Remodeled Restaurant with
For Sale
$264,900
5610 109th Avenue, Pullman, MI 49450
Remodeled restaurant with newer equipment and a septic drain system, plus an included partially remodeled adjacent building.
Property Size1,080 SF
Days on Market173
Property Features for 5610 109th Avenue
General Information
Standard status
Active
Size
1,080 SF
Property subtype
Business Opportunity
Additional Details
Business Included
Yes
Sprinkler System
Yes
Commercial Hood
Yes
Taxes and HOA fees
Annual Taxes
$4,300
Building Details
Building Size
1,080 SF
Year Built
2004
Units
1
Listing Agency:
Berkshire Hathaway HomeServices Michigan Real Estate
(269) 208-1250
Listed By:
Trish King · License #6502349985
(269) 208-1250
Source:
Phgrealty
Added: Mar 4
Changed: Aug 24
Last Checked: Aug 23 at 8:03PM
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 Berkshire Hathaway HomeServices Michigan Real Estate
Investment Insights
Based on property information with market context.
This property includes a restaurant space that has been remodeled inside and out, along with newer equipment. The kitchen includes a fire compression system over fryer and a stoves system. The restaurant is described as fully operational, though it has not been in operation for a few years. The property also includes a septic drain system.
The drive area and land associated with the building next door are owned by CSX rail and are leased. An old hardware store building next door is included and belongs to the restaurant owner; it is partially remodeled with a new roof. The adjacent building does not currently have water. An extra lot out back is included in the sale, and it is noted that it could possibly be approved for a well.
Located at 5610 109th Avenue in Pullman, Michigan (Allegan County).
The drive area and land associated with the building next door are owned by CSX rail and are leased. An old hardware store building next door is included and belongs to the restaurant owner; it is partially remodeled with a new roof. The adjacent building does not currently have water. An extra lot out back is included in the sale, and it is noted that it could possibly be approved for a well.
Located at 5610 109th Avenue in Pullman, Michigan (Allegan County).
Key Highlights
- Restaurant property built in 2004, remodeled inside and out with newer equipment
- Includes fire compression system over fryer and stoves system
- Fully operational per listing (not been in operation for a few years)
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
$12,012
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
4.53%
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%
$240,240
$240.2K
Cap Rate 7%
$171,600
$171.6K
Cap Rate 9%
$133,467
$133.5K
Market Conditions
NOI Build-Up for 1,080 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
$16.7K $15.48/SF
− Vacancy
−$702 −$0.65/SF
EGI
$16.0K $14.83/SF
− OpEx
−$4.0K −$3.71/SF
NOI
$12.0K $11.12/SF
Area
Allegan 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%
$240,240
Cap Rate 7%
$171,600
Cap Rate 9%
$133,467
Alternative Uses
Best Use
Specialty Retail
$171.6K
$150.2K – $200.2K
NOI $12,012 @ 7.0% cap · market cap 4.53%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$10.14M
$8.87M – $11.83M
NOI $709,962 @ 7.0% cap · market cap 268.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Sprinkler system
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
62
Businesses Nearby
8k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Mobil
Shops & Services
4,241 visits/mo
0.0 miles
Dollar General
Shops & Services
4,181 visits/mo
0.1 miles
Demographics for 49450, MI
3,159
Population
1,610
Households
2
Avg Household Size
36
Median Age
18%
College-Educated
74%
High-School Grad
29.3 sq mi
ZIP Area
108
Density / Sq Mi
$48,809
Median Household Income
$31,897
Median Earnings
$1,205
Median Rent
$128,100
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?
Conventional restaurant - Remodeled restaurant with newer equipment and a septic drain system, plus an included partially remodeled adjacent building.
Where is this conventional restaurant located?
The property is located at 5610 109th Avenue Pullman, MI.
What is the asking price?
The asking price for this property is $264,900.
What are key features of this property?
This property features: Restaurant property built in 2004, remodeled inside and out with newer equipment; Includes fire compression system over fryer and stoves system; Fully operational per listing (not been in operation for a few years)
