Building Details

Building Size 8,383 SF

Year Built 1956

Listing Agency: Keller Williams Empower t***@brostgroup.com Show Phone

Listed By: Brost Group* · License #5899290 Show Phone

Source: Therealtycompanyllc

Added: Jul 29 Changed: Aug 22 Last Checked: Aug 22 at 1:01PM

Report an Issue

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 Keller Williams Empower

Investment Insights

Based on property information with market context.

This conventional restaurant property combines a hospitality operation with dedicated event facilities. The building includes a bar, dining room seating for up to 200 guests, a commercial kitchen with fixtures and equipment, private office space, and storage areas. Constructed in 1956, the property is located at 3212 N Union Rd in Cato, Wisconsin, and carries Commercial zoning.

Outdoor improvements include a concrete event area designed for tented or open-air gatherings of up to 400 guests. A pond is also located on the property. The restaurant may be acquired separately or together with the adjacent golf course, offering flexibility for an owner seeking a standalone food-and-beverage operation or a larger hospitality property.

Key Highlights

• Dining room accommodates up to 200 guests
• Concrete event area supports gatherings of up to 400 guests
• Commercial kitchen includes fixtures and equipment

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

$31,117

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

3.46%

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%

$622,340 $622.3K

Cap Rate 7%

$444,529 $444.5K

Cap Rate 9%

$345,744 $345.7K

Market Conditions

NOI Build-Up for 8,383 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

$45.3K $5.40/SF

− Vacancy

−$815 −$0.10/SF

EGI

$44.5K $5.30/SF

− OpEx

−$13.3K −$1.59/SF

NOI

$31.1K $3.71/SF

Area

Manitowoc County, WI

Vacancy

1.80%

Lease Rate

$5.40 /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%

$622,340

Cap Rate 7%

$444,529

Cap Rate 9%

$345,744

Alternative Uses

Best Use

Specialty Retail

$1.84M

$1.61M – $2.14M (±1% cap)

NOI $128,599 @ 7.0% cap · market cap 14.30%

Second Best

Industrial

$444.5K

$389.0K – $518.6K (±1% cap)

NOI $31,117 @ 7.0% cap · market cap 3.46%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Pro Shop Golf Course The Golf Course at Branch ... Golf Course

Suggested Use

Top Pick Barber Shop Skin Care Clinic Restaurant Bar & Pub

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

14

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 54230, WI

4,623

Population

1,789

Households

2.6

Avg Household Size

44

Median Age

17%

College-Educated

91%

High-School Grad

109.0 sq mi

ZIP Area

42

Density / Sq Mi

$78,964

Median Household Income

$46,392

Median Earnings

$650

Median Rent

$205,100

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Commercial restaurant with a large dining room, professional kitchen, event grounds, and private administrative space.

Where is this conventional restaurant located?

The property is located at 3212 N Union Rd Cato, WI.

What is the asking price?

The asking price for this property is $899,000.

What are key features of this property?

This property features: Dining room accommodates up to 200 guests; Concrete event area supports gatherings of up to 400 guests; Commercial kitchen includes fixtures and equipment