Restaurant Building with Dining
For Sale
$300,000
5036 Paw Paw Lake Road, Coloma, MI 49038
COMMERCIAL - Coloma, MI
Property Size2,000 SF
Lot Size0.38 Acres
Price / SF$150
Days on Market302
Property Features for 5036 Paw Paw Lake Road
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Parking
35
Elementary school district
Coloma
Middle school district
Coloma
High school district
Coloma
Subdivision
Southwestern Michigan - S
Standard status
Active
APN
11-08-4520-0009-00-8
Size
2,000 SF
Lot size
0.38 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
Per title
Tax Annual Amount
3823
Legal Description
Per title
Utilities
Utilities
Natural Gas Available
Heating system
Forced Air
Building Details
Year built
1955
Floors in Building
1
Number of units
1
Building materials
Block, Vinyl Siding
Roof type
Stone
Listing Agency:
Coldwell Banker Realty · Coldwell Banker Real Estate
(269) 469-3950
Listed By:
Whitney Lents
(269) 487-6389
Added: Oct 24, 2025
Changed: Aug 4
Last Checked: Aug 21 at 2:06AM
MLS# 25054896
Copyright © 2026 Michigan Regional Information Center, LLC. 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.
Offered for the building only, this restaurant property in Coloma includes a spacious 20' x 40' addition for expanded dining or flexible use. The building has recent upgrades, including a new roof and updated electrical, supporting a turn-key foundation for an operator bringing their concept to life.
The property is located directly across from Paw Paw Lake, offering visibility and accessibility tied to year-round recreational traffic.
With approximately 2,000 square feet of building size and a single property offering, this is a straightforward choice for buyers looking to invest in or operate a restaurant use within a high-activity lake area.
The property is located directly across from Paw Paw Lake, offering visibility and accessibility tied to year-round recreational traffic.
With approximately 2,000 square feet of building size and a single property offering, this is a straightforward choice for buyers looking to invest in or operate a restaurant use within a high-activity lake area.
Key Highlights
- Building‑only investment opportunity in Coloma, located directly across from Paw Paw Lake
- 20' x 40' addition for expanded dining or flexible use
- Recent upgrades include a new roof and updated electrical
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
$22,245
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
7.41%
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%
$444,900
$444.9K
Cap Rate 7%
$317,786
$317.8K
Cap Rate 9%
$247,167
$247.2K
Market Conditions
NOI Build-Up for 2,000 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
$31.0K $15.48/SF
− Vacancy
−$1.3K −$0.65/SF
EGI
$29.7K $14.83/SF
− OpEx
−$7.4K −$3.71/SF
NOI
$22.2K $11.12/SF
Area
Berrien County, MI
Vacancy
4.20%
Lease Rate
$15.48 /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%
$444,900
Cap Rate 7%
$317,786
Cap Rate 9%
$247,167
Alternative Uses
Best Use
Specialty Retail
$317.8K
$278.1K – $370.8K
NOI $22,245 @ 7.0% cap · market cap 7.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$420.9K
$368.3K – $491.0K
NOI $29,460 @ 7.0% cap · market cap 9.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
65
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 49038, MI
8,979
Population
5,124
Households
1.8
Avg Household Size
45
Median Age
21%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
230
Density / Sq Mi
$60,396
Median Household Income
$41,663
Median Earnings
$944
Median Rent
$196,200
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 - For-sale restaurant building with a 20' x 40' addition and recent upgrades including a new roof and updated electrical.
Where is this conventional restaurant located?
The property is located at 5036 Paw Paw Lake Road Coloma, MI.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Building‑only investment opportunity in Coloma, located directly across from Paw Paw Lake; 20' x 40' addition for expanded dining or flexible use; Recent upgrades include a new roof and updated electrical
