Two-Level Restaurant with Outdoor
For Sale
$1,050,000
3459 S US Highway 31, Brutus, MI 49716
Commercial Sale, Brutus, MI
Property Size8,400 SF
Lot Size4.00 Acres
Price / SF$125
Days on Market181
Property Features for 3459 S US Highway 31
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 2, Bathroom 3, Bathroom 1
Interior features
Broadband
Elementary school district
Pellston
Middle school district
Pellston
High school district
Pellston
Standard status
Active
APN
09-14-22-200-004
Size
8,400 SF
Lot size
4.00 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
PT OF NW 1/4 OF SE 1/4 OF SECTION 22, S 1/2 OF N 1/2 OF NW 1/4 OF SE 1/4 OF SD SEC, EXC THEREFROM RR R/O/W. ALSO EXC THEREFROM, COM
Tax Annual Amount
2780
Legal Description
PT OF NW 1/4 OF SE 1/4 OF SECTION 22, S 1/2 OF N 1/2 OF NW 1/4 OF SE 1/4 OF SD SEC, EXC THEREFROM RR R/O/W. ALSO EXC THEREFROM, COM
Utilities
Utilities
Propane
Sewer type
Septic Tank
Heating system
Forced Air
Cooling system
Central Air
Water source
Well
Amenities
water views
Building Details
Year built
1990
Floors in Building
1
Number of units
1
Roof type
Composition
Listing Agency:
Van Treese Management LLC
(231) 373-7921
Listed By:
Christopher Skrobeck
(906) 360-4908
Added: Mar 30
Changed: Sep 17
Last Checked: Sep 26 at 11:06AM
MLS# 26013825
Copyright © 2026 Michigan Regional Information Center, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This restaurant property includes approximately 4 acres and a two-level building with a spacious dining area, water-feature views, and an outdoor deck for seasonal seating. The offering combines the real estate with the operating business assets, including a Class C Resort Liquor License, kitchen equipment, furnishings, point-of-sale technology, telephone equipment, office equipment, and beer service equipment.
Located at 3459 S US Highway 31 in Brutus, the property has a large parking area and direct highway frontage. Building systems include forced-air heating and central air conditioning, with propane service, a well, and a septic tank. The 1990-built facility is configured for restaurant service and can also accommodate private events, weddings, and corporate functions.
Located at 3459 S US Highway 31 in Brutus, the property has a large parking area and direct highway frontage. Building systems include forced-air heating and central air conditioning, with propane service, a well, and a septic tank. The 1990-built facility is configured for restaurant service and can also accommodate private events, weddings, and corporate functions.
Key Highlights
- Approximately 4 acres with a large parking area and highway frontage
- Two‑level restaurant building with spacious dining area and water‑feature views
- Outdoor deck provides seasonal seating
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
$71,064
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
6.77%
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%
$1,421,280
$1.4M
Cap Rate 7%
$1,015,200
$1.0M
Cap Rate 9%
$789,600
$789.6K
Market Conditions
NOI Build-Up for 8,400 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
$100.8K $12.00/SF
− Vacancy
−$6.0K −$0.72/SF
EGI
$94.8K $11.28/SF
− OpEx
−$23.7K −$2.82/SF
NOI
$71.1K $8.46/SF
Area
Emmet County, MI
Vacancy
6.00%
Lease Rate
$12.00 /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%
$1,421,280
Cap Rate 7%
$1,015,200
Cap Rate 9%
$789,600
Alternative Uses
Best Use
Specialty Retail
$1.02M
$888.3K – $1.18M
NOI $71,064 @ 7.0% cap · market cap 6.77%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.90M
$1.66M – $2.22M
NOI $133,070 @ 7.0% cap · market cap 12.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
19
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49716, MI
775
Population
639
Households
1.2
Avg Household Size
55
Median Age
32%
College-Educated
95%
High-School Grad
22.9 sq mi
ZIP Area
34
Density / Sq Mi
$82,438
Median Household Income
$30,250
Median Earnings
$252,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - Restaurant real estate and operating assets include event-ready dining areas, commercial equipment, and seasonal outdoor seating.
Where is this conventional restaurant located?
The property is located at 3459 S US Highway 31 Brutus, MI.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Approximately 4 acres with a large parking area and highway frontage; Two‑level restaurant building with spacious dining area and water‑feature views; Outdoor deck provides seasonal seating
