Building Details

Building Size 1,996 SF

Year Built 1900

Listing Agency: Karen Norton-Broker k***@yahoo.com Show Phone

Listed By: Karen Norton Show Phone

Source: Carolbollo

Added: Jul 30, 2025 Changed: Aug 23 Last Checked: Aug 23 at 5:28AM

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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 Karen Norton-Broker

Investment Insights

Based on property information with market context.

This remodeled restaurant is located in downtown Petersburg, just west off US23 and south of Dundee by one exit, and 13 miles north of the Ohio line. The property has parking available in the front and side, with an alley drive leading to a parking lot in the back. Additionally, a large city parking lot is nearby. Having functioned as a restaurant for over 40 years, this is a turn-key opportunity.

Key Highlights

• Turn‑key restaurant ready for immediate operation and revenue generation.
• Established restaurant location with a 40+ year history.
• Ample parking including front, side alley access to a back parking lot, and proximity to a large city parking lot.

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

$19,442

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

8.10%

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%

$388,840 $388.8K

Cap Rate 7%

$277,743 $277.7K

Cap Rate 9%

$216,022 $216.0K

Market Conditions

NOI Build-Up for 1,996 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

$28.0K $14.04/SF

− Vacancy

−$2.1K −$1.05/SF

EGI

$25.9K $12.99/SF

− OpEx

−$6.5K −$3.25/SF

NOI

$19.4K $9.74/SF

Area

Monroe County, MI

Vacancy

7.50%

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%

$388,840

Cap Rate 7%

$277,743

Cap Rate 9%

$216,022

Alternative Uses

Best Use

Specialty Retail

$277.7K

$243.0K – $324.0K (±1% cap)

NOI $19,442 @ 7.0% cap · market cap 8.10%

Second Best

—

—

no second resolved use

Theoretical Best

Warehouse

$2.06M

$1.80M – $2.40M (±1% cap)

NOI $144,103 @ 7.0% cap · market cap 60.04%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Poppas place tres Restaurant

Suggested Use

Top Pick Real Estate Agency Building Supply Hair Salon Plumbing Service Grocery & Convenience Store Storage Facility

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

99

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 49270, MI

5,822

Population

2,316

Households

2.5

Avg Household Size

44

Median Age

28%

College-Educated

93%

High-School Grad

44.9 sq mi

ZIP Area

130

Density / Sq Mi

$89,412

Median Household Income

$55,114

Median Earnings

$761

Median Rent

$269,700

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Turn-key restaurant opportunity in downtown Petersburg, ready for business.

Where is this conventional restaurant located?

The property is located at 36 Saline Street Petersburg, MI.

What is the asking price?

The asking price for this property is $240,000.

What are key features of this property?

This property features: Turn‑key restaurant ready for immediate operation and revenue generation.; Established restaurant location with a 40+ year history.; Ample parking including front, side alley access to a back parking lot, and proximity to a large city parking lot.