Ranch Breakfast &
For Sale
$399,000
Pending
516 E Grand River Avenue, Lansing, MI 48906
COMMERCIAL - Ranch - Lansing, MI
Property Size1,587 SF
Lot Size0.20 Acres
Days on Market2192
Property Features for 516 E Grand River Avenue
General Information
Property type
Commercial Sale
Property subtype
Single Family Residence
Zoning description
Zoning
Parking features
Garage
Exterior features
Lighting
Appliances
Cooktop, Dishwasher, Free-Standing Freezer, Gas Water Heater, Microwave, Range Hood, Refrigerator, Water Heater, Freezer
Lot features
Cleared, Gentle Sloping
Elementary school district
Lansing
Middle school district
Lansing
High school district
Lansing
Directions
Cedar to E Grand River Ave to Old Town Diner.
Standard status
Pending
APN
33-01-01-09-427-061 & 33-01-01-09-427-071
Size
1,587 SF
Lot size
0.20 Acres
Taxes and HOA fees
Tax Year
2020
Tax Description
LOT 3 BLOCK 15 ORIG PLAT
Tax Annual Amount
3535
Legal Description
LOT 3 BLOCK 15 ORIG PLAT
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Cooling system
Window Unit(s), Ceiling Fan(s), Central Air
Water source
Public
Building Details
Year built
1928
Floors in Building
1
Flooring type
Laminate, Tile - Ceramic
Building materials
Concrete
Roof type
Metal
Architectural style
Ranch
Additional Structures
Storage
Listing Agency:
Property Finders Realty · Weichert
(844) 224-7653
Listed By:
Jennifer L Saxton · License #20336
(517) 819-4148
Added: Aug 12, 2020
Changed: Aug 7
Last Checked: Aug 12 at 5:06PM
MLS# 248657
Copyright © 2026 Greater Lansing 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.
Old Town Diner is a ranch-style breakfast and diner opportunity with a spacious dining layout and a kitchen that was fully remodeled in 2007. The property features concrete construction, laminate and ceramic tile flooring, and a metal roof, with exterior lighting at the building. The facility is served by natural gas forced-air heat and cooling that includes central air, ceiling fans, and window unit(s).
Parking is available out front, with additional parking in the rear, and there is a 3-car garage in the back. Utilities include public water and public sewer. A range of kitchen appliances are included, such as a cooktop, microwave, dishwasher, range hood, refrigerator, and free-standing freezer(s), along with water heating via a gas water heater and water heater.
Set on a 0.2-acre lot, the building measures 1,587 square feet (per the provided property size). Viewing requires a 24-hour notice.
Parking is available out front, with additional parking in the rear, and there is a 3-car garage in the back. Utilities include public water and public sewer. A range of kitchen appliances are included, such as a cooktop, microwave, dishwasher, range hood, refrigerator, and free-standing freezer(s), along with water heating via a gas water heater and water heater.
Set on a 0.2-acre lot, the building measures 1,587 square feet (per the provided property size). Viewing requires a 24-hour notice.
Key Highlights
- Kitchen and diner fully remodeled in 2007
- Parking out front plus additional parking in the rear; 3‑car garage in back
- 0.2‑acre lot with 1,587 SF diner building
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
$16,968
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
4.25%
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%
$339,360
$339.4K
Cap Rate 7%
$242,400
$242.4K
Cap Rate 9%
$188,533
$188.5K
Market Conditions
NOI Build-Up for 1,587 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
$25.7K $16.20/SF
− Vacancy
−$3.1K −$1.94/SF
EGI
$22.6K $14.26/SF
− OpEx
−$5.7K −$3.56/SF
NOI
$17.0K $10.69/SF
Area
Lansing, MI
Vacancy
12.00%
Lease Rate
$16.20 /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%
$339,360
Cap Rate 7%
$242,400
Cap Rate 9%
$188,533
Alternative Uses
Best Use
Specialty Retail
$242.4K
$212.1K – $282.8K
NOI $16,968 @ 7.0% cap · market cap 4.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$326.7K
$285.8K – $381.1K
NOI $22,867 @ 7.0% cap · market cap 5.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
914
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48906, MI
25,674
Population
12,180
Households
2.1
Avg Household Size
37
Median Age
29%
College-Educated
91%
High-School Grad
32.5 sq mi
ZIP Area
790
Density / Sq Mi
$61,533
Median Household Income
$38,551
Median Earnings
$1,033
Median Rent
$128,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Breakfast & diner - Ranch-style diner with a fully remodeled interior and front and rear parking plus a 3-car garage.
Where is this breakfast & diner located?
The property is located at 516 E Grand River Avenue Lansing, MI.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: Kitchen and diner fully remodeled in 2007; Parking out front plus additional parking in the rear; 3‑car garage in back; 0.2‑acre lot with 1,587 SF diner building
