Drive-Through Restaurant
New
For Sale
$650,000
313 S State St, Sparta, MI 49345
Updated restaurant facility with customer parking, drive-through service, and a position within an active retail corridor.
Property Size2,152 SF
Lot Size0.70 Acres
Price / SF$302.04
Days on Market5
Property Features for 313 S State St
General Information
Standard status
Active
Size
2,152 SF
Total Parking Spaces
25
Lot size
0.70 Acres
Property subtype
Retail
Zoning
GC
Site & Location
Drive-Thru
Yes
Traffic Count
9,520 vehicles/day
Road Access
Yes
Amenities
Drive-Thru
25 Parking Spaces
Building Details
Year Built
2014
Parking Ratio
11.6 per 1,000 SF
Listing Agency:
NAI Wisinski of West Michigan
(616) 575-7006
Listed By:
Chandler Kennell · License #6502343174
(616) 575-7006
Source:
Carwm.resimplifi
Added: Aug 27
Changed: Aug 31
Last Checked: Aug 31 at 1:38PM
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 NAI Wisinski of West Michigan
Investment Insights
Based on property information with market context.
This 2,152-square-foot drive-through restaurant occupies approximately 0.70 acres and was constructed in 2014. Improvements were refreshed in 2025, and the property includes 25 dedicated parking spaces along with drive-through service. GC zoning is in place.
The property fronts S State St in Sparta, Michigan, with reported traffic of 9,520 vehicles per day. It is positioned within the area’s main retail corridor, next to Biggby Coffee and near Family Fare Supermarket, placing the restaurant among established commercial uses and neighboring retail activity.
The property fronts S State St in Sparta, Michigan, with reported traffic of 9,520 vehicles per day. It is positioned within the area’s main retail corridor, next to Biggby Coffee and near Family Fare Supermarket, placing the restaurant among established commercial uses and neighboring retail activity.
Key Highlights
- 2,152 SF restaurant on approximately 0.70 acres
- Built in 2014 and refreshed in 2025
- Drive‑through service included
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
$23,935
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
3.68%
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%
$478,700
$478.7K
Cap Rate 7%
$341,929
$341.9K
Cap Rate 9%
$265,944
$265.9K
Market Conditions
NOI Build-Up for 2,152 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
$33.3K $15.48/SF
− Vacancy
−$1.4K −$0.65/SF
EGI
$31.9K $14.83/SF
− OpEx
−$8.0K −$3.71/SF
NOI
$23.9K $11.12/SF
Area
Kent 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%
$478,700
Cap Rate 7%
$341,929
Cap Rate 9%
$265,944
Alternative Uses
Best Use
Specialty Retail
$341.9K
$299.2K – $398.9K
NOI $23,935 @ 7.0% cap · market cap 3.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$384.9K
$336.8K – $449.1K
NOI $26,943 @ 7.0% cap · market cap 4.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9,520 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
387
Businesses Nearby
Explore this area
Business Placement
Demographics for 49345, MI
13,734
Population
5,074
Households
2.7
Avg Household Size
39
Median Age
28%
College-Educated
93%
High-School Grad
52.2 sq mi
ZIP Area
263
Density / Sq Mi
$84,918
Median Household Income
$44,051
Median Earnings
$968
Median Rent
$261,400
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?
Drive through restaurant - Updated restaurant facility with customer parking, drive-through service, and a position within an active retail corridor.
Where is this drive through restaurant located?
The property is located at 313 S State St Sparta, MI.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: 2,152 SF restaurant on approximately 0.70 acres; Built in 2014 and refreshed in 2025; Drive‑through service included
