Building Details

Year Built 1920

Listing Agency: Brookstone, Realtors LLC n***@gmail.com Show Phone

Listed By: Nahed Yousif Show Phone

Source: Exitrealty

Added: Feb 12, 2025 Changed: Aug 8 Last Checked: Jul 16 at 11:18AM

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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 Brookstone, Realtors LLC

Investment Insights

Based on property information with market context.

An established restaurant, operating successfully for three years, is available for purchase. The restaurant is situated on Lakeville Lake and includes a liquor license. The sale encompasses a fully equipped establishment with an inventory valued above $100,000, including a pizza oven, meat slicer, freezer, fridge, and stove. An office area is incorporated into the 1,506 square foot layout. The business has demonstrated revenue, with summer earnings reaching $16,000 per week and winter earnings of $8,000 per week, plus $90,000 a year from Lotto. The kitchen area has a potential of $10,000 weekly. Rent is scheduled to increase in April.

Key Highlights

• Profitable, turnkey restaurant business opportunity.
• Prime lakeside location on Lakeville Lake.
• Includes a liquor license.

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

$22,738

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

9.10%

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%

$454,760 $454.8K

Cap Rate 7%

$324,829 $324.8K

Cap Rate 9%

$252,644 $252.6K

Market Conditions

NOI Build-Up for 1,506 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

$32.5K $21.60/SF

− Vacancy

−$2.2K −$1.47/SF

EGI

$30.3K $20.13/SF

− OpEx

−$7.6K −$5.03/SF

NOI

$22.7K $15.10/SF

Area

Oakland County, MI

Vacancy

6.80%

Lease Rate

$21.60 /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%

$454,760

Cap Rate 7%

$324,829

Cap Rate 9%

$252,644

Alternative Uses

Best Use

Specialty Retail

$324.8K

$284.2K – $379.0K (±1% cap)

NOI $22,738 @ 7.0% cap · market cap 9.10%

Second Best

—

—

no second resolved use

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Lakeville Market and Liquor (Bike/Boat/Book/etc) Store

Suggested Use

Top Pick Auto Repair Shop Dental Office Restaurant Food Market Wine and Liquor Store Bed & Breakfast

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

42

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 48367, MI

4,567

Population

1,652

Households

2.8

Avg Household Size

46

Median Age

38%

College-Educated

94%

High-School Grad

23.4 sq mi

ZIP Area

195

Density / Sq Mi

$104,000

Median Household Income

$42,241

Median Earnings

$1,133

Median Rent

$386,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Thriving restaurant with liquor license and lakeside location for sale.

Where is this conventional restaurant located?

The property is located at 503 LAKEVILLE Road Addison Twp, MI.

What is the asking price?

The asking price for this property is $249,999.

What are key features of this property?

This property features: Profitable, turnkey restaurant business opportunity.; Prime lakeside location on Lakeville Lake.; Includes a liquor license.