Restaurant Property with Event
For Sale
$600,000
8725 Water St, Montague, MI 49437
Renovated venue includes a commercial kitchen, built-in bar, dining areas, and three public restrooms.
Property Size4,000 SF
Price / SF$150
Days on Market10
Property Features for 8725 Water St
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Commercial
Restaurant
Seating Capacity
99
Equipment Included
Yes
Liquor License
No
Additional Details
Furnished
Yes
Road Access
Yes
Amenities
accessible restroom with shower
mural
social district connection
garage door to alley
Building Details
Year Built
1960
Year Renovated
2026
Construction
brick and block
Listing Agency:
Lakeshore Connection Real Est.
(231) 670-6098
Listed By:
Bradley Irey
Source:
Metrodetroithomeguide
Added: Aug 19
Changed: Aug 28
Last Checked: Aug 28 at 6:46AM
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 Lakeshore Connection Real Est.
Investment Insights
Based on property information with market context.
This approximately 4,000 SF restaurant property combines a modern commercial kitchen, built-in bar, dining areas, and a dedicated event room completed in 2026. The interior was renovated and reconfigured beginning in 2024, while the event area received new flooring, finished walls, and a finished ceiling. Indoor capacity is 99, supporting restaurant seating or private gatherings. The property also has three public restrooms, including accessible facilities and one restroom with a shower.
Positioned on busy Water Street in downtown Montague, the property is a block from White Lake and minutes from Lake Michigan beaches. A mural extends along Weathervane Lane, where the building connects directly with Montague's Social District. An access/garage door opens to the alley, adding flexibility for dining, events, and entertainment. City and public parking are nearby. The sale includes the real estate and agreed furniture, fixtures, and equipment; existing business and alcohol licenses are excluded.
Positioned on busy Water Street in downtown Montague, the property is a block from White Lake and minutes from Lake Michigan beaches. A mural extends along Weathervane Lane, where the building connects directly with Montague's Social District. An access/garage door opens to the alley, adding flexibility for dining, events, and entertainment. City and public parking are nearby. The sale includes the real estate and agreed furniture, fixtures, and equipment; existing business and alcohol licenses are excluded.
Key Highlights
- Approximately 4,000 SF restaurant property in downtown Montague
- Modern commercial kitchen, built‑in bar, dining areas, and 2026 event space
- Interior renovation and reconfiguration began in 2024
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
$44,490
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
7.41%
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%
$889,800
$889.8K
Cap Rate 7%
$635,571
$635.6K
Cap Rate 9%
$494,333
$494.3K
Market Conditions
NOI Build-Up for 4,000 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
$61.9K $15.48/SF
− Vacancy
−$2.6K −$0.65/SF
EGI
$59.3K $14.83/SF
− OpEx
−$14.8K −$3.71/SF
NOI
$44.5K $11.12/SF
Area
Muskegon 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%
$889,800
Cap Rate 7%
$635,571
Cap Rate 9%
$494,333
Alternative Uses
Best Use
Specialty Retail
$635.6K
$556.1K – $741.5K
NOI $44,490 @ 7.0% cap · market cap 7.41%
Second Best
Industrial
$548.1K
$479.6K – $639.5K
NOI $38,369 @ 7.0% cap · market cap 6.39%
Theoretical Best
Hotel Hospitality
$37.56M
$32.87M – $43.82M
NOI $2,629,489 @ 7.0% cap · market cap 438.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
360
Businesses Nearby
13k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Wesco
Shops & Services
10,744 visits/mo
0.4 miles
Comerica Bank
Shops & Services
1,129 visits/mo
0.1 miles
Napa Auto Parts
Shops & Services
922 visits/mo
0.5 miles
Demographics for 49437, MI
6,928
Population
3,229
Households
2.1
Avg Household Size
45
Median Age
26%
College-Educated
96%
High-School Grad
65.6 sq mi
ZIP Area
106
Density / Sq Mi
$77,224
Median Household Income
$39,356
Median Earnings
$772
Median Rent
$201,100
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 - Renovated venue includes a commercial kitchen, built-in bar, dining areas, and three public restrooms.
Where is this conventional restaurant located?
The property is located at 8725 Water St Montague, MI.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Approximately 4,000 SF restaurant property in downtown Montague; Modern commercial kitchen, built‑in bar, dining areas, and 2026 event space; Interior renovation and reconfiguration began in 2024
