Restaurant Building With Dual
For Sale
$324,900
287 E Main Street, Benton Harbor, MI 49022
Commercial building with frontage along two downtown streets and a former drive-in restaurant configuration.
Property Size1,945 SF
Price / SF$167.04
Days on Market185
Property Features for 287 E Main Street
General Information
Standard status
Active
Size
1,945 SF
Total Parking Spaces
28
Property subtype
Commercial
Lease Term
Cash, Conventional
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$6,913
Building Details
Building Size
1,945 SF
Year Built
1964
Buildings
1
Units
1
Listing Agency:
Keller Williams Realty Swm
(269) 449-4198
Listed By:
Dan Morissette · License #6501295859
(269) 449-4198
Source:
Sabudarealty
Added: Feb 27
Changed: Aug 30
Last Checked: Aug 30 at 5:45PM
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 Swm
Investment Insights
Based on property information with market context.
This 1,945-square-foot commercial restaurant building was constructed in 1964 and previously operated as the Roxy Drive-In Restaurant. The property occupies a prominent corner position with 200 feet of frontage on Main Street and 100 feet along 4th Street.
Located in the Arts District of downtown Benton Harbor, the building is positioned near local amenities and attractions. Its established restaurant use and two-street frontage provide the primary physical characteristics for evaluating the property.
Located in the Arts District of downtown Benton Harbor, the building is positioned near local amenities and attractions. Its established restaurant use and two-street frontage provide the primary physical characteristics for evaluating the property.
Key Highlights
- 1,945‑square‑foot commercial restaurant building
- 200 feet of frontage on Main Street
- 100 feet of frontage on 4th Street
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
$21,633
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
6.66%
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%
$432,660
$432.7K
Cap Rate 7%
$309,043
$309.0K
Cap Rate 9%
$240,367
$240.4K
Market Conditions
NOI Build-Up for 1,945 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
$30.1K $15.48/SF
− Vacancy
−$1.3K −$0.65/SF
EGI
$28.8K $14.83/SF
− OpEx
−$7.2K −$3.71/SF
NOI
$21.6K $11.12/SF
Area
Berrien 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%
$432,660
Cap Rate 7%
$309,043
Cap Rate 9%
$240,367
Alternative Uses
Best Use
Specialty Retail
$309.0K
$270.4K – $360.6K
NOI $21,633 @ 7.0% cap · market cap 6.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$409.3K
$358.1K – $477.5K
NOI $28,650 @ 7.0% cap · market cap 8.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
402
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49022, MI
30,143
Population
14,484
Households
2.1
Avg Household Size
39
Median Age
18%
College-Educated
85%
High-School Grad
67.3 sq mi
ZIP Area
448
Density / Sq Mi
$39,859
Median Household Income
$29,530
Median Earnings
$797
Median Rent
$140,500
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 - Commercial building with frontage along two downtown streets and a former drive-in restaurant configuration.
Where is this conventional restaurant located?
The property is located at 287 E Main Street Benton Harbor, MI.
What is the asking price?
The asking price for this property is $324,900.
What are key features of this property?
This property features: 1,945‑square‑foot commercial restaurant building; 200 feet of frontage on Main Street; 100 feet of frontage on 4th Street
