Remodeled Restaurant on
For Sale
$1,250,000
47409 US41 Highway, Houghton, MI 49931
COMMERCIAL - Houghton, MI
Property Size6,927 SF
Lot Size1.04 Acres
Price / SF$180.45
Days on Market122
Property Features for 47409 US41 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Zoning description
Commercial
Parking features
Parking Lot
Patio and Porch features
Patio
Exterior features
Deck/Patio, Wheelchair Access
Accessibility
Accessible Approach with Ramp
Lot features
Cleared
Subdivision
Portage Twp (31024)
Standard status
Active
Size
6,927 SF
Lot size
1.04 Acres
Utilities
Heating system
Forced Air
Cooling system
Central Air
Water source
Private
Building Details
Year built
1950
Roof type
Shingle, Rubber
Listing Agency:
EXP REALTY OF MARQUETTE
(888) 501-7085
Listed By:
LINDA JOHNSON
(906) 250-6846
Added: Apr 22
Changed: Aug 4
Last Checked: Aug 21 at 5:06PM
MLS# 50205112
Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This remodeled restaurant property offers a turnkey starting point for a new concept or an expansion of an existing restaurant footprint. With Commercial zoning, the building is positioned for food and beverage use, leaving room for your vision to shape the guest experience.
Located on US41 in Houghton, the property is across the street from a recreational trail. It is also close to the Portage Lake Golf Course and approximately one mile from Michigan Tech’s campus.
If you’re looking for a highway-adjacent restaurant location with nearby recreational and university traffic drivers, schedule a tour with your agent to review the space and next steps.
Located on US41 in Houghton, the property is across the street from a recreational trail. It is also close to the Portage Lake Golf Course and approximately one mile from Michigan Tech’s campus.
If you’re looking for a highway-adjacent restaurant location with nearby recreational and university traffic drivers, schedule a tour with your agent to review the space and next steps.
Key Highlights
- Remodeled restaurant with wheelchair access features, including an accessible approach with ramp
- Located on US 41 across from a recreational trail and about one mile to Michigan Tech in Houghton
- Central air and forced‑air heating for year‑round comfort
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
$66,539
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
5.32%
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%
$1,330,780
$1.3M
Cap Rate 7%
$950,557
$950.6K
Cap Rate 9%
$739,322
$739.3K
Market Conditions
NOI Build-Up for 6,927 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
$108.1K $15.60/SF
− Vacancy
−$19.3K −$2.79/SF
EGI
$88.7K $12.81/SF
− OpEx
−$22.2K −$3.20/SF
NOI
$66.5K $9.61/SF
Area
Houghton County, MI
Vacancy
17.90%
Lease Rate
$15.60 /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%
$1,330,780
Cap Rate 7%
$950,557
Cap Rate 9%
$739,322
Alternative Uses
Best Use
Specialty Retail
$950.6K
$831.7K – $1.11M
NOI $66,539 @ 7.0% cap · market cap 5.32%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$85.65M
$74.94M – $99.93M
NOI $5,995,582 @ 7.0% cap · market cap 479.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
37
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49931, MI
10,307
Population
3,490
Households
3
Avg Household Size
25
Median Age
60%
College-Educated
95%
High-School Grad
26.4 sq mi
ZIP Area
390
Density / Sq Mi
$47,279
Median Household Income
$10,579
Median Earnings
$853
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Remodeled restaurant property on US41 with Commercial zoning, near a recreational trail and close to Michigan Tech.
Where is this conventional restaurant located?
The property is located at 47409 US41 Highway Houghton, MI.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Remodeled restaurant with wheelchair access features, including an accessible approach with ramp; Located on US 41 across from a recreational trail and about one mile to Michigan Tech in Houghton; Central air and forced‑air heating for year‑round comfort
