Established Restaurant Landmark For
For Sale
$699,000
2904 45th St, Highland, IN 46322
Iconic Highland restaurant with loyal customer base since 1947.
Property Size4,144 SF
Days on Market144
Property Features for 2904 45th St
General Information
Standard status
Active
Size
4,144 SF
Property subtype
Retail
Building Details
Building Size
4,144 SF
Year Built
1947
Listing Agency:
Latitude Commercial
(219) 545-4328
Listed By:
Brett McDermott, CCIM · License #IN #RB14050416
(219) 545-4328
Source:
Latitudeco
Added: Apr 8
Changed: Aug 22
Last Checked: Aug 29 at 7:41AM
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 Latitude Commercial
Investment Insights
Based on property information with market context.
The Town Club Restaurant & Lounge, a dining landmark established in 1947, is available for purchase. Situated on the heavily traveled 45th Street corridor in Highland, Indiana, this restaurant has been a community staple for many years. The Town Club is known for its signature hand-cut steaks and popular martinis, offering a rich legacy and loyal customer base. The sale includes a 3-way Liquor license. Additional revenue potential exists by leasing the upstairs apartment. According to Placer AI, the restaurant is in the top 75 percentile for total restaurant visits in Indiana.
Key Highlights
- Established restaurant landmark serving Highland, Indiana since 1947.
- Located on heavily traveled 45th Street.
- Strong, loyal customer base.
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
$39,674
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
5.68%
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%
$793,480
$793.5K
Cap Rate 7%
$566,771
$566.8K
Cap Rate 9%
$440,822
$440.8K
Market Conditions
NOI Build-Up for 4,144 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
$57.2K $13.80/SF
− Vacancy
−$4.3K −$1.04/SF
EGI
$52.9K $12.77/SF
− OpEx
−$13.2K −$3.19/SF
NOI
$39.7K $9.57/SF
Area
Vermillion County, IN
Vacancy
7.50%
Lease Rate
$13.80 /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%
$793,480
Cap Rate 7%
$566,771
Cap Rate 9%
$440,822
Alternative Uses
Best Use
Specialty Retail
$566.8K
$495.9K – $661.2K
NOI $39,674 @ 7.0% cap · market cap 5.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$733.1K
$641.5K – $855.3K
NOI $51,319 @ 7.0% cap · market cap 7.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
2k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Old National Bank
Shops & Services
1,936 visits/mo
0.4 miles
Auto Value
Shops & Services
323 visits/mo
0.5 miles
Demographics for 46322, IN
23,984
Population
10,791
Households
2.2
Avg Household Size
43
Median Age
30%
College-Educated
93%
High-School Grad
6.9 sq mi
ZIP Area
3,476
Density / Sq Mi
$76,219
Median Household Income
$47,458
Median Earnings
$1,202
Median Rent
$219,500
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 - Iconic Highland restaurant with loyal customer base since 1947.
Where is this conventional restaurant located?
The property is located at 2904 45th St Highland, IN.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Established restaurant landmark serving Highland, Indiana since 1947.; Located on heavily traveled 45th Street.; Strong, loyal customer base.
