Ice Cream Restaurant
New
For Sale
$125,000
209 E Railway St, Coleman, MI 48618
Commercial building with an ice cream and restaurant configuration in a small-town setting.
Property Size702 SF
Days on Market2
Property Features for 209 E Railway St
General Information
Standard status
Active
Size
702 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$724
Building Details
Building Size
702 SF
Year Built
1972
Listed By:
Alicia Lewis
(734) 459-6222
Source:
Elliman
Added: Sep 1
Last Checked: Sep 1 at 9:42PM
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 Alicia Lewis
Investment Insights
Based on property information with market context.
Located at 209 E Railway St in Coleman, Michigan, this commercial building has been used as an ice cream shop and restaurant. The property was built in 1972 and offers an existing food-service-oriented configuration for continued restaurant use or a related concept.
Coleman is characterized by limited pedestrian and bicycle activity, with a Walk Score of 3 and a Bike Score of 29. The property’s address places it within the community’s established commercial setting.
Coleman is characterized by limited pedestrian and bicycle activity, with a Walk Score of 3 and a Bike Score of 29. The property’s address places it within the community’s established commercial setting.
Key Highlights
- Existing ice cream shop and restaurant configuration
- 1972 construction
- Located at 209 E Railway St, Coleman, MI 48618
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
$7,025
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
5.62%
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%
$140,500
$140.5K
Cap Rate 7%
$100,357
$100.4K
Cap Rate 9%
$78,056
$78.1K
Market Conditions
NOI Build-Up for 702 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
$10.9K $15.48/SF
− Vacancy
−$1.5K −$2.14/SF
EGI
$9.4K $13.34/SF
− OpEx
−$2.3K −$3.34/SF
NOI
$7.0K $10.01/SF
Area
Midland County, MI
Vacancy
13.80%
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%
$140,500
Cap Rate 7%
$100,357
Cap Rate 9%
$78,056
Alternative Uses
Best Use
Specialty Retail
$100.4K
$87.8K – $117.1K
NOI $7,025 @ 7.0% cap · market cap 5.62%
Second Best
Retail
$69.2K
$60.5K – $80.7K
NOI $4,841 @ 7.0% cap · market cap 3.87%
Theoretical Best
Flex RnD
$126.7K
$110.9K – $147.8K
NOI $8,869 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
131
Businesses Nearby
9k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Sunoco
Shops & Services
4,653 visits/mo
0.1 miles
Dollar General
Shops & Services
4,213 visits/mo
0.3 miles
Demographics for 48618, MI
5,299
Population
2,443
Households
2.2
Avg Household Size
45
Median Age
13%
College-Educated
92%
High-School Grad
102.5 sq mi
ZIP Area
52
Density / Sq Mi
$58,523
Median Household Income
$37,793
Median Earnings
$760
Median Rent
$120,200
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 - Commercial building with an ice cream and restaurant configuration in a small-town setting.
Where is this conventional restaurant located?
The property is located at 209 E Railway St Coleman, MI.
What is the asking price?
The asking price for this property is $125,000.
What are key features of this property?
This property features: Existing ice cream shop and restaurant configuration; 1972 construction; Located at 209 E Railway St, Coleman, MI 48618
