Restaurant and Catering
For Sale
$501,000
5556 E M 21, Saint Johns, MI 48879
Operating catering setup with a commercial kitchen, bar, and dining area on land with tillable acreage and wooded space.
Property Size4,250 SF
Lot Size20.00 Acres
Price / SF$117.88
Days on Market140
Property Features for 5556 E M 21
General Information
Standard status
Active
Size
4,250 SF
Lot size
20.00 Acres
Additional Details
Business Included
Yes
Commercial Hood
Yes
Listing Agency:
CENTURY 21 LEE-MAC REALTY
(989) 463-6085
Listed By:
Bob Fall · License #6506049037
(989) 463-6085
Source:
Exprealty
Added: Mar 25
Changed: Jul 10
Last Checked: Aug 11 at 10:41AM
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 CENTURY 21 LEE-MAC REALTY
Investment Insights
Based on property information with market context.
This versatile restaurant and catering facility is currently operating as a catering business and is built around a commercial kitchen, bar, and spacious dining area. The property includes a large 40x60 pole barn for added storage or operational flexibility. Recent capital improvements include a new roof in 2023, new rooftop HVAC units in 2023, and a new drain field completed in 2026, supporting long-term operability.
Located on highly traveled M-21 in St. Johns, the site offers visibility and traffic exposure for hospitality, events, or other food service concepts. The property is set on 20 acres, with approximately 15 acres described as tillable and 10 wooded acres intended to provide privacy, recreation, and natural setting.
For buyers seeking a food service operation with an event-ready interior, this setup provides the core restaurant components in place. The land configuration also supports agricultural use or potential lease opportunities tied to the tillable acreage, while the wooded acreage can support a more private outdoor environment for certain use cases. The combination of an operating kitchen buildout, recent system updates, and on-site acreage may appeal to buyers looking to continue catering operations or broaden the property’s hospitality footprint.
Located on highly traveled M-21 in St. Johns, the site offers visibility and traffic exposure for hospitality, events, or other food service concepts. The property is set on 20 acres, with approximately 15 acres described as tillable and 10 wooded acres intended to provide privacy, recreation, and natural setting.
For buyers seeking a food service operation with an event-ready interior, this setup provides the core restaurant components in place. The land configuration also supports agricultural use or potential lease opportunities tied to the tillable acreage, while the wooded acreage can support a more private outdoor environment for certain use cases. The combination of an operating kitchen buildout, recent system updates, and on-site acreage may appeal to buyers looking to continue catering operations or broaden the property’s hospitality footprint.
Key Highlights
- Nearly 5,000 sq. ft. commercial facility operating as a catering business with commercial kitchen, bar, and spacious dining area
- Located on 20 acres along M‑21 in St. Johns, with agricultural and wooded acreage for added flexibility
- Approximately 15 acres are tillable for potential agricultural or lease income; 10 wooded acres provide privacy and recreation space
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
$23,562
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
4.70%
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%
$471,240
$471.2K
Cap Rate 7%
$336,600
$336.6K
Cap Rate 9%
$261,800
$261.8K
Market Conditions
NOI Build-Up for 4,250 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
$38.3K $9.00/SF
− Vacancy
−$4.6K −$1.08/SF
EGI
$33.7K $7.92/SF
− OpEx
−$10.1K −$2.38/SF
NOI
$23.6K $5.54/SF
Area
Clinton County, MI
Vacancy
12.00%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$471,240
Cap Rate 7%
$336,600
Cap Rate 9%
$261,800
Alternative Uses
Best Use
Specialty Retail
$668.4K
$584.9K – $779.9K
NOI $46,791 @ 7.0% cap · market cap 9.34%
Second Best
Industrial
$336.6K
$294.5K – $392.7K
NOI $23,562 @ 7.0% cap · market cap 4.70%
Theoretical Best
Office A
$865.1K
$756.9K – $1.01M
NOI $60,554 @ 7.0% cap · market cap 12.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
534
Businesses Nearby
18k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 96%
Dining 4%
Dollar General
Shops & Services
7,016 visits/mo
0.2 miles
Marathon Petroleum
Shops & Services
4,280 visits/mo
0.1 miles
AutoZone
Shops & Services
2,541 visits/mo
0.1 miles
Huntington Bank
Shops & Services
2,334 visits/mo
0.4 miles
Carquest Auto Parts
Shops & Services
1,108 visits/mo
0.4 miles
Demographics for 48879, MI
17,980
Population
7,521
Households
2.4
Avg Household Size
42
Median Age
23%
College-Educated
95%
High-School Grad
191.3 sq mi
ZIP Area
94
Density / Sq Mi
$78,845
Median Household Income
$46,934
Median Earnings
$884
Median Rent
$215,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Operating catering setup with a commercial kitchen, bar, and dining area on land with tillable acreage and wooded space.
Where is this commercial kitchen located?
The property is located at 5556 E M 21 Saint Johns, MI.
What is the asking price?
The asking price for this property is $501,000.
What are key features of this property?
This property features: Nearly 5,000 sq. ft. commercial facility operating as a catering business with commercial kitchen, bar, and spacious dining area; Located on 20 acres along M‑21 in St. Johns, with agricultural and wooded acreage for added flexibility; Approximately 15 acres are tillable for potential agricultural or lease income; 10 wooded acres provide privacy and recreation space
