Turn-Key Restaurant with
For Sale
$345,000
3510 W Cadillac Drive, Farwell, MI 48622
Diner-style restaurant built in 2001 with a drive-thru window, updated kitchen, and outdoor seating.
Property Size1,612 SF
Lot Size1.00 Acre
Price / SF$214.02
Days on Market135
Property Features for 3510 W Cadillac Drive
General Information
Standard status
Active
Size
1,612 SF
Lot size
1.00 Acre
Property subtype
Business Opportunities
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Amenities
security cameras
alarm system
exterior building and parking lot lighting
drive-thru window with outdoor menu board
large lighted street sign
four picnic tables
outdoor accessible restrooms
central air
makeup air unit
fire suppression system
Central Air
3
Concrete
Shingle
215229240143
Building Details
Year Built
2001
Year Renovated
2025
Construction
diner-style
Listing Agency:
CONDELL WONDER LAND
(989) 539-2771
Listed By:
TROY CONDELL · License #6504204982
(989) 578-9630
Source:
Xome
Added: Apr 26
Changed: Sep 1
Last Checked: Sep 7 at 5:38AM
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 CONDELL WONDER LAND
Investment Insights
Based on property information with market context.
Turn-key restaurant opportunity known as Pit Stop Coney Island. The diner-style building was constructed in 2001 and includes a 29x27 dining area with seating for over 50 guests, a fully updated 14x20 kitchen (2025), an 8x7 prep office, and an 8x7 storage room. Additional support space includes a 5x21 freezer and storage area with a 3-door refrigerator and 3-door freezer. Operational amenities include a drive-thru window with an outdoor menu board, exterior lighting, security cameras, and an alarm system, along with two outdoor accessible restrooms (10x7 and 6x9) and an employee restroom inside.
The property is positioned on nearly one acre in a high-visibility, high-traffic area between Farwell and Cadillac, right off the US-10 expressway exit on M-115 west of Farwell. Exterior features include a large lighted street sign, four picnic tables for outdoor seating, and a spacious 25+ car, recently coated blacktop circle driveway with room for trailer and RV parking.
The sale includes all fixtures and equipment as seen. Heating is provided via natural gas, with a furnace located in the ceiling, central air unit, a makeup air unit, and a fire suppression system. A new well was installed in fall 2025; inventory is to be negotiated separately.
The property is positioned on nearly one acre in a high-visibility, high-traffic area between Farwell and Cadillac, right off the US-10 expressway exit on M-115 west of Farwell. Exterior features include a large lighted street sign, four picnic tables for outdoor seating, and a spacious 25+ car, recently coated blacktop circle driveway with room for trailer and RV parking.
The sale includes all fixtures and equipment as seen. Heating is provided via natural gas, with a furnace located in the ceiling, central air unit, a makeup air unit, and a fire suppression system. A new well was installed in fall 2025; inventory is to be negotiated separately.
Key Highlights
- Diner‑style restaurant built in 2001 with 1,612 SF building and 29x27 dining area seating for 50+ guests
- Fully updated 14x20 kitchen (2025) plus 8x7 prep office and 8x7 storage room
- Drive‑thru window with outdoor menu board, 3‑door refrigerator and 3‑door freezer, plus 5x21 freezer and storage area
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
$21,273
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
6.17%
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%
$425,460
$425.5K
Cap Rate 7%
$303,900
$303.9K
Cap Rate 9%
$236,367
$236.4K
Market Conditions
NOI Build-Up for 1,612 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
$30.0K $18.60/SF
− Vacancy
−$1.6K −$1.00/SF
EGI
$28.4K $17.60/SF
− OpEx
−$7.1K −$4.40/SF
NOI
$21.3K $13.20/SF
Area
Detroit, MI
Vacancy
5.40%
Lease Rate
$18.60 /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%
$425,460
Cap Rate 7%
$303,900
Cap Rate 9%
$236,367
Alternative Uses
Best Use
Specialty Retail
$303.9K
$265.9K – $354.6K
NOI $21,273 @ 7.0% cap · market cap 6.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$355.6K
$311.2K – $414.9K
NOI $24,893 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
6
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48622, MI
6,364
Population
3,213
Households
2
Avg Household Size
47
Median Age
18%
College-Educated
93%
High-School Grad
86.1 sq mi
ZIP Area
74
Density / Sq Mi
$57,500
Median Household Income
$36,019
Median Earnings
$754
Median Rent
$123,600
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 - Diner-style restaurant built in 2001 with a drive-thru window, updated kitchen, and outdoor seating.
Where is this conventional restaurant located?
The property is located at 3510 W Cadillac Drive Farwell, MI.
What is the asking price?
The asking price for this property is $345,000.
What are key features of this property?
This property features: Diner‑style restaurant built in 2001 with 1,612 SF building and 29x27 dining area seating for 50+ guests; Fully updated 14x20 kitchen (2025) plus 8x7 prep office and 8x7 storage room; Drive‑thru window with outdoor menu board, 3‑door refrigerator and 3‑door freezer, plus 5x21 freezer and storage area
