Historic Restaurant with Rental
For Sale
Contact for pricing
355 E Main, Stoughton, WI 53589
Turnkey restaurant with strong reputation and additional rental income.
Property Size2,794 SF
Price / SF$223.69
Days on Market146
Property Features for 355 E Main
General Information
Standard status
Active
Size
2,794 SF
Total Parking Spaces
1
Property subtype
Retail, Multifamily
Occupancy
100%
Investment Type
Owner/User
Building Details
Year Built
1890
Units
1
Tenancy
Multi
Listing Agency:
First Weber Group West Towne
(312) 502-2900
Listed By:
Brian Conne · License #WI 94-81894
Source:
Crexi
Added: Mar 19
Changed: Aug 9
Last Checked: Aug 11 at 5:55AM
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 First Weber Group West Towne
Investment Insights
Based on property information with market context.
This historic property in Stoughton presents an opportunity to acquire a business and real estate. The Koffee Kup restaurant benefits from high visibility and accessibility on Main Street, with a strong reputation reflected in its online ratings, particularly for food quality, service, and value. The restaurant features a welcoming ambiance, an established customer base, and a versatile menu that includes classic breakfasts, homemade pies, and daily specials. The property offers a turnkey opportunity for an operator seeking a well-maintained community hub. The seller has invested in updates, including a new commercial HVAC system and updated kitchen appliances. An upstairs apartment provides additional rental income. The tenant is currently month to month and paying below market rent. According to the seller, this property is Stoughton’s oldest building to have operated as a restaurant continuously since it was built.
Key Highlights
- Established, Profitable Business: Turnkey restaurant with a strong reputation and loyal customer base.
- Prime Location: Exceptional visibility and accessibility on Main Street in Stoughton.
- Updated Infrastructure: Features a new commercial HVAC system and updated kitchen appliances.
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
$35,682
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
5.71%
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%
$713,640
$713.6K
Cap Rate 7%
$509,743
$509.7K
Cap Rate 9%
$396,467
$396.5K
Market Conditions
NOI Build-Up for 2,794 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
$50.3K $18.00/SF
− Vacancy
−$2.7K −$0.97/SF
EGI
$47.6K $17.03/SF
− OpEx
−$11.9K −$4.26/SF
NOI
$35.7K $12.77/SF
Area
Dane County, WI
Vacancy
5.40%
Lease Rate
$18.00 /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%
$713,640
Cap Rate 7%
$509,743
Cap Rate 9%
$396,467
Alternative Uses
Best Use
Specialty Retail
$509.7K
$446.0K – $594.7K
NOI $35,682 @ 7.0% cap · market cap 5.71%
Second Best
Apartment 5plus
$322.0K
$281.8K – $375.7K
NOI $22,542 @ 7.0% cap · market cap 3.61%
Theoretical Best
Office A
$649.3K
$568.1K – $757.5K
NOI $45,449 @ 7.0% cap · market cap 7.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
594
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 53589, WI
19,888
Population
9,014
Households
2.2
Avg Household Size
45
Median Age
40%
College-Educated
96%
High-School Grad
85.0 sq mi
ZIP Area
234
Density / Sq Mi
$93,509
Median Household Income
$52,809
Median Earnings
$1,150
Median Rent
$318,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- Naeset-Roe Bed & Breakfast — 126 E Washington St, Stoughton, WI 53589
- Koffee Kup — 355 E Main St, Stoughton, WI 53589
- Wildwood Café — 218 S Forrest St, Stoughton, WI 53589
Frequently Asked Questions
What type of property is this?
Breakfast & diner - Turnkey restaurant with strong reputation and additional rental income.
Where is this breakfast & diner located?
The property is located at 355 E Main Stoughton, WI.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Established, Profitable Business: Turnkey restaurant with a strong reputation and loyal customer base.; Prime Location: Exceptional visibility and accessibility on Main Street in Stoughton.; Updated Infrastructure: Features a new commercial HVAC system and updated kitchen appliances.
