Turn-Key Restaurant with Living
For Sale
$699,000
7515 S U.S 31 Highway, Alanson, MI 49706
COMMERCIAL - Alanson, MI
Property Size5,317 SF
Price / SF$131.47
Days on Market93
Property Features for 7515 S U.S 31 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-1
Parking features
Parking Lot
Basement
Crawl Space, Partial, Block, Full
Subdivision
T35N, R4W
Directions
On US 31 in downtown Alanson. Located on the east side of the highway north of River Street.
Standard status
Active
APN
41-17-10-301-014, 012, and 015
Size
5,317 SF
Taxes and HOA fees
Tax Description
VILLAGE OF ALANSON, BLK 7, LOT 4. SECTION 10, T35N, R4W. VILLAGE OF ALANSON, BLK 7, LOT 3. SECTION 10, T35N, R4W. VILLAGE OF ALANSON, BLK 7, S 1/2 OF LOTS 9, 10 & 11. SECTION 10, T35N, R4W.
Legal Description
VILLAGE OF ALANSON, BLK 7, LOT 4. SECTION 10, T35N, R4W. VILLAGE OF ALANSON, BLK 7, LOT 3. SECTION 10, T35N, R4W. VILLAGE OF ALANSON, BLK 7, S 1/2 OF LOTS 9, 10 & 11. SECTION 10, T35N, R4W.
Utilities
Water source
Well
Amenities
living quarters
basement storage
Building Details
Floors in Building
2
Building materials
Block
Listing Agency:
Coldwell Banker Fairbairn Realty · Coldwell Banker Real Estate
(231) 548-9336
Listed By:
Craig R. Wilson
(231) 548-9336
Added: May 28
Changed: Aug 4
Last Checked: Aug 28 at 5:06AM
MLS# 201840394
Copyright © 2026 Water Wonderland Board 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 turn-key restaurant, known as BOBS PLACE, offers a piece of Northern Michigan history. The property features exceptional highway visibility, with an average of 15,300 cars passing daily. The fully equipped establishment includes a complete bar area, a spacious dining room, and a back room suitable for hosting parties. Living quarters are located upstairs, making it ideal for owner occupancy or staff housing. Basement storage is also available. Recent upgrades include a newer furnace and AC unit, including an air-conditioned kitchen, as well as electrical system upgrades and newer kitchen equipment. The sale includes a Resort Liquor License and two additional lots that offer expansion possibilities for outdoor seating or parking. The property size is 5317 square feet. Inventory is included. The zoning is B-1. The property is located in Alanson, MI, near the Crooked River.
Key Highlights
- Turn‑key restaurant with Resort Liquor License included.
- Exceptional highway visibility (15,300 cars daily).
- Fully equipped with bar, dining room, and party room.
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
$44,982
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
6.44%
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%
$899,640
$899.6K
Cap Rate 7%
$642,600
$642.6K
Cap Rate 9%
$499,800
$499.8K
Market Conditions
NOI Build-Up for 5,317 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
$63.8K $12.00/SF
− Vacancy
−$3.8K −$0.72/SF
EGI
$60.0K $11.28/SF
− OpEx
−$15.0K −$2.82/SF
NOI
$45.0K $8.46/SF
Area
Emmet County, MI
Vacancy
6.00%
Lease Rate
$12.00 /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%
$899,640
Cap Rate 7%
$642,600
Cap Rate 9%
$499,800
Alternative Uses
Best Use
Specialty Retail
$642.6K
$562.3K – $749.7K
NOI $44,982 @ 7.0% cap · market cap 6.44%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.20M
$1.05M – $1.40M
NOI $84,230 @ 7.0% cap · market cap 12.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15,300 VPD
Traffic count
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
136
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 49706, MI
5,062
Population
2,893
Households
1.7
Avg Household Size
42
Median Age
22%
College-Educated
92%
High-School Grad
58.5 sq mi
ZIP Area
87
Density / Sq Mi
$63,573
Median Household Income
$37,105
Median Earnings
$943
Median Rent
$208,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully equipped restaurant with living space and expansion potential.
Where is this conventional restaurant located?
The property is located at 7515 S U.S 31 Highway Alanson, MI.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Turn‑key restaurant with Resort Liquor License included.; Exceptional highway visibility (15,300 cars daily).; Fully equipped with bar, dining room, and party room.
