Breakfast Diner with Kitchen
For Sale
$245,900
3530 Michigan St, Hobart, IN 46342
All-brick restaurant building with two dining rooms, two bathrooms, on-site parking, and an extensive commercial kitchen package.
Property Size1,144 SF
Price / SF$214.95
Days on Market148
Property Features for 3530 Michigan St
General Information
Standard status
Active
Size
1,144 SF
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$2,682
Building Details
Construction
brick
Listing Agency:
Listing Leaders MVPs
(219) 218-2685
Listed By:
Christina Perez
(219) 218-2685
Source:
Exprealty
Added: Mar 19
Changed: Aug 12
Last Checked: Aug 12 at 4:31AM
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 Listing Leaders MVPs
Investment Insights
Based on property information with market context.
This 1,144-square-foot all-brick commercial building is configured for a breakfast or lunch diner, with two dining rooms and two bathrooms. The property includes an extensive commercial kitchen package featuring a refrigerator and freezer, oven with stand, range with hood and fire suppression system, coffee maker, ice maker, soda and water cooler, microwave, panini maker, soup warmer, and three-compartment sink. Additional fixtures include a stainless steel storage cabinet and stainless steel prep table.
On-site parking supports the restaurant layout at 3530 Michigan St in Hobart, Indiana. The included equipment and existing dining areas provide a defined physical setup for continued restaurant use.
On-site parking supports the restaurant layout at 3530 Michigan St in Hobart, Indiana. The included equipment and existing dining areas provide a defined physical setup for continued restaurant use.
Key Highlights
- 1,144 SF all‑brick commercial building
- Two dining rooms and two bathrooms
- Commercial range with hood and fire suppression system included
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
$22,355
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
9.09%
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%
$447,100
$447.1K
Cap Rate 7%
$319,357
$319.4K
Cap Rate 9%
$248,389
$248.4K
Market Conditions
NOI Build-Up for 1,144 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
$30.9K $27.00/SF
− Vacancy
−$1.1K −$0.95/SF
EGI
$29.8K $26.06/SF
− OpEx
−$7.5K −$6.51/SF
NOI
$22.4K $19.54/SF
Area
Lake County, IN
Vacancy
3.50%
Lease Rate
$27.00 /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%
$447,100
Cap Rate 7%
$319,357
Cap Rate 9%
$248,389
Alternative Uses
Best Use
Specialty Retail
$319.4K
$279.4K – $372.6K
NOI $22,355 @ 7.0% cap · market cap 9.09%
Second Best
Industrial
$94.8K
$83.0K – $110.6K
NOI $6,637 @ 7.0% cap · market cap 2.70%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
150
Businesses Nearby
35k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 61%
Dining 39%
Speedway
Shops & Services
12,334 visits/mo
0.5 miles
Dunkin' Donuts
Dining
10,050 visits/mo
0.4 miles
Dollar General
Shops & Services
6,718 visits/mo
0.5 miles
El Ranchero
Dining
3,543 visits/mo
0.2 miles
Cash Pawn
Shops & Services
2,291 visits/mo
0.4 miles
Demographics for 46342, IN
32,540
Population
13,774
Households
2.4
Avg Household Size
40
Median Age
21%
College-Educated
93%
High-School Grad
35.0 sq mi
ZIP Area
930
Density / Sq Mi
$72,163
Median Household Income
$41,574
Median Earnings
$1,110
Median Rent
$193,400
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?
Breakfast & diner - All-brick restaurant building with two dining rooms, two bathrooms, on-site parking, and an extensive commercial kitchen package.
Where is this breakfast & diner located?
The property is located at 3530 Michigan St Hobart, IN.
What is the asking price?
The asking price for this property is $245,900.
What are key features of this property?
This property features: 1,144 SF all‑brick commercial building; Two dining rooms and two bathrooms; Commercial range with hood and fire suppression system included
