Building Details

Building Size 1,508 SF

Listing Agency: Keller Williams Northern Michigan Properties

Listed By: Leah Jackson · License #6501371812 Show Phone

Source: Cpix.resimplifi

Added: May 31 Changed: Sep 18 Last Checked: Sep 19 at 5:48AM

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Investment Insights

Based on property information with market context.

This 1,508-square-foot conventional restaurant includes a dining area configured for approximately 50 seats and features a fireplace. The sale includes food-service equipment, bar equipment, and full furnishings, providing a substantially equipped operating setup. A Class C liquor license is also included.

The property is located at 7481 Co Rd 415 in McMillan, Michigan, with Commercial zoning. The source information also identifies M-28 access and recreational activity associated with nearby lakes, trails, and outdoor destinations.

Key Highlights

• 1,508‑square‑foot restaurant property
• Dining area seats approximately 50
• Includes food‑service and bar equipment

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

$20,886

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

8.39%

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%

$417,720 $417.7K

Cap Rate 7%

$298,371 $298.4K

Cap Rate 9%

$232,067 $232.1K

Market Conditions

NOI Build-Up for 1,508 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

$28.6K $18.96/SF

− Vacancy

−$743 −$0.49/SF

EGI

$27.8K $18.47/SF

− OpEx

−$7.0K −$4.62/SF

NOI

$20.9K $13.85/SF

Area

St. Clair County, MI

Vacancy

2.60%

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%

$417,720

Cap Rate 7%

$298,371

Cap Rate 9%

$232,067

Alternative Uses

Best Use

Specialty Retail

$298.4K

$261.1K – $348.1K (±1% cap)

NOI $20,886 @ 7.0% cap · market cap 8.39%

Second Best

—

—

no second resolved use

Theoretical Best

Multifamily LT 5

$1.13M

$992.0K – $1.32M (±1% cap)

NOI $79,356 @ 7.0% cap · market cap 31.87%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Conventional restaurants

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 49853, MI

1,282

Population

1,189

Households

1.1

Avg Household Size

54

Median Age

24%

College-Educated

95%

High-School Grad

169.0 sq mi

ZIP Area

8

Density / Sq Mi

$59,405

Median Household Income

$26,154

Median Earnings

$725

Median Rent

$189,500

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

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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 - Furnished restaurant with food-service equipment, bar equipment, and a Class C liquor license.

Where is this conventional restaurant located?

The property is located at 7481 Co Rd 415 McMillan, MI.

What is the asking price?

The asking price for this property is $249,000.

What are key features of this property?

This property features: 1,508‑square‑foot restaurant property; Dining area seats approximately 50; Includes food‑service and bar equipment