Commercial Kitchen in Historic
For Sale
$599,000
3009 S State Road, Harbor Springs, MI 49740
Two-level building includes a fully equipped kitchen, bar area, storage, laundry, and baths.
Property Size1,600 SF
Price / SF$374.38
Days on Market104
Property Features for 3009 S State Road
General Information
Standard status
Active
Size
1,600 SF
Property subtype
Commercial
Amenities
commercial kitchen
full bath
laundry facilities
storage space
hardwood floors
bar area
original chalkboard
half bath
walk-in closet
Building Details
Buildings
1
Stories
2
Listing Agency:
Harbor Sotheby's International Rlty - Harbor Sprgs (OFFICE
(231) 838-4108
Listed By:
Kristin McDonald
(231) 838-4108
Source:
Harborsir
Added: May 20
Changed: Aug 30
Last Checked: Aug 30 at 5:42PM
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 Harbor Sotheby's International Rlty - Harbor Sprgs (OFFICE
Investment Insights
Based on property information with market context.
This two-level commercial kitchen property occupies a historic schoolhouse at 3009 S State Road in Harbor Springs. The lower floor contains a fully equipped commercial kitchen, full bathroom, laundry facilities, and substantial storage. The upper level features hardwood flooring, a bar area, original chalkboard, half bathroom, and a walk-in closet plumbed for an additional half bathroom. The building has supported a catering operation for more than 30 years.
Recent improvements include a new roof and masonry repairs. The property is positioned a few miles north of Harbor Springs along the route toward Good Hart and Cross Village. Its existing layout also includes space that could accommodate an art studio, shop, café, restaurant, or personal office, as stated in the property information.
Recent improvements include a new roof and masonry repairs. The property is positioned a few miles north of Harbor Springs along the route toward Good Hart and Cross Village. Its existing layout also includes space that could accommodate an art studio, shop, café, restaurant, or personal office, as stated in the property information.
Key Highlights
- Fully equipped commercial kitchen with modern amenities
- Two‑level historic schoolhouse with hardwood floors and original chalkboard
- Lower level includes full bath, laundry facilities, and generous storage
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
$20,874
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
3.48%
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%
$417,480
$417.5K
Cap Rate 7%
$298,200
$298.2K
Cap Rate 9%
$231,933
$231.9K
Market Conditions
NOI Build-Up for 1,600 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
$32.1K $20.04/SF
− Vacancy
−$2.2K −$1.40/SF
EGI
$29.8K $18.64/SF
− OpEx
−$8.9K −$5.59/SF
NOI
$20.9K $13.05/SF
Area
Emmet County, MI
Vacancy
7.00%
Lease Rate
$20.04 /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%
$417,480
Cap Rate 7%
$298,200
Cap Rate 9%
$231,933
Alternative Uses
Best Use
Industrial
$298.2K
$260.9K – $347.9K
NOI $20,874 @ 7.0% cap · market cap 3.48%
Second Best
Specialty Retail
$193.4K
$169.2K – $225.6K
NOI $13,536 @ 7.0% cap · market cap 2.26%
Theoretical Best
Warehouse
$362.1K
$316.8K – $422.5K
NOI $25,347 @ 7.0% cap · market cap 4.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
13
Businesses Nearby
Explore this area
Business Placement
Demographics for 49740, MI
7,511
Population
6,057
Households
1.2
Avg Household Size
55
Median Age
46%
College-Educated
97%
High-School Grad
124.9 sq mi
ZIP Area
60
Density / Sq Mi
$85,230
Median Household Income
$38,820
Median Earnings
$997
Median Rent
$332,600
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?
Commercial kitchen - Two-level building includes a fully equipped kitchen, bar area, storage, laundry, and baths.
Where is this commercial kitchen located?
The property is located at 3009 S State Road Harbor Springs, MI.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Fully equipped commercial kitchen with modern amenities; Two‑level historic schoolhouse with hardwood floors and original chalkboard; Lower level includes full bath, laundry facilities, and generous storage
