Established Party Store Business
For Sale
Contact for pricing
6998 US-2, Gladstone, MI 49837
Turn-key party store with growth potential in prime location.
Property Size1,500 SF
Lot Size0.29 Acres
Price / SF$233.27
Days on Market688
Property Features for 6998 US-2
General Information
Standard status
Active
Size
1,500 SF
Total Parking Spaces
15
Lot size
0.29 Acres
Property subtype
Retail
Zoning
Commercial
Occupancy
100%
Investment Type
Owner/User
Building Details
Year Built
1977
Buildings
1
Stories
1
Units
1
Listing Agency:
Stephens Real Estate
(906) 774-8570
Listed By:
Ryan Gordon · License #MI 6502420131
Source:
Crexi
Added: Oct 3, 2024
Changed: Aug 20
Last Checked: Aug 20 at 3:23PM
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 Stephens Real Estate
Investment Insights
Based on property information with market context.
This established party store presents a business opportunity with growth potential. The property benefits from excellent visibility, high traffic counts, and convenient access, complemented by ample parking. The existing business has a strong reputation and a steady customer base, offering immediate income generation. The 1,500-square-foot building is situated on a 0.29-acre lot, providing space for potential expansion. The sale includes equipment, inventory, a security system, and all necessary licenses. The location is suited for a new owner to expand product offerings, increase marketing efforts, and capitalize on tourism to further boost sales.
Key Highlights
- Prime location with excellent visibility and high traffic
- Turn‑key business with a strong reputation and steady customer base
- Huge growth potential through expanded product offerings and marketing
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
$19,724
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
5.64%
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%
$394,480
$394.5K
Cap Rate 7%
$281,771
$281.8K
Cap Rate 9%
$219,156
$219.2K
Market Conditions
NOI Build-Up for 1,500 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
$27.0K $18.00/SF
− Vacancy
−$702 −$0.47/SF
EGI
$26.3K $17.53/SF
− OpEx
−$6.6K −$4.38/SF
NOI
$19.7K $13.15/SF
Area
Delta County, MI
Vacancy
2.60%
Lease Rate
$18.00 /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%
$394,480
Cap Rate 7%
$281,771
Cap Rate 9%
$219,156
Alternative Uses
Best Use
Specialty Retail
$281.8K
$246.6K – $328.7K
NOI $19,724 @ 7.0% cap · market cap 5.64%
Second Best
Retail
$184.7K
$161.6K – $215.5K
NOI $12,931 @ 7.0% cap · market cap 3.70%
Theoretical Best
Office A
$293.6K
$256.9K – $342.6K
NOI $20,555 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49837, MI
10,086
Population
4,488
Households
2.2
Avg Household Size
48
Median Age
24%
College-Educated
95%
High-School Grad
69.0 sq mi
ZIP Area
146
Density / Sq Mi
$65,905
Median Household Income
$35,156
Median Earnings
$782
Median Rent
$145,300
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?
Grocery and convenience store - Turn-key party store with growth potential in prime location.
Where is this grocery and convenience store located?
The property is located at 6998 US-2 Gladstone, MI.
What is the asking price?
The asking price for this property is $349,900.
What are key features of this property?
This property features: Prime location with excellent visibility and high traffic; Turn‑key business with a strong reputation and steady customer base; Huge growth potential through expanded product offerings and marketing
