Updated Restaurant with Front
New
For Sale
$279,000
222 S Main St, Reading, MI 49274
Established pizza and ice cream operation with recent equipment and exterior improvements.
Property Size1,150 SF
Price / SF$242.61
Days on Market2
Property Features for 222 S Main St
General Information
Standard status
Active
Size
1,150 SF
Additional Details
Business Included
Yes
Patio
Yes
Building Details
Year Built
1930
Buildings
1
Listing Agency:
Spieth & Satow Auctions & Real Estate
Listed By:
Darin W Spieth · License #6501348697
(517) 398-6060
Source:
Katie-k
Added: Sep 2
Changed: Sep 3
Last Checked: Sep 3 at 2:06AM
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 1930-built restaurant property in Reading, Michigan, has supported a pizza and ice cream business for close to 50 years. Recent improvements include two new coolers, new booths, exterior residing, and a new patio at the front of the building.
The property is located at 222 S Main St and presents an operating restaurant format with established service history and updated customer-facing features. The existing improvements provide a practical foundation for continued restaurant use.
The property is located at 222 S Main St and presents an operating restaurant format with established service history and updated customer-facing features. The existing improvements provide a practical foundation for continued restaurant use.
Key Highlights
- Restaurant operation serving pizza and ice cream for close to 50 years
- Two new coolers included
- New booths added
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
110
Businesses Nearby
8k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
4,909 visits/mo
0.3 miles
Dollar Tree
Shops & Services
3,562 visits/mo
0.3 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 - Established pizza and ice cream operation with recent equipment and exterior improvements.
Where is this conventional restaurant located?
The property is located at 222 S Main St 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: Restaurant operation serving pizza and ice cream for close to 50 years; Two new coolers included; New booths added
