Turnkey Restaurant with
For Sale
$1,070,000
50285 Mound Road, Utica, MI 48317
For sale 4,403 sq ft restaurant building with dining area, outdoor patio, tiki bar, and fire suppression system.
Property Size4,043 SF
Lot Size1.59 Acres
Price / SF$243.02
Days on Market144
Property Features for 50285 Mound Road
General Information
Standard status
Active
Size
4,043 SF
Lot size
1.59 Acres
Property subtype
Commercial
Zoning
Commercial
Additional Details
Business Included
Yes
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$12,946
Amenities
dining area
outdoor patio
Tiki Bar
Building Details
Building Size
4,043 SF
Year Built
1976
Listing Agency:
RE/MAX Advisors
(586) 996-4059
Listed By:
Maria McGuire · License #6504242665
(586) 996-4059
Source:
Carolbollo
Added: Apr 3
Changed: Aug 23
Last Checked: Aug 22 at 1:46PM
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 RE/MAX Advisors
Investment Insights
Based on property information with market context.
This for-sale commercial property is a turnkey restaurant opportunity in a 4,403 sq ft building, currently operating as Esplendido Mexican Restaurant. The layout includes a spacious dining area, an outdoor patio, and a distinctive tiki bar designed for on-site guest experience. The property is equipped with a fire suppression system and other essential infrastructure to support operation.
The restaurant is located along Mound Road on a 1.59-acre site with on-site parking and additional space that may support future expansion or redevelopment. Flexible purchase options are available, including acquiring the real estate separately from the business operation.
The offering can be pursued by an owner-user looking to continue restaurant operations or by an investor considering the building as a commercial asset for other uses, as described in the property remarks.
The restaurant is located along Mound Road on a 1.59-acre site with on-site parking and additional space that may support future expansion or redevelopment. Flexible purchase options are available, including acquiring the real estate separately from the business operation.
The offering can be pursued by an owner-user looking to continue restaurant operations or by an investor considering the building as a commercial asset for other uses, as described in the property remarks.
Key Highlights
- 4,403 SF commercial building on 1.59 acres along Mound Road
- Currently operating as Esplendido Mexican Restaurant with a layout suited for restaurant use
- Includes spacious dining area, outdoor patio, and distinctive Tiki Bar
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
$57,702
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
5.39%
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%
$1,154,040
$1.2M
Cap Rate 7%
$824,314
$824.3K
Cap Rate 9%
$641,133
$641.1K
Market Conditions
NOI Build-Up for 4,403 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
$87.2K $19.80/SF
− Vacancy
−$10.2K −$2.33/SF
EGI
$76.9K $17.47/SF
− OpEx
−$19.2K −$4.37/SF
NOI
$57.7K $13.11/SF
Area
Macomb County, MI
Vacancy
11.75%
Lease Rate
$19.80 /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%
$1,154,040
Cap Rate 7%
$824,314
Cap Rate 9%
$641,133
Alternative Uses
Best Use
Specialty Retail
$824.3K
$721.3K – $961.7K
NOI $57,702 @ 7.0% cap · market cap 5.39%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
88
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48317, MI
27,864
Population
12,936
Households
2.2
Avg Household Size
39
Median Age
32%
College-Educated
90%
High-School Grad
12.0 sq mi
ZIP Area
2,322
Density / Sq Mi
$72,465
Median Household Income
$41,895
Median Earnings
$1,227
Median Rent
$248,700
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 - For sale 4,403 sq ft restaurant building with dining area, outdoor patio, tiki bar, and fire suppression system.
Where is this conventional restaurant located?
The property is located at 50285 Mound Road Utica, MI.
What is the asking price?
The asking price for this property is $1,070,000.
What are key features of this property?
This property features: 4,403 SF commercial building on 1.59 acres along Mound Road; Currently operating as Esplendido Mexican Restaurant with a layout suited for restaurant use; Includes spacious dining area, outdoor patio, and distinctive Tiki Bar
