Restaurant Building with Dining
For Sale
$300,000
5036 Paw Paw Lake Road, Coloma, MI 49038
Restaurant building for sale with a 20' x 40' addition and recent roof and electrical upgrades.
Property Size2,000 SF
Days on Market293
Property Features for 5036 Paw Paw Lake Road
General Information
Standard status
Active
Size
2,000 SF
Total Parking Spaces
35
Property subtype
Business Opportunity
Building Details
Building Size
2,000 SF
Year Built
1955
Units
1
Listing Agency:
Coldwell Banker Realty
(269) 487-6389
Listed By:
Whitney Lents
(269) 487-6389
Source:
Homesforsaleinmich
Added: Oct 24, 2025
Changed: Aug 8
Last Checked: Aug 11 at 2:39PM
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 Realty
Investment Insights
Based on property information with market context.
This for-sale restaurant building is offered for the building only and is positioned to support dining and flexible layout needs. The property includes a spacious 20' x 40' addition for expanded dining or other adaptable uses, along with recent upgrades including a new roof and updated electrical.
The building is located directly across from Paw Paw Lake, in Coloma Charter Township, a gateway community for a major Southwest Michigan tourist destination.
Additional details about the interior configuration beyond the dining addition and the specific scope of the upgrades are not provided in the public remarks.
The building is located directly across from Paw Paw Lake, in Coloma Charter Township, a gateway community for a major Southwest Michigan tourist destination.
Additional details about the interior configuration beyond the dining addition and the specific scope of the upgrades are not provided in the public remarks.
Key Highlights
- Restaurant building for sale with a 20' x 40' addition
- New roof and updated electrical
- Year‑built: 1955
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
293
Businesses Nearby
49k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Wesco
Shops & Services
12,028 visits/mo
0.2 miles
BIGGBY COFFEE
Dining
7,924 visits/mo
0.3 miles
Mobil
Shops & Services
5,627 visits/mo
0.4 miles
Family Dollar
Shops & Services
4,449 visits/mo
0.3 miles
AutoZone
Shops & Services
3,301 visits/mo
0.3 miles
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 - Restaurant building for sale with a 20' x 40' addition and recent roof and electrical upgrades.
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: Restaurant building for sale with a 20' x 40' addition; New roof and updated electrical; Year‑built: 1955
