P 16-001-013-00 MA 1-10B THE W 180 FT OF THE W 1/2 OFSE 1/4 LYING BETWEEN THE RIVER RAISIN AND THE HWY. SEC 1
Tax Annual Amount
6665
Legal Description
OLD SID - P 16-001-013-00 MA 1-10B THE W 180 FT OF THE W 1/2 OFSE 1/4 LYING BETWEEN THE RIVER RAISIN AND THE HWY. SEC 1
Utilities
Heating system
Forced Air
Cooling system
Central Air
Amenities
Well-maintained paved parking lot
Full back-up generator
City sewer with well water supply
Natural gas utility service
MEC fiber optic internet connection
Building Details
Year built
1950
Number of units
1
Listing Agency:
Swisher Commercial
(734) 663-0501
Listed By:
Charles Koenn · License #6506040186
(734) 926-0230
Added: Jul 9
Changed: Aug 4
Last Checked: Aug 26 at 2:06AM
MLS# 26034831
Copyright © 2026 Michigan Regional Information Center, LLC. 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 turn-key restaurant opportunity is housed in a 3,155 SF building that was rebuilt and expanded in 2003. The property is described as well-established and impeccably maintained, and it includes all equipment and licenses. Operational support features include a full back-up generator, a walk-in cooler and freezer in the kitchen, and MEC fiber optic internet service. The site is supported by city sewer with well water supply and natural gas utility service, and it includes a well-maintained paved parking lot.
Located on the southeast edge of Manchester city limits, the restaurant sits along the River Raisin with river frontage on a 1.65-acre lot. The property is positioned at the busy intersection of M-52 and Austin Road, providing convenient access for customers.
For buyers and operators seeking a restaurant they can step into with existing equipment and license documentation included, this offering may fit well. Showings are by appointment only, and buyers must sign a confidentiality agreement; staff should not be approached. The current owner is prepared to retire, creating a transfer opportunity for a new operator or investor.
Located on the southeast edge of Manchester city limits, the restaurant sits along the River Raisin with river frontage on a 1.65-acre lot. The property is positioned at the busy intersection of M-52 and Austin Road, providing convenient access for customers.
For buyers and operators seeking a restaurant they can step into with existing equipment and license documentation included, this offering may fit well. Showings are by appointment only, and buyers must sign a confidentiality agreement; staff should not be approached. The current owner is prepared to retire, creating a transfer opportunity for a new operator or investor.
Key Highlights
- 3,155 SF restaurant building rebuilt and expanded in 2003
- 1.65‑acre lot bordering the River Raisin with River Raisin frontage
- Full back‑up generator plus walk‑in cooler and freezer in the kitchen
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
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Utilities to site
Yes
Liquor license
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 - Impeccably maintained restaurant building with paved parking, generator backup, and kitchen refrigeration on River Raisin frontage.
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; 1.65‑acre lot bordering the River Raisin with River Raisin frontage; Full back‑up generator plus walk‑in cooler and freezer in the kitchen
