Turn-Key Restaurant and Catering
For Sale
$3,950,000
3366 M-40 Highway, Hamilton, MI 49419
Established restaurant and catering business with fixtures, equipment, and liquor license.
Property Size10,794 SF
Lot Size2.40 Acres
Price / SF$365.94
Days on Market206
Property Features for 3366 M-40 Highway
General Information
Standard status
Active
Size
10,794 SF
Lot size
2.40 Acres
Property subtype
Retail
Building Details
Year Built
2000
Listing Agency:
Signature Associates
(616) 822-6310
Listed By:
Joe Rizqallah
(616) 822-6310
Source:
Tcnworldwide
Added: Jan 27
Changed: Jul 6
Last Checked: Aug 20 at 5:11AM
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 Signature Associates
Investment Insights
Based on property information with market context.
This turn-key restaurant and catering hall, offered for sale for the first time, presents a unique opportunity to acquire a business with over 40 years of operation. The property spans 10,794 square feet and is situated on over 2.4 acres. The sale includes all fixtures, furniture, and equipment necessary for continued operation, along with an established clientele for events. The facility features a full kitchen and bar, complemented by a Class C Liquor license. The restaurant provides seating for 120 patrons, while Banquet Hall #1 accommodates 200 guests, and Banquet Hall #2 seats 70. Training is available to the new owner. The sale is subject to the seller's verification of the potential buyer's financials and experience.
Key Highlights
- Turn‑key restaurant/catering hall with 40+ years of established business and clientele.
- Includes all fixtures, furniture, and equipment.
- Features a full kitchen and bar with a Class C Liquor license.
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
$120,055
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
3.04%
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%
$2,401,100
$2.4M
Cap Rate 7%
$1,715,071
$1.7M
Cap Rate 9%
$1,333,944
$1.3M
Market Conditions
NOI Build-Up for 10,794 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
$167.1K $15.48/SF
− Vacancy
−$7.0K −$0.65/SF
EGI
$160.1K $14.83/SF
− OpEx
−$40.0K −$3.71/SF
NOI
$120.1K $11.12/SF
Area
Allegan 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%
$2,401,100
Cap Rate 7%
$1,715,071
Cap Rate 9%
$1,333,944
Alternative Uses
Best Use
Specialty Retail
$1.72M
$1.50M – $2.00M
NOI $120,055 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$101.37M
$88.70M – $118.26M
NOI $7,095,677 @ 7.0% cap · market cap 179.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49419, MI
8,720
Population
2,983
Households
2.9
Avg Household Size
37
Median Age
26%
College-Educated
96%
High-School Grad
73.2 sq mi
ZIP Area
119
Density / Sq Mi
$92,708
Median Household Income
$51,644
Median Earnings
$301,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Restaurant - Established restaurant and catering business with fixtures, equipment, and liquor license.
Where is this restaurant located?
The property is located at 3366 M-40 Highway Hamilton, MI.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: Turn‑key restaurant/catering hall with 40+ years of established business and clientele.; Includes all fixtures, furniture, and equipment.; Features a full kitchen and bar with a Class C Liquor license.
