Turnkey Restaurant & Rental
For Sale
$750,000
305 Iron Street, Negaunee, MI 49866
Established restaurant and bar with five rental units in Negaunee.
Property Size5,356 SF
Price / SF$140.03
Days on Market338
Property Features for 305 Iron Street
General Information
Standard status
Active
Size
5,356 SF
Property subtype
Lodging and Hospitality
Building Details
Building Size
5,356 SF
Listing Agency:
RE/MAX
(906) 225-1136
Listed By:
Bradley Argall · License #6506048978
Source:
Remaxcommercial
Added: Sep 18, 2025
Changed: Aug 8
Last Checked: Aug 21 at 3:51AM
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 RE/MAX
Investment Insights
Based on property information with market context.
Located in downtown Negaunee, this property features Jackson’s Pit, a fully operational restaurant and bar. The business includes a Class C liquor license, Sunday Sales, and an additional bar license suitable for outdoor events. The property is situated in the City of Negaunee’s Social District, benefiting from increased visibility and foot traffic. The second floor contains five residential rental units, providing passive income. The property is a mixed-use building with both commercial and residential components. The building size is 5356 square feet. The property is suitable for entrepreneurs looking to own a restaurant or investors seeking a mixed-use property.
Key Highlights
- Turnkey restaurant and bar (Jackson’s Pit) with established business and loyal customer base.
- Includes valuable Class C liquor license, Sunday Sales permit, and additional bar license for outdoor events.
- Located in Negaunee's revitalized downtown Social District, benefiting from high visibility and foot traffic.
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
$65,731
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
8.76%
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%
$1,314,620
$1.3M
Cap Rate 7%
$939,014
$939.0K
Cap Rate 9%
$730,344
$730.3K
Market Conditions
NOI Build-Up for 5,356 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
$96.4K $18.00/SF
− Vacancy
−$2.5K −$0.47/SF
EGI
$93.9K $17.53/SF
− OpEx
−$28.2K −$5.26/SF
NOI
$65.7K $12.27/SF
Area
Marquette County, MI
Vacancy
2.60%
Lease Rate
$18.00 /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%
$1,314,620
Cap Rate 7%
$939,014
Cap Rate 9%
$730,344
Alternative Uses
Best Use
Specialty Retail
$1.06M
$927.3K – $1.24M
NOI $74,182 @ 7.0% cap · market cap 9.89%
Second Best
Retail
$939.0K
$821.6K – $1.10M
NOI $65,731 @ 7.0% cap · market cap 8.76%
Theoretical Best
Office A
$1.58M
$1.38M – $1.84M
NOI $110,419 @ 7.0% cap · market cap 14.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
184
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49866, MI
8,259
Population
3,723
Households
2.2
Avg Household Size
41
Median Age
34%
College-Educated
96%
High-School Grad
201.3 sq mi
ZIP Area
41
Density / Sq Mi
$83,433
Median Household Income
$47,467
Median Earnings
$900
Median Rent
$191,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Tino's Bar and Pizza — 220 Iron St, Negaunee, MI 49866
- Smarty's Saloon — 212 Iron St, Negaunee, MI 49866
- Barr's Bar — 511 Iron St, Negaunee, MI 49866
- Jackson's Pit Gourmet Grill & Bar — 305 Iron St, Negaunee, MI 49866
- Upper Peninsula Brewing Company — 342 Rail St, Negaunee, MI 49866
Frequently Asked Questions
What type of property is this?
Bar & Pub - Established restaurant and bar with five rental units in Negaunee.
Where is this bar & pub located?
The property is located at 305 Iron Street Negaunee, MI.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Turnkey restaurant and bar (Jackson’s Pit) with established business and loyal customer base.; Includes valuable Class C liquor license, Sunday Sales permit, and additional bar license for outdoor events.; Located in Negaunee's revitalized downtown Social District, benefiting from high visibility and foot traffic.
