Waterfront Restaurant and
New
For Sale
$1,950,000
2542 8 1/4 Ave, Chetek, WI 54728
Year-round hospitality property with lakefront dining, entertainment areas, guest accommodations, and an extensive dock system.
Property Size5,768 SF
Price / SF$338.07
Days on Market1
Property Features for 2542 8 1/4 Ave
General Information
Standard status
Active
Size
5,768 SF
Additional Details
Business Included
Yes
Patio
Yes
Amenities
seasonal Tiki bar
stage
extensive dock system
Building Details
Year Built
1979
Listing Agency:
Keller Williams Realty Diversified
Listed By:
Joshua R Amys · License #85884-94
(715) 642-0567
Source:
Searchhousesnow
Added: Sep 19
Last Checked: Sep 19 at 9:26AM
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 Keller Williams Realty Diversified
Investment Insights
Based on property information with market context.
This established year-round restaurant and bar at 2542 8 1/4 Ave in Chetek, WI, brings together five parcels and a broad mix of hospitality improvements. The property includes an updated commercial kitchen, multiple indoor bar, dining, and entertainment areas, plus an upper seating loft. Outdoor amenities include a seasonal Tiki bar, lakefront patio, stage, substantial seating, and an extensive dock system along the Chetek Chain of Lakes.
Three guest accommodations expand the offering beyond the restaurant: one adjacent four-season cabin and two waterfront lodging units. A neighboring building currently used for storage provides additional interior space, while two separate parcels support employee, guest, and overflow parking. Built in 1979, the property combines restaurant operations, lodging, waterfront recreation, and event-oriented gathering areas in one assembled holding.
Three guest accommodations expand the offering beyond the restaurant: one adjacent four-season cabin and two waterfront lodging units. A neighboring building currently used for storage provides additional interior space, while two separate parcels support employee, guest, and overflow parking. Built in 1979, the property combines restaurant operations, lodging, waterfront recreation, and event-oriented gathering areas in one assembled holding.
Key Highlights
- Five parcels assembled for restaurant, lodging, storage, and parking uses
- Year‑round restaurant and bar with updated commercial kitchen and upper seating loft
- Lakefront patio, seasonal Tiki bar, stage, extensive seating, and dock system
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
$79,598
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
4.08%
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%
$1,591,960
$1.6M
Cap Rate 7%
$1,137,114
$1.1M
Cap Rate 9%
$884,422
$884.4K
Market Conditions
NOI Build-Up for 5,768 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
$138.4K $24.00/SF
− Vacancy
−$11.1K −$1.92/SF
EGI
$127.4K $22.08/SF
− OpEx
−$47.8K −$8.28/SF
NOI
$79.6K $13.80/SF
Area
Barron County, WI
Vacancy
8.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,591,960
Cap Rate 7%
$1,137,114
Cap Rate 9%
$884,422
Alternative Uses
Best Use
Mixed Use
$1.14M
$995.0K – $1.33M
NOI $79,598 @ 7.0% cap · market cap 4.08%
Second Best
Specialty Retail
$722.3K
$632.0K – $842.7K
NOI $50,562 @ 7.0% cap · market cap 2.59%
Theoretical Best
Warehouse
$4.63M
$4.06M – $5.41M
NOI $324,410 @ 7.0% cap · market cap 16.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 54728, WI
6,166
Population
3,491
Households
1.8
Avg Household Size
50
Median Age
22%
College-Educated
96%
High-School Grad
125.6 sq mi
ZIP Area
49
Density / Sq Mi
$71,538
Median Household Income
$40,310
Median Earnings
$897
Median Rent
$214,200
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 - Year-round hospitality property with lakefront dining, entertainment areas, guest accommodations, and an extensive dock system.
Where is this conventional restaurant located?
The property is located at 2542 8 1/4 Ave Chetek, WI.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: Five parcels assembled for restaurant, lodging, storage, and parking uses; Year‑round restaurant and bar with updated commercial kitchen and upper seating loft; Lakefront patio, seasonal Tiki bar, stage, extensive seating, and dock system
