Downtown Muskegon Restaurant
For Sale
$297,000
557 W Western Avenue, Muskegon, MI 49440
Restaurant building for sale in the Historic District.
Property Size1,131 SF
Price / SF$262.60
Days on Market105
Property Features for 557 W Western Avenue
General Information
Standard status
Active
Size
1,131 SF
Property subtype
Commercial
Lease Term
Cash, Conventional
Taxes and HOA fees
Annual Taxes
$4,006
Building Details
Building Size
1,131 SF
Year Built
1900
Units
1
Listing Agency:
Besteman Properties Group Inc.
(616) 446-5125
Listed By:
Mark Besteman · License #6502417127
(616) 446-5125
Source:
Sabudarealty
Added: May 12
Changed: Aug 23
Last Checked: Aug 23 at 8:26AM
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.
Located in the downtown Muskegon Historic District, the property at 557 W Western Avenue is available for sale. The building is situated between the Muskegon Heritage Museum of Business & Industry and Mike's Tavern. It has a history of successful operation as a restaurant and an ice cream/sandwich shop. The location offers views of Muskegon Lake and cruise ships. The property benefits from its proximity to various activities and attractions, including Muskegon Lumberjacks games at the arena, shows at the Frauenthal Center, and Bike Time.
Key Highlights
- Proven track record as a successful restaurant and ice cream/sandwich shop.
- Located in the desirable downtown Muskegon Historic District.
- Enjoy Muskegon Lake and cruise ship views.
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
$12,579
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
4.24%
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%
$251,580
$251.6K
Cap Rate 7%
$179,700
$179.7K
Cap Rate 9%
$139,767
$139.8K
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
$17.5K $15.48/SF
− Vacancy
−$735 −$0.65/SF
EGI
$16.8K $14.83/SF
− OpEx
−$4.2K −$3.71/SF
NOI
$12.6K $11.12/SF
Area
Muskegon 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%
$251,580
Cap Rate 7%
$179,700
Cap Rate 9%
$139,767
Alternative Uses
Best Use
Specialty Retail
$179.7K
$157.2K – $209.7K
NOI $12,579 @ 7.0% cap · market cap 4.24%
Second Best
—
—
no second resolved use
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
Balanced
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.
Similar Off Market Nearby
- Best Coast Catering — 242 W Western Ave, Muskegon, MI 49440
- Soul Filled Catering And Private Chef Services — 221 W Webster Ave, Muskegon, MI 49442
- Carnival Hot Dogs and Catering — 1478 Beidler St apt 1/2, Muskegon, MI 49441
Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant building for sale in the Historic District.
Where is this restaurant located?
The property is located at 557 W Western Avenue 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: Proven track record as a successful restaurant and ice cream/sandwich shop.; Located in the desirable downtown Muskegon Historic District.; Enjoy Muskegon Lake and cruise ship views.
