Updated Restaurant
For Sale
$299,900
3135 S Pennsylvania Avenue, Lansing, MI 48910
Operating restaurant property with commercial kitchen infrastructure, cooling capacity, and adaptable interior space.
Property Size3,004 SF
Price / SF$99.83
Days on Market109
Property Features for 3135 S Pennsylvania Avenue
General Information
Standard status
Active
Size
3,004 SF
Taxes and HOA fees
Annual Taxes
$7,164
Listing Agency:
RE/MAX Real Estate Professionals
(517) 490-1230
Listed By:
Mario R Baldino · License #6501415320
(517) 490-1230
Source:
Exprealty
Added: May 13
Changed: Aug 29
Last Checked: Aug 29 at 11:41AM
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 RE/MAX Real Estate Professionals
Investment Insights
Based on property information with market context.
Located at 3135 S Pennsylvania Avenue in Lansing, Michigan, this restaurant property includes a full commercial kitchen, a large walk-in cooler, and an open interior layout. The building is currently operating as a pizza restaurant and has received recent updates.
The property has also previously operated as a liquor store, providing an established commercial setting with a history of business use. Its flexible interior supports continued restaurant operations or adaptation for other commercial applications, subject to applicable requirements.
The property has also previously operated as a liquor store, providing an established commercial setting with a history of business use. Its flexible interior supports continued restaurant operations or adaptation for other commercial applications, subject to applicable requirements.
Key Highlights
- Full commercial kitchen in place
- Large walk‑in cooler included
- Open interior floor area supports flexible configuration
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
$27,189
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
9.07%
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%
$543,780
$543.8K
Cap Rate 7%
$388,414
$388.4K
Cap Rate 9%
$302,100
$302.1K
Market Conditions
NOI Build-Up for 3,004 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
$45.1K $15.00/SF
− Vacancy
−$6.2K −$2.07/SF
EGI
$38.8K $12.93/SF
− OpEx
−$11.7K −$3.88/SF
NOI
$27.2K $9.05/SF
Area
Lansing, MI
Vacancy
13.80%
Lease Rate
$15.00 /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%
$543,780
Cap Rate 7%
$388,414
Cap Rate 9%
$302,100
Alternative Uses
Best Use
Specialty Retail
$458.8K
$401.5K – $535.3K
NOI $32,119 @ 7.0% cap · market cap 10.71%
Second Best
Retail
$388.4K
$339.9K – $453.2K
NOI $27,189 @ 7.0% cap · market cap 9.07%
Theoretical Best
Office A
$618.3K
$541.1K – $721.4K
NOI $43,284 @ 7.0% cap · market cap 14.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
526
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48910, MI
33,702
Population
17,119
Households
2
Avg Household Size
35
Median Age
32%
College-Educated
91%
High-School Grad
14.2 sq mi
ZIP Area
2,373
Density / Sq Mi
$52,154
Median Household Income
$36,643
Median Earnings
$1,003
Median Rent
$117,600
Median Home Value
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 - Operating restaurant property with commercial kitchen infrastructure, cooling capacity, and adaptable interior space.
Where is this conventional restaurant located?
The property is located at 3135 S Pennsylvania Avenue Lansing, MI.
What is the asking price?
The asking price for this property is $299,900.
What are key features of this property?
This property features: Full commercial kitchen in place; Large walk‑in cooler included; Open interior floor area supports flexible configuration
