Turnkey Restaurant
For Sale
Contact for pricing
222 S Main Street, Reading, MI 49274
For sale restaurant building with recent interior and exterior upgrades, designed for a pizza and ice cream operation.
Property Size1,150 SF
Price / SF$242.61
Days on Market55
Property Features for 222 S Main Street
General Information
Standard status
Active
Size
1,150 SF
Property subtype
Business for Sale, Retail
Additional Details
Business Included
Yes
Building Details
Year Built
1930
Listing Agency:
Spieth & Satow Auctions & Real Estate
(517) 398-6060
Listed By:
Darin Spieth · License #6501348697
Source:
Crexi
Added: Jun 15
Changed: Jul 10
Last Checked: Aug 8 at 1:50PM
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 Spieth & Satow Auctions & Real Estate
Investment Insights
Based on property information with market context.
This for-sale restaurant building is set up for a pizza and ice cream concept and presents as a clean, turnkey operation. The property includes dining area improvements such as new booths and two new coolers, along with exterior updates including fresh resided exterior and a new front patio. It has been serving customers for close to 50 years, reflecting an established, operational setup.
Located at 222 S Main Street in Reading, MI 49274, the building’s address on Main Street supports straightforward customer access. The presence of a front patio provides an additional customer-facing outdoor area aligned with casual dining and treat service.
For buyers seeking to own and operate an established restaurant without rebuilding from scratch, the recent equipment and visible upgrades are aimed at immediate use. The existing configuration for booths, cooler service, and a front patio can support day-to-day restaurant operations, while the property’s long operating history may appeal to owner-operators and operators looking for a ready-to-run platform. Please note that specific business financials, equipment lists beyond the described upgrades, and lease or zoning details are not provided with this listing information.
Located at 222 S Main Street in Reading, MI 49274, the building’s address on Main Street supports straightforward customer access. The presence of a front patio provides an additional customer-facing outdoor area aligned with casual dining and treat service.
For buyers seeking to own and operate an established restaurant without rebuilding from scratch, the recent equipment and visible upgrades are aimed at immediate use. The existing configuration for booths, cooler service, and a front patio can support day-to-day restaurant operations, while the property’s long operating history may appeal to owner-operators and operators looking for a ready-to-run platform. Please note that specific business financials, equipment lists beyond the described upgrades, and lease or zoning details are not provided with this listing information.
Key Highlights
- Year built 1930
- Operating restaurant built for a pizza and ice cream concept
- Upgrades include two new coolers
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
$12,791
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
4.58%
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%
$255,820
$255.8K
Cap Rate 7%
$182,729
$182.7K
Cap Rate 9%
$142,122
$142.1K
Market Conditions
NOI Build-Up for 1,150 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
$17.8K $15.48/SF
− Vacancy
−$748 −$0.65/SF
EGI
$17.1K $14.83/SF
− OpEx
−$4.3K −$3.71/SF
NOI
$12.8K $11.12/SF
Area
Hillsdale 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%
$255,820
Cap Rate 7%
$182,729
Cap Rate 9%
$142,122
Alternative Uses
Best Use
Specialty Retail
$182.7K
$159.9K – $213.2K
NOI $12,791 @ 7.0% cap · market cap 4.58%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
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
108
Businesses Nearby
8k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Marathon Petroleum
Shops & Services
4,991 visits/mo
0.2 miles
Citgo
Shops & Services
3,472 visits/mo
0.2 miles
Demographics for 49274, MI
3,699
Population
1,956
Households
1.9
Avg Household Size
41
Median Age
21%
College-Educated
88%
High-School Grad
61.7 sq mi
ZIP Area
60
Density / Sq Mi
$56,125
Median Household Income
$40,020
Median Earnings
$742
Median Rent
$160,800
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 - For sale restaurant building with recent interior and exterior upgrades, designed for a pizza and ice cream operation.
Where is this conventional restaurant located?
The property is located at 222 S Main Street Reading, MI.
What is the asking price?
The asking price for this property is $279,000.
What are key features of this property?
This property features: Year built 1930; Operating restaurant built for a pizza and ice cream concept; Upgrades include two new coolers
