Established Pizza Restaurant
For Sale
$525,000
3263 E Colby Street #Suite I, Whitehall, MI 49461
Business sale includes equipment and goodwill; real estate is excluded.
Property Size3,300 SF
Price / SF$159.09
Days on Market520
Property Features for 3263 E Colby Street #Suite I
General Information
Standard status
Active
Size
3,300 SF
Property subtype
Business Opportunity
Lease Term
Cash, Conventional, Lease
Additional Details
Business Included
Yes
Highway Access
Yes
Equipment Included
Yes
Building Details
Building Size
3,300 SF
Year Built
9999
Units
3
Listing Agency:
Town Square Real Estate Group LLC
(231) 730-1658
Listed By:
Christopher Wenk · License #6501435305
(231) 327-4697
Source:
Sabudarealty
Added: Apr 4, 2025
Changed: Sep 4
Last Checked: Sep 2 at 1:45AM
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 Town Square Real Estate Group LLC
Investment Insights
Based on property information with market context.
This established pizza restaurant business operates from Suite I at 3263 E Colby Street in Whitehall, Michigan. The operation includes a dining area and a fully equipped kitchen, with the sale covering the business, equipment, and goodwill.
The restaurant is positioned just off a major highway and is surrounded by a strip mall and multiple businesses. The real estate is not part of the sale, making this an opportunity to acquire the operating business and its associated assets without purchasing the property.
The restaurant is positioned just off a major highway and is surrounded by a strip mall and multiple businesses. The real estate is not part of the sale, making this an opportunity to acquire the operating business and its associated assets without purchasing the property.
Key Highlights
- Operating pizza restaurant established in 1970
- Sale includes the business, equipment, and goodwill
- Spacious dining area and fully equipped kitchen
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
$36,704
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
6.99%
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%
$734,080
$734.1K
Cap Rate 7%
$524,343
$524.3K
Cap Rate 9%
$407,822
$407.8K
Market Conditions
NOI Build-Up for 3,300 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
$51.1K $15.48/SF
− Vacancy
−$2.1K −$0.65/SF
EGI
$48.9K $14.83/SF
− OpEx
−$12.2K −$3.71/SF
NOI
$36.7K $11.12/SF
Area
Muskegon 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%
$734,080
Cap Rate 7%
$524,343
Cap Rate 9%
$407,822
Alternative Uses
Best Use
Specialty Retail
$524.3K
$458.8K – $611.7K
NOI $36,704 @ 7.0% cap · market cap 6.99%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$30.99M
$27.12M – $36.16M
NOI $2,169,329 @ 7.0% cap · market cap 413.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
194
Businesses Nearby
7k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 82%
Electronics 18%
BIGGBY COFFEE
Dining
6,064 visits/mo
0.2 miles
Verizon
Electronics
1,323 visits/mo
0.2 miles
Demographics for 49461, MI
9,295
Population
4,220
Households
2.2
Avg Household Size
47
Median Age
30%
College-Educated
97%
High-School Grad
43.2 sq mi
ZIP Area
215
Density / Sq Mi
$80,495
Median Household Income
$42,249
Median Earnings
$874
Median Rent
$245,600
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 - Business sale includes equipment and goodwill; real estate is excluded.
Where is this conventional restaurant located?
The property is located at 3263 E Colby Street #Suite I Whitehall, MI.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Operating pizza restaurant established in 1970; Sale includes the business, equipment, and goodwill; Spacious dining area and fully equipped kitchen
