Historic Multi-Patio Restaurant &
For Sale
$2,400,000
423 S Union Street, Traverse City, MI 49684
Restaurant and bar space with seating for 200-plus, fully equipped commercial kitchen, and multiple outdoor patios.
Property Size7,120 SF
Days on Market306
Property Features for 423 S Union Street
General Information
Standard status
Active
Size
7,120 SF
Property subtype
Commercial
Zoning
Commercial, Multi-Family, Office
Restaurant
Commercial Hood
Yes
Liquor License
Yes
Additional Details
Business Included
Yes
Building Details
Building Size
7,120 SF
Year Built
1900
Listing Agency:
Coldwell Banker Schmidt Traverse City
(231) 922-2350
Listed By:
Daniel J Stiebel · License #6502352362
Source:
Carolbollo
Added: Oct 23, 2025
Changed: Aug 24
Last Checked: Aug 18 at 8:43AM
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 Schmidt Traverse City
Investment Insights
Based on property information with market context.
Historic Old Town restaurant and bar space offering a multi-level dining and entertainment layout. The main level includes a dining room and bar area with a fireplace, supported by additional outdoor seating on two spacious patios and a rooftop bar.
The large, fully equipped kitchen is designed for high-volume service, with three commercial hoods suitable for multiple cooking lines and catering. Additional amenities include ample basement storage, well-maintained restrooms, and back-of-house areas intended to support efficient service flow.
The property is adjacent to the Old Town parking deck for parking convenience. It is offered for sale as real estate plus a Class C liquor license, along with furniture, fixtures, and equipment, and it is also available for lease.
The large, fully equipped kitchen is designed for high-volume service, with three commercial hoods suitable for multiple cooking lines and catering. Additional amenities include ample basement storage, well-maintained restrooms, and back-of-house areas intended to support efficient service flow.
The property is adjacent to the Old Town parking deck for parking convenience. It is offered for sale as real estate plus a Class C liquor license, along with furniture, fixtures, and equipment, and it is also available for lease.
Key Highlights
- Old Town Traverse City restaurant and bar space with seating for over 200 guests
- Fully equipped large commercial kitchen with three commercial hoods for multiple cooking lines and catering
- Main level offers a dining room and bar area with fireplace, plus well‑designed back‑of‑house support
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
$95,172
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
3.97%
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%
$1,903,440
$1.9M
Cap Rate 7%
$1,359,600
$1.4M
Cap Rate 9%
$1,057,467
$1.1M
Market Conditions
NOI Build-Up for 7,120 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
$135.0K $18.96/SF
− Vacancy
−$8.1K −$1.14/SF
EGI
$126.9K $17.82/SF
− OpEx
−$31.7K −$4.46/SF
NOI
$95.2K $13.37/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$18.96 /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%
$1,903,440
Cap Rate 7%
$1,359,600
Cap Rate 9%
$1,057,467
Alternative Uses
Best Use
Specialty Retail
$1.36M
$1.19M – $1.59M
NOI $95,172 @ 7.0% cap · market cap 3.97%
Second Best
Industrial
$592.7K
$518.7K – $691.5K
NOI $41,492 @ 7.0% cap · market cap 1.73%
Theoretical Best
Office A
$1.55M
$1.35M – $1.80M
NOI $108,270 @ 7.0% cap · market cap 4.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
2,191
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 76%
Groceries 8%
Dining 6%
Apparel 6%
Speedway
Shops & Services
7,650 visits/mo
0.5 miles
Chase Bank
Shops & Services
6,517 visits/mo
0.5 miles
Fifth Third Bank & ATM
Shops & Services
5,224 visits/mo
0.4 miles
Huntington Bank
Shops & Services
3,876 visits/mo
0.5 miles
Rocket Fizz
Groceries
2,403 visits/mo
0.4 miles
Demographics for 49684, MI
22,025
Population
10,959
Households
2
Avg Household Size
49
Median Age
46%
College-Educated
96%
High-School Grad
52.8 sq mi
ZIP Area
417
Density / Sq Mi
$75,678
Median Household Income
$39,553
Median Earnings
$1,216
Median Rent
$375,700
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 - Restaurant and bar space with seating for 200-plus, fully equipped commercial kitchen, and multiple outdoor patios.
Where is this conventional restaurant located?
The property is located at 423 S Union Street Traverse City, MI.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Old Town Traverse City restaurant and bar space with seating for over 200 guests; Fully equipped large commercial kitchen with three commercial hoods for multiple cooking lines and catering; Main level offers a dining room and bar area with fireplace, plus well‑designed back‑of‑house support
