Drive-Through Restaurant
For Sale
$550,000
701 N Stephenson Avenue, Iron Mountain, MI 49801
COM/IND/BUS OPP, Iron Mountain, MI
Property Size3,124 SF
Lot Size0.15 Acres
Price / SF$176.06
Days on Market146
Property Features for 701 N Stephenson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Parking features
Parking Lot, Off Street
Patio and Porch features
Patio
Exterior features
Deck/Patio, Lawn Sprinkler, Wheelchair Access, Fence Owned
Fencing
Fenced
Accessibility
Accessible Approach with Ramp
Subdivision
Gays Sub
Lot features
Corner Lot, Main Street, Cleared
Standard status
Active
Size
3,124 SF
Lot size
0.15 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
2200
Utilities
Heating system
Forced Air
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Amenities
central air
lawn sprinklers
full basement
vaulted tongue and groove ceilings
Building Details
Year built
1947
Roof type
Asphalt
Listing Agency:
HARRIS STATE WIDE
(906) 828-1099
Listed By:
HUGH HARRIS · License #UPAR
(906) 282-7348
Added: Apr 23
Changed: Sep 13
Last Checked: Sep 15 at 11:06AM
MLS# 50205210
Copyright © 2026 Upper Peninsula Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This drive-through restaurant property includes two commercial buildings on a 0.15-acre parcel, with 3,124 square feet of property size reported. Existing improvements include a drive-through, off-street parking lot, central air, forced-air heating, a commercial freezer, full basement, 200 amp electric service, lawn sprinklers, patio space, and vaulted tongue-and-groove ceilings. The property also has public water, an asphalt roof, owned fencing, and an accessible approach with ramp.
Located at 701 N Stephenson Avenue in Iron Mountain, the site has frontage on Main Street and Highway US2. One of the buildings is identified as the former Smoklers drive-through building and may be removed or sold separately if additional space is required. The 1947-built property is suited to continued restaurant use or other commercial occupancy supported by the existing improvements.
Located at 701 N Stephenson Avenue in Iron Mountain, the site has frontage on Main Street and Highway US2. One of the buildings is identified as the former Smoklers drive-through building and may be removed or sold separately if additional space is required. The 1947-built property is suited to continued restaurant use or other commercial occupancy supported by the existing improvements.
Key Highlights
- 3,124 square feet of property size on a 0.15‑acre parcel
- Two commercial buildings with an existing drive‑through
- Main Street and Highway US2 frontage at 701 N Stephenson Avenue
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
$34,746
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
6.32%
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%
$694,920
$694.9K
Cap Rate 7%
$496,371
$496.4K
Cap Rate 9%
$386,067
$386.1K
Market Conditions
NOI Build-Up for 3,124 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
$48.4K $15.48/SF
− Vacancy
−$2.0K −$0.65/SF
EGI
$46.3K $14.83/SF
− OpEx
−$11.6K −$3.71/SF
NOI
$34.7K $11.12/SF
Area
Dickinson 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%
$694,920
Cap Rate 7%
$496,371
Cap Rate 9%
$386,067
Alternative Uses
Best Use
Specialty Retail
$496.4K
$434.3K – $579.1K
NOI $34,746 @ 7.0% cap · market cap 6.32%
Second Best
Retail
$402.6K
$352.3K – $469.7K
NOI $28,183 @ 7.0% cap · market cap 5.12%
Theoretical Best
Office A
$602.3K
$527.0K – $702.7K
NOI $42,161 @ 7.0% cap · market cap 7.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
187
Businesses Nearby
46k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 85%
Dining 13%
Hotels & Casinos 2%
Kwik Trip
Shops & Services
33,563 visits/mo
0.2 miles
Dollar General
Shops & Services
5,925 visits/mo
0.2 miles
Hardee's
Dining
5,232 visits/mo
0.4 miles
A&W Restaurant
Dining
890 visits/mo
0.1 miles
Holiday Inn Express & Suites Iron Mountain
Hotels & Casinos
827 visits/mo
0.4 miles
Demographics for 49801, MI
11,479
Population
5,927
Households
1.9
Avg Household Size
46
Median Age
25%
College-Educated
95%
High-School Grad
123.9 sq mi
ZIP Area
93
Density / Sq Mi
$62,461
Median Household Income
$41,468
Median Earnings
$667
Median Rent
$157,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Two commercial buildings with parking, central air, and a drive-through configuration at a Main Street and US2 frontage location.
Where is this drive through restaurant located?
The property is located at 701 N Stephenson Avenue Iron Mountain, MI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 3,124 square feet of property size on a 0.15‑acre parcel; Two commercial buildings with an existing drive‑through; Main Street and Highway US2 frontage at 701 N Stephenson Avenue
