Downtown Restaurant
For Sale
$297,000
557 W Western Ave, Muskegon, MI 49440
Historic-district building with restaurant and specialty food-service history near Muskegon Lake.
Property Size1,131 SF
Price / SF$262.60
Days on Market28
Property Features for 557 W Western Ave
General Information
Standard status
Active
Size
1,131 SF
Building Details
Year Built
1900
Listing Agency:
Besteman Properties Group Inc.
(616) 890-0198
Listed By:
Mark Besteman, Susan Besteman · License #6502417127
Source:
Katie-k
Added: Aug 3
Changed: Aug 29
Last Checked: Aug 29 at 11:34AM
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 Besteman Properties Group Inc.
Investment Insights
Based on property information with market context.
Built in 1900, this downtown Muskegon building is positioned within the Muskegon Historic District and has supported restaurant and specialty food-service operations, including ice cream and sandwich service. The property sits between the Muskegon Heritage Museum of Business & Industry and Mike's Tavern, with views toward Muskegon Lake and cruise ships.
The surrounding downtown setting includes activity at Muskegon Lumberjacks games, performances at the Frauenthal Center, and Bike Time events. The property address is 557 W Western Ave, Muskegon, MI 49440.
The surrounding downtown setting includes activity at Muskegon Lumberjacks games, performances at the Frauenthal Center, and Bike Time events. The property address is 557 W Western Ave, Muskegon, MI 49440.
Key Highlights
- Restaurant and ice cream/sandwich shop history
- Located in the Muskegon Historic District
- Views of Muskegon Lake and cruise ships
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
$14,620
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
4.92%
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%
$292,400
$292.4K
Cap Rate 7%
$208,857
$208.9K
Cap Rate 9%
$162,444
$162.4K
Market Conditions
NOI Build-Up for 1,131 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
$21.4K $18.96/SF
− Vacancy
−$558 −$0.49/SF
EGI
$20.9K $18.47/SF
− OpEx
−$6.3K −$5.54/SF
NOI
$14.6K $12.93/SF
Area
Muskegon County, MI
Vacancy
2.60%
Lease Rate
$18.96 /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%
$292,400
Cap Rate 7%
$208,857
Cap Rate 9%
$162,444
Alternative Uses
Best Use
Retail
$208.9K
$182.8K – $243.7K
NOI $14,620 @ 7.0% cap · market cap 4.92%
Second Best
Specialty Retail
$179.7K
$157.2K – $209.7K
NOI $12,579 @ 7.0% cap · market cap 4.24%
Theoretical Best
Hotel Hospitality
$10.62M
$9.29M – $12.39M
NOI $743,488 @ 7.0% cap · market cap 250.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,223
Businesses Nearby
3k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Shell
Shops & Services
3,232 visits/mo
0.3 miles
Demographics for 49440, MI
1,320
Population
860
Households
1.5
Avg Household Size
44
Median Age
36%
College-Educated
93%
High-School Grad
0.6 sq mi
ZIP Area
2,200
Density / Sq Mi
$42,500
Median Household Income
$37,067
Median Earnings
$791
Median Rent
$163,100
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 - Historic-district building with restaurant and specialty food-service history near Muskegon Lake.
Where is this conventional restaurant located?
The property is located at 557 W Western Ave Muskegon, MI.
What is the asking price?
The asking price for this property is $297,000.
What are key features of this property?
This property features: Restaurant and ice cream/sandwich shop history; Located in the Muskegon Historic District; Views of Muskegon Lake and cruise ships
