Freestanding Quick-Service
For Sale
$1,402,123
720 E Front St, Traverse City, MI 49686
Taco Bell occupies the property under a 20-year absolute NNN lease agreement.
Property Size3,194 SF
Lot Size0.61 Acres
Price / SF$438.99
Days on Market106
Property Features for 720 E Front St
General Information
Standard status
Active
Size
3,194 SF
Lot size
0.61 Acres
Property subtype
Retail - Restaurant
Net Operating Income
$91,138
Building Details
Building Size
3,194 SF
Year Built
1994
Listing Agency:
Fortis Net Lease
(248) 254-3406
Listed By:
Robert Bender · License #6501323470
Source:
Commercialcafe
Added: May 18
Changed: Aug 29
Last Checked: Aug 30 at 1:10PM
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 Fortis Net Lease
Investment Insights
Based on property information with market context.
The property is a freestanding quick-service restaurant at 720 E Front St in Traverse City, Michigan. Built in 1994, the building contains approximately 3,194 square feet and occupies a 0.61-acre parcel. Taco Bell is the tenant under a newly structured 20-year absolute NNN lease, placing responsibility for most property expenses with the tenant under the stated lease structure.
The site is positioned within a high-traffic commercial corridor along Front Street, with visibility and access identified as key physical attributes. Traverse City’s seasonal tourism and established retail activity contribute to the surrounding commercial setting. The property combines a single-tenant restaurant format, a long-term lease term, and a nationally recognized quick-service restaurant brand.
The site is positioned within a high-traffic commercial corridor along Front Street, with visibility and access identified as key physical attributes. Traverse City’s seasonal tourism and established retail activity contribute to the surrounding commercial setting. The property combines a single-tenant restaurant format, a long-term lease term, and a nationally recognized quick-service restaurant brand.
Key Highlights
- Approximately 3,194 SF freestanding quick‑service restaurant
- 0.61‑acre parcel in Traverse City, Michigan
- Taco Bell tenant under a newly structured 20‑year absolute NNN lease
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
$42,694
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
3.04%
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%
$853,880
$853.9K
Cap Rate 7%
$609,914
$609.9K
Cap Rate 9%
$474,378
$474.4K
Market Conditions
NOI Build-Up for 3,194 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
$60.6K $18.96/SF
− Vacancy
−$3.6K −$1.14/SF
EGI
$56.9K $17.82/SF
− OpEx
−$14.2K −$4.46/SF
NOI
$42.7K $13.37/SF
Area
Grand Traverse County, MI
Vacancy
6.00%
Lease Rate
$18.96 /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%
$853,880
Cap Rate 7%
$609,914
Cap Rate 9%
$474,378
Alternative Uses
Best Use
Specialty Retail
$609.9K
$533.7K – $711.6K
NOI $42,694 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$693.8K
$607.1K – $809.5K
NOI $48,569 @ 7.0% cap · market cap 3.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,789
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 50%
Home Improvements & Furnishings 32%
Hotels & Casinos 18%
Speedway
Shops & Services
11,773 visits/mo
0.1 miles
Ace Hardware
Home Improvements & Furnishings
10,142 visits/mo
0.1 miles
Hotel Indigo Traverse City
Hotels & Casinos
5,501 visits/mo
0.4 miles
Huntington Bank
Shops & Services
3,876 visits/mo
0.2 miles
Demographics for 49686, MI
25,859
Population
13,261
Households
2
Avg Household Size
45
Median Age
46%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
547
Density / Sq Mi
$71,198
Median Household Income
$40,373
Median Earnings
$1,209
Median Rent
$295,500
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 - Taco Bell occupies the property under a 20-year absolute NNN lease agreement.
Where is this conventional restaurant located?
The property is located at 720 E Front St Traverse City, MI.
What is the asking price?
The asking price for this property is $1,402,123.
What are key features of this property?
This property features: Approximately 3,194 SF freestanding quick‑service restaurant; 0.61‑acre parcel in Traverse City, Michigan; Taco Bell tenant under a newly structured 20‑year absolute NNN lease
