Established Restaurant Near Higgins
For Sale
$225,000
3556 Higgins Lake Drive, Roscommon, MI 48653
Cozy 40-seat restaurant, local favorite for 60+ years.
Property Size1,296 SF
Price / SF$173.61
Days on Market185
Property Features for 3556 Higgins Lake Drive
General Information
Standard status
Active
Size
1,296 SF
Property subtype
Business Opportunities
Amenities
A/C - Other
3
Parking.
Lot.
150X437, 1.51
Asphalt.
Listing Agency:
Century 21 Realty North Grayling
(989) 348-5474
Listed By:
Michael McGuire · License #6501408949
(989) 619-3517
Source:
Xome
Added: Mar 10
Changed: Sep 9
Last Checked: Sep 10 at 6:33AM
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 Century 21 Realty North Grayling
Investment Insights
Based on property information with market context.
This established restaurant, seating 40 guests, is located in the Higgins Lake and Houghton Lake area. The property features a compact kitchen and has been a local dining destination for over 60 years, known for homemade meals and pies. Situated in proximity to nearly 1,000 state park campsites and numerous cottages, the restaurant benefits from consistent local and tourist traffic. The sale includes all equipment except for one table. The intended use of the property is as a restaurant.
Key Highlights
- Established restaurant with a 60+ year history and loyal customer base
- Prime location between Higgins Lake and Houghton Lake, near state park campsites and cottages
- Seating capacity for 40 guests
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
$9,867
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
4.39%
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%
$197,340
$197.3K
Cap Rate 7%
$140,957
$141.0K
Cap Rate 9%
$109,633
$109.6K
Market Conditions
NOI Build-Up for 1,296 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
$18.2K $14.04/SF
− Vacancy
−$5.0K −$3.89/SF
EGI
$13.2K $10.15/SF
− OpEx
−$3.3K −$2.54/SF
NOI
$9.9K $7.61/SF
Area
Roscommon County, MI
Vacancy
27.70%
Lease Rate
$14.04 /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%
$197,340
Cap Rate 7%
$140,957
Cap Rate 9%
$109,633
Alternative Uses
Best Use
Specialty Retail
$141.0K
$123.3K – $164.5K
NOI $9,867 @ 7.0% cap · market cap 4.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$213.3K
$186.6K – $248.8K
NOI $14,930 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48653, MI
9,598
Population
9,814
Households
1
Avg Household Size
55
Median Age
27%
College-Educated
93%
High-School Grad
241.8 sq mi
ZIP Area
40
Density / Sq Mi
$67,708
Median Household Income
$41,548
Median Earnings
$801
Median Rent
$161,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Cozy 40-seat restaurant, local favorite for 60+ years.
Where is this conventional restaurant located?
The property is located at 3556 Higgins Lake Drive Roscommon, MI.
What is the asking price?
The asking price for this property is $225,000.
What are key features of this property?
This property features: Established restaurant with a 60+ year history and loyal customer base; Prime location between Higgins Lake and Houghton Lake, near state park campsites and cottages; Seating capacity for 40 guests
