Established Restaurant with
New
For Sale
$474,000
370 N State St, Sparta, MI 49345
Established restaurant property with included equipment, business name, and a long operating history under consistent ownership.
Property Size1,374 SF
Price / SF$344.98
Days on Market2
Property Features for 370 N State St
General Information
Standard status
Active
Size
1,374 SF
Additional Details
Business Included
Yes
Equipment Included
Yes
Building Details
Year Built
1960
Listing Agency:
Eggerding Inc., Arthur K.
Listed By:
Brynadette Powell · License #6501358745
(616) 835-2624
Source:
Katie-k
Added: Sep 7
Last Checked: Sep 7 at 2:49PM
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 Eggerding Inc., Arthur K.
Investment Insights
Based on property information with market context.
This conventional restaurant property includes the business name and restaurant equipment, providing a complete physical and operational offering. The 1,374-square-foot property was built in 1960 and has remained under the same ownership for more than 20 years. New flooring is noted for 11/24/25.
Located at 370 N State St in Sparta, Michigan, the property is associated with a restaurant that has longstanding local recognition and a connection to the military community. The offering includes the real estate, equipment, and established name, creating a single acquisition opportunity for continued restaurant use.
Located at 370 N State St in Sparta, Michigan, the property is associated with a restaurant that has longstanding local recognition and a connection to the military community. The offering includes the real estate, equipment, and established name, creating a single acquisition opportunity for continued restaurant use.
Key Highlights
- 1,374‑square‑foot conventional restaurant property
- Restaurant equipment and established business name included
- Same ownership for more than 20 years
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
$15,282
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
3.22%
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%
$305,640
$305.6K
Cap Rate 7%
$218,314
$218.3K
Cap Rate 9%
$169,800
$169.8K
Market Conditions
NOI Build-Up for 1,374 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
$21.3K $15.48/SF
− Vacancy
−$893 −$0.65/SF
EGI
$20.4K $14.83/SF
− OpEx
−$5.1K −$3.71/SF
NOI
$15.3K $11.12/SF
Area
Kent County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$305,640
Cap Rate 7%
$218,314
Cap Rate 9%
$169,800
Alternative Uses
Best Use
Specialty Retail
$218.3K
$191.0K – $254.7K
NOI $15,282 @ 7.0% cap · market cap 3.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$245.7K
$215.0K – $286.7K
NOI $17,202 @ 7.0% cap · market cap 3.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
220
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49345, MI
13,734
Population
5,074
Households
2.7
Avg Household Size
39
Median Age
28%
College-Educated
93%
High-School Grad
52.2 sq mi
ZIP Area
263
Density / Sq Mi
$84,918
Median Household Income
$44,051
Median Earnings
$968
Median Rent
$261,400
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 - Established restaurant property with included equipment, business name, and a long operating history under consistent ownership.
Where is this conventional restaurant located?
The property is located at 370 N State St Sparta, MI.
What is the asking price?
The asking price for this property is $474,000.
What are key features of this property?
This property features: 1,374‑square‑foot conventional restaurant property; Restaurant equipment and established business name included; Same ownership for more than 20 years
