Restaurant with Event Space and Full
For Sale
Contact for pricing
307 South Main Street, Ann Arbor, MI 48104
Established Indian restaurant offering a full kitchen and a lower-level event space with a full bar for group dining and parties.
Property Size5,003 SF
Price / SF$199.88
Days on Market65
Property Features for 307 South Main Street
General Information
Standard status
Active
Size
5,003 SF
Property subtype
Business for Sale
Investment Type
Owner/User
Listing Agency:
Colliers - Ann Arbor, Michigan
(734) 994-3100
Listed By:
Jim Chaconas · License #MI 6502358011
Source:
Crexi
Added: Jun 18
Changed: Aug 14
Last Checked: Aug 20 at 12:32AM
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 Colliers - Ann Arbor, Michigan
Investment Insights
Based on property information with market context.
Shalimar Restaurant is an established Indian dining establishment with a full kitchen designed for active service, including two (2) cooking hoods and a walk-in cooler. The restaurant layout is described as versatile for daily operations and private events. An on-site elevator supports accessibility for guests, including for the dedicated lower-level event space.
The property is located at 307 S. Main Street in downtown Ann Arbor, positioned along a restaurant corridor with exposure to University of Michigan students and faculty, downtown office workers, residents, tourists, and event traffic. The remarks indicate steady, year-round demand tied to local nightlife and major community and campus activity, including major sporting events, graduation ceremonies, conferences, and the Ann Arbor Art Fair.
For operators or investors seeking a turn-key restaurant concept with an existing brand and more than 10 years of operation, the space is built to support both regular service and additional capacity for group dining. The presence of a full bar in the lower-level event area adds flexibility for private parties and special events, while the core kitchen and storage improvements support day-to-day functionality.
The property is located at 307 S. Main Street in downtown Ann Arbor, positioned along a restaurant corridor with exposure to University of Michigan students and faculty, downtown office workers, residents, tourists, and event traffic. The remarks indicate steady, year-round demand tied to local nightlife and major community and campus activity, including major sporting events, graduation ceremonies, conferences, and the Ann Arbor Art Fair.
For operators or investors seeking a turn-key restaurant concept with an existing brand and more than 10 years of operation, the space is built to support both regular service and additional capacity for group dining. The presence of a full bar in the lower-level event area adds flexibility for private parties and special events, while the core kitchen and storage improvements support day-to-day functionality.
Key Highlights
- Established Indian restaurant at 307 S. Main Street in downtown Ann Arbor
- North Indian, tandoori, and mughlai cuisines with steady, year‑round demand sources listed
- Full kitchen with two (2) hoods and a walk‑in cooler
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
$65,953
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
6.60%
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%
$1,319,060
$1.3M
Cap Rate 7%
$942,186
$942.2K
Cap Rate 9%
$732,811
$732.8K
Market Conditions
NOI Build-Up for 5,003 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
$93.1K $18.60/SF
− Vacancy
−$5.1K −$1.02/SF
EGI
$87.9K $17.58/SF
− OpEx
−$22.0K −$4.39/SF
NOI
$66.0K $13.18/SF
Area
Ann Arbor, MI
Vacancy
5.50%
Lease Rate
$18.60 /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%
$1,319,060
Cap Rate 7%
$942,186
Cap Rate 9%
$732,811
Alternative Uses
Best Use
Specialty Retail
$942.2K
$824.4K – $1.10M
NOI $65,953 @ 7.0% cap · market cap 6.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.10M
$966.8K – $1.29M
NOI $77,346 @ 7.0% cap · market cap 7.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,510
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
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?
Conventional restaurant - Established Indian restaurant offering a full kitchen and a lower-level event space with a full bar for group dining and parties.
Where is this conventional restaurant located?
The property is located at 307 South Main Street Ann Arbor, MI.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Established Indian restaurant at 307 S. Main Street in downtown Ann Arbor; North Indian, tandoori, and mughlai cuisines with steady, year‑round demand sources listed; Full kitchen with two (2) hoods and a walk‑in cooler
