Renovated Restaurant with Event
New
For Sale
$600,000
8725 Water Street, Montague, MI 49437
Commercial Sale, Montague, MI
Property Size4,000 SF
Lot Size0.17 Acres
Price / SF$150
Days on Market2
Property Features for 8725 Water Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
C-1 Com
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 3, Bathroom 2, Bathroom 1
Parking
10
Interior features
Broadband
Elementary school district
Montague
Middle school district
Montague
High school district
Montague
Directions
US-31 to Colby Street west. Continue across the bridge into Montague, turn right at the traffic light onto Water Street. Property is on the right at 8725 Water Street.
Standard status
Active
APN
21-161-013-0013-00
Size
4,000 SF
Lot size
0.17 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
MONTAGUE CITY NELY 1/2 OF LOT 13 & ENTIRE LOT 14 BLK 13
Tax Annual Amount
9246
Legal Description
MONTAGUE CITY NELY 1/2 OF LOT 13 & ENTIRE LOT 14 BLK 13
Utilities
Utilities
Cable Available
Heating system
Forced Air
Cooling system
Central Air
Amenities
public restrooms with shower
access/garage door to alley
exterior mural
direct connection to Social District
Building Details
Year built
1960
Number of units
1
Building materials
Block, Brick
Roof type
Composition, Rubber
Listing Agency:
Lakeshore Connection Real Est.
(231) 780-8436
Listed By:
Bradley Irey
(231) 670-6098
Added: Aug 21
Last Checked: Aug 22 at 1:06AM
MLS# 26044423
Copyright © 2026 Michigan Regional Information Center, LLC. 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 approximately 4,000-square-foot restaurant property includes a modern commercial kitchen, built-in bar, dining areas, three public restrooms, and a dedicated event room. The kitchen features cooking, refrigeration, preparation, ventilation, specialty pizza, commercial hood, and fire-suppression equipment. Furniture, fixtures, and equipment are included in the sale subject to an agreed inventory. Interior renovations began in 2024, with the event area completed in 2026 with new flooring, finished walls, and a finished ceiling.
The building fronts Water Street in downtown Montague and connects directly to Weathervane Lane, including an access door from the event area and an exterior mural. The property is within Montague's Social District, one block from White Lake, and near city and public parking. Approximately 10 on-site parking spaces are available. Indoor capacity totals 99 guests, including 50 in the restaurant and up to 49 in the event area. Existing business and alcohol licenses are excluded from the sale.
The building fronts Water Street in downtown Montague and connects directly to Weathervane Lane, including an access door from the event area and an exterior mural. The property is within Montague's Social District, one block from White Lake, and near city and public parking. Approximately 10 on-site parking spaces are available. Indoor capacity totals 99 guests, including 50 in the restaurant and up to 49 in the event area. Existing business and alcohol licenses are excluded from the sale.
Key Highlights
- Approximately 4,000 SF restaurant property on a 0.17‑acre lot
- Indoor capacity for 99 guests: 50 in the restaurant and up to 49 in the event area
- Modern commercial kitchen with specialty pizza equipment, commercial hood, and fire‑suppression components
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
Commercial hood
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Equipped commercial kitchen, built-in bar, and indoor seating for up to 99 guests.
Where is this conventional restaurant located?
The property is located at 8725 Water Street 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 on a 0.17‑acre lot; Indoor capacity for 99 guests: 50 in the restaurant and up to 49 in the event area; Modern commercial kitchen with specialty pizza equipment, commercial hood, and fire‑suppression components
