Waterfront Conventional
For Sale
Contact for pricing
4168 W Houghton Lake Dr, Houghton Lake, MI 48629
Four bar areas, commercial kitchen, event space, beach, dock, and lake views support varied restaurant and entertainment operations.
Property Size8,240 SF
Price / SF$218.45
Days on Market11
Property Features for 4168 W Houghton Lake Dr
General Information
Standard status
Active
Size
8,240 SF
Property subtype
Hospitality
Zoning
Commercial
Building Details
Tenancy
Single
Listing Agency:
Coldwell Banker Commercial Schmidt, Realtors Prudenville
(989) 429-3100
Listed By:
Thomas Bailey · License #MI
Source:
Crexi
Added: Jul 30
Changed: Aug 8
Last Checked: Aug 9 at 10:01AM
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 Coldwell Banker Commercial Schmidt, Realtors Prudenville
Investment Insights
Based on property information with market context.
Limberlost Lounge & Restaurant is a waterfront conventional restaurant on Houghton Lake with 152 feet of shoreline frontage. The property includes four separate bar areas, including an indoor horseshoe bar, a lake-level open-air bar, a 1,404-square-foot three-sided lakeside pavilion bar, and another bar with entertainment space. A second-floor area originally designed as a poker room adds flexibility for private events, gaming, entertainment, or seating. The operation also includes a commercial kitchen with equipment and a modern POS system, plus a dining-area char broiler that allows guests to watch steak preparation.
Additional improvements include a 560-square-foot open-air lakeside balcony, indoor and outdoor seating, flat-screen televisions, a leather-furnished lounge, entertainment stage, sandy beach, lakeside dock, and multiple gathering areas. Located at 4168 W Houghton Lake Dr in Houghton Lake, Michigan, the property occupies a central South Shore position on Houghton Lake, which covers over 22,000 acres and supports boating, fishing, snowmobiling, and summer tourism.
Additional improvements include a 560-square-foot open-air lakeside balcony, indoor and outdoor seating, flat-screen televisions, a leather-furnished lounge, entertainment stage, sandy beach, lakeside dock, and multiple gathering areas. Located at 4168 W Houghton Lake Dr in Houghton Lake, Michigan, the property occupies a central South Shore position on Houghton Lake, which covers over 22,000 acres and supports boating, fishing, snowmobiling, and summer tourism.
Key Highlights
- 152 feet of frontage on Houghton Lake
- Four distinct bar areas, including a 1,404‑square‑foot lakeside pavilion bar
- 560‑square‑foot open‑air balcony with lake views
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
$62,733
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
3.49%
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%
$1,254,660
$1.3M
Cap Rate 7%
$896,186
$896.2K
Cap Rate 9%
$697,033
$697.0K
Market Conditions
NOI Build-Up for 8,240 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
$115.7K $14.04/SF
− Vacancy
−$32.0K −$3.89/SF
EGI
$83.6K $10.15/SF
− OpEx
−$20.9K −$2.54/SF
NOI
$62.7K $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%
$1,254,660
Cap Rate 7%
$896,186
Cap Rate 9%
$697,033
Alternative Uses
Best Use
Specialty Retail
$896.2K
$784.2K – $1.05M
NOI $62,733 @ 7.0% cap · market cap 3.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.36M
$1.19M – $1.58M
NOI $94,925 @ 7.0% cap · market cap 5.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
103
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48629, MI
7,420
Population
7,248
Households
1
Avg Household Size
56
Median Age
18%
College-Educated
90%
High-School Grad
77.5 sq mi
ZIP Area
96
Density / Sq Mi
$54,622
Median Household Income
$33,544
Median Earnings
$784
Median Rent
$142,300
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 - Four bar areas, commercial kitchen, event space, beach, dock, and lake views support varied restaurant and entertainment operations.
Where is this conventional restaurant located?
The property is located at 4168 W Houghton Lake Dr Houghton Lake, MI.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 152 feet of frontage on Houghton Lake; Four distinct bar areas, including a 1,404‑square‑foot lakeside pavilion bar; 560‑square‑foot open‑air balcony with lake views
