Freestanding
For Sale
Contact for pricing
2727 S BUSINESS DR, Sheboygan, WI 53081
Freestanding restaurant currently leased through December 31, 2027, with potential for continued restaurant use or owner occupancy.
Property Size2,022 SF
Price / SF$420.38
Days on Market10
Property Features for 2727 S BUSINESS DR
General Information
Standard status
Active
Size
2,022 SF
Property subtype
Retail
Net Operating Income
$63,142
Additional Details
Traffic Count
19,600 vehicles/day
Building Details
Year Built
1977
Stories
1
Units
1
Listing Agency:
NAI Pfefferle
(920) 783-6330
Listed By:
Dane Checolinski · License #WI 84402-94
Source:
Crexi
Added: Aug 21
Changed: Aug 29
Last Checked: Aug 29 at 1:59PM
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 NAI Pfefferle
Investment Insights
Based on property information with market context.
Built in 1977, this 2,022-square-foot freestanding restaurant occupies an outlot along S. Business Drive in Sheboygan. The property was formerly operated as a Pizza Hut and retains a recognizable restaurant identity for continued food-service use or repositioning. It is currently leased through December 31, 2027, while the existing tenant is willing to consider an earlier lease termination for an owner-user.
The site benefits from prominent exposure along S. Business Drive, with reported traffic of 19,600 vehicles per day based on ADT. Its freestanding configuration and established restaurant setting provide a defined physical platform for an investor or an operator evaluating future occupancy.
The site benefits from prominent exposure along S. Business Drive, with reported traffic of 19,600 vehicles per day based on ADT. Its freestanding configuration and established restaurant setting provide a defined physical platform for an investor or an operator evaluating future occupancy.
Key Highlights
- 2,022 SF freestanding restaurant building
- Leased through December 31, 2027
- Existing tenant willing to consider early lease termination
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
$26,587
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
3.13%
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%
$531,740
$531.7K
Cap Rate 7%
$379,814
$379.8K
Cap Rate 9%
$295,411
$295.4K
Market Conditions
NOI Build-Up for 2,022 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
$36.4K $18.00/SF
− Vacancy
−$946 −$0.47/SF
EGI
$35.4K $17.53/SF
− OpEx
−$8.9K −$4.38/SF
NOI
$26.6K $13.15/SF
Area
Sheboygan County, WI
Vacancy
2.60%
Lease Rate
$18.00 /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%
$531,740
Cap Rate 7%
$379,814
Cap Rate 9%
$295,411
Alternative Uses
Best Use
Specialty Retail
$379.8K
$332.3K – $443.1K
NOI $26,587 @ 7.0% cap · market cap 3.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$440.7K
$385.6K – $514.1K
NOI $30,847 @ 7.0% cap · market cap 3.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
19,600 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
417
Businesses Nearby
172k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 56%
Shops & Services 25%
Groceries 14%
Home Improvements & Furnishings 2%
Piggly Wiggly
Groceries
24,825 visits/mo
0.3 miles
McDonald's
Dining
21,934 visits/mo
0.3 miles
Kwik Trip
Shops & Services
21,386 visits/mo
0.1 miles
Culver's
Dining
21,086 visits/mo
0.4 miles
Dollar Tree
Shops & Services
10,051 visits/mo
0.0 miles
Demographics for 53081, WI
43,465
Population
20,121
Households
2.2
Avg Household Size
38
Median Age
22%
College-Educated
90%
High-School Grad
23.3 sq mi
ZIP Area
1,865
Density / Sq Mi
$62,401
Median Household Income
$42,329
Median Earnings
$866
Median Rent
$169,700
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 - Freestanding restaurant currently leased through December 31, 2027, with potential for continued restaurant use or owner occupancy.
Where is this conventional restaurant located?
The property is located at 2727 S BUSINESS DR Sheboygan, WI.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 2,022 SF freestanding restaurant building; Leased through December 31, 2027; Existing tenant willing to consider early lease termination
