Listing Agency: Reichle | Klein Group Show Phone

Listed By: Jackie Harris Show Phone

Source: Moodyscre

Added: Dec 5, 2025 Changed: Sep 11 Last Checked: Sep 14 at 12:34PM

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Investment Insights

Based on property information with market context.

This freestanding restaurant building offers a practical layout with a restaurant bar, kitchen, and dining area. The property includes the plumbing, drainage, and utilities needed for food service and offers an existing configuration suitable for restaurant use, drive-through operations, or retail redevelopment.

The site is developed on 1.74 acres and features an ample parking lot to support customer access. The property is described as restaurant/retail-approved by zoning and infrastructure, with room for an adapted use depending on the tenant’s concept.

The listing notes an option for owner build-to-suit for a restaurant. As presented, the building and site improvements are intended to support restaurant and retail-related activity.

Key Highlights

• 4,042‑SF freestanding restaurant building on 1.74 acres, suited for restaurant use, drive‑thru, or retail redevelopment
• Includes restaurant bar, kitchen, and dining area
• Ample on‑site parking plus plumbing, drainage, and utilities in place

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

$39,370

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

7.95%

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%

$787,400 $787.4K

Cap Rate 7%

$562,429 $562.4K

Cap Rate 9%

$437,444 $437.4K

Market Conditions

NOI Build-Up for 4,042 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

$56.7K $14.04/SF

− Vacancy

−$4.3K −$1.05/SF

EGI

$52.5K $12.99/SF

− OpEx

−$13.1K −$3.25/SF

NOI

$39.4K $9.74/SF

Area

Monroe County, MI

Vacancy

7.50%

Lease Rate

$14.04 /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%

$787,400

Cap Rate 7%

$562,429

Cap Rate 9%

$437,444

Alternative Uses

Best Use

Specialty Retail

$562.4K

$492.1K – $656.2K (±1% cap)

NOI $39,370 @ 7.0% cap · market cap 7.95%

Second Best

—

—

no second resolved use

Theoretical Best

Warehouse

$4.17M

$3.65M – $4.86M (±1% cap)

NOI $291,817 @ 7.0% cap · market cap 58.95%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Conventional restaurants

Suggested Use

Top Pick Auto Parts Store Parking Lot & Garage Grocery & Convenience Store Mobile Phone Store Auto Repair Shop Electronics & Wireless Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 49267, MI

3,920

Population

1,593

Households

2.5

Avg Household Size

47

Median Age

28%

College-Educated

98%

High-School Grad

39.0 sq mi

ZIP Area

101

Density / Sq Mi

$96,389

Median Household Income

$43,281

Median Earnings

$858

Median Rent

$244,500

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Freestanding 4,042 SF restaurant building with bar, kitchen, dining areas, and ample on-site parking.

Where is this conventional restaurant located?

The property is located at 6437 New Us 223 Ottawa Lake, MI.

What is the asking price?

The asking price for this property is $495,000.

What are key features of this property?

This property features: 4,042‑SF freestanding restaurant building on 1.74 acres, suited for restaurant use, drive‑thru, or retail redevelopment; Includes restaurant bar, kitchen, and dining area; Ample on‑site parking plus plumbing, drainage, and utilities in place