Restaurant Condo with Commercial
For Sale
$315,000
265 Saginaw Street, Hemlock, MI 48626
The layout includes dining, bar, event, and outdoor seating areas.
Property Size3,845 SF
Price / SF$81.92
Days on Market36
Property Features for 265 Saginaw Street
General Information
Standard status
Active
Size
3,845 SF
Property subtype
General Commercial
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
Yes
Taxes and HOA fees
Annual Taxes
$5,726
Amenities
3
Building Details
Year Built
2000
Listing Agency:
Berkshire Hathaway HomeServices
(989) 790-9292
Listed By:
Abby Enszer
Source:
Xome
Added: Jul 17
Changed: Aug 20
Last Checked: Aug 20 at 4:19AM
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 Berkshire Hathaway HomeServices
Investment Insights
Based on property information with market context.
This restaurant condominium occupies 3,845 square feet within a strip mall and was built in 2000. The interior includes a commercial kitchen, bar, dining room with seating for 88, restrooms, a private office, and a separate entertainment area suited to music, DJs, or private events. A patio and deck extend the usable seating area outdoors.
The sale includes the building, a Class C liquor license, and all equipment. The configuration supports restaurant and bar operations, with additional functionality for banquet or event use and other commercial concepts identified in the property information. The combination of food-service infrastructure, customer seating, and dedicated entertainment space provides a defined operating layout for an owner-user or investor.
The sale includes the building, a Class C liquor license, and all equipment. The configuration supports restaurant and bar operations, with additional functionality for banquet or event use and other commercial concepts identified in the property information. The combination of food-service infrastructure, customer seating, and dedicated entertainment space provides a defined operating layout for an owner-user or investor.
Key Highlights
- 3,845‑square‑foot restaurant condominium in a strip mall
- Commercial kitchen, bar, dining room, restrooms, and private office
- Dining room seats 88, with additional outdoor seating
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
$22,528
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
7.15%
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%
$450,560
$450.6K
Cap Rate 7%
$321,829
$321.8K
Cap Rate 9%
$250,311
$250.3K
Market Conditions
NOI Build-Up for 3,845 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
$34.6K $9.00/SF
− Vacancy
−$2.4K −$0.63/SF
EGI
$32.2K $8.37/SF
− OpEx
−$9.7K −$2.51/SF
NOI
$22.5K $5.86/SF
Area
St. Clair County, MI
Vacancy
7.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$450,560
Cap Rate 7%
$321,829
Cap Rate 9%
$250,311
Alternative Uses
Best Use
Specialty Retail
$760.8K
$665.7K – $887.6K
NOI $53,254 @ 7.0% cap · market cap 16.91%
Second Best
Industrial
$321.8K
$281.6K – $375.5K
NOI $22,528 @ 7.0% cap · market cap 7.15%
Theoretical Best
Multifamily LT 5
$2.89M
$2.53M – $3.37M
NOI $202,338 @ 7.0% cap · market cap 64.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
128
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48626, MI
5,962
Population
2,307
Households
2.6
Avg Household Size
45
Median Age
31%
College-Educated
97%
High-School Grad
65.5 sq mi
ZIP Area
91
Density / Sq Mi
$81,961
Median Household Income
$40,756
Median Earnings
$935
Median Rent
$208,600
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 - The layout includes dining, bar, event, and outdoor seating areas.
Where is this conventional restaurant located?
The property is located at 265 Saginaw Street Hemlock, MI.
What is the asking price?
The asking price for this property is $315,000.
What are key features of this property?
This property features: 3,845‑square‑foot restaurant condominium in a strip mall; Commercial kitchen, bar, dining room, restrooms, and private office; Dining room seats 88, with additional outdoor seating
