Renovated Restaurant With Entertainment
New
For Sale
$2,500,000
8849 GRATIOT RD, Saginaw, MI 48609
Renovated restaurant property with a commercial kitchen, billiards, axe throwing lanes, and a Class C liquor license.
Property Size25,168 SF
Lot Size2.55 Acres
Price / SF$99.33
Days on Market7
Property Features for 8849 GRATIOT RD
General Information
Standard status
Active
Size
25,168 SF
Lot size
2.55 Acres
Property subtype
Industrial
Zoning
B-4
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Sprinkler System
Yes
Liquor License
Yes
Amenities
111078
Building Details
Year Built
1970
Buildings
1
Listing Agency:
The Miller Group
(989) 751-7288
Listed By:
Paul Burback · License #6506048895
(989) 751-7288
Source:
Xome
Added: Aug 25
Changed: Aug 31
Last Checked: Aug 31 at 2:49PM
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 The Miller Group
Investment Insights
Based on property information with market context.
This 25,168-square-foot conventional restaurant property was built in 1970 and comprehensively renovated throughout the interior and exterior. The layout combines a large dining area, dedicated commercial kitchen space, and an entertainment wing with axe throwing lanes and billiards. A building-wide fire suppression system is installed, supporting restaurant, assembly, and entertainment occupancy configurations.
The property includes both parcels, totaling 2.55 acres, along Gratiot Road (M-46) in Thomas Township, Saginaw County. On-site parking is provided, and B-4 zoning supports the stated restaurant, brewpub, family entertainment, and event venue uses. A Class C liquor license is included with the sale.
The property includes both parcels, totaling 2.55 acres, along Gratiot Road (M-46) in Thomas Township, Saginaw County. On-site parking is provided, and B-4 zoning supports the stated restaurant, brewpub, family entertainment, and event venue uses. A Class C liquor license is included with the sale.
Key Highlights
- 25,168‑square‑foot restaurant and entertainment facility on 2.55 acres
- Comprehensively renovated inside and out
- Dedicated entertainment wing with axe throwing lanes and billiards
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
$131,234
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
5.25%
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%
$2,624,680
$2.6M
Cap Rate 7%
$1,874,771
$1.9M
Cap Rate 9%
$1,458,156
$1.5M
Market Conditions
NOI Build-Up for 25,168 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
$196.3K $7.80/SF
− Vacancy
−$8.8K −$0.35/SF
EGI
$187.5K $7.45/SF
− OpEx
−$56.2K −$2.23/SF
NOI
$131.2K $5.21/SF
Area
Saginaw County, MI
Vacancy
4.50%
Lease Rate
$7.80 /SF/Yr
Expense Ratio
30.00%
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%
$2,624,680
Cap Rate 7%
$1,874,771
Cap Rate 9%
$1,458,156
Alternative Uses
Best Use
Specialty Retail
$4.65M
$4.07M – $5.42M
NOI $325,498 @ 7.0% cap · market cap 13.02%
Second Best
Industrial
$1.87M
$1.64M – $2.19M
NOI $131,234 @ 7.0% cap · market cap 5.25%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Highway access
Yes
Paved road access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
117
Businesses Nearby
101k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 64%
Shops & Services 18%
Home Improvements & Furnishings 18%
Meijer
Groceries
64,542 visits/mo
0.4 miles
The Home Depot
Home Improvements & Furnishings
17,694 visits/mo
0.2 miles
Meijer Gas Station
Shops & Services
14,444 visits/mo
0.5 miles
AutoZone
Shops & Services
2,928 visits/mo
0.4 miles
Napa Auto Parts
Shops & Services
1,080 visits/mo
0.1 miles
Demographics for 48609, MI
12,082
Population
5,494
Households
2.2
Avg Household Size
50
Median Age
26%
College-Educated
93%
High-School Grad
44.8 sq mi
ZIP Area
270
Density / Sq Mi
$78,800
Median Household Income
$43,865
Median Earnings
$903
Median Rent
$166,400
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 - Renovated restaurant property with a commercial kitchen, billiards, axe throwing lanes, and a Class C liquor license.
Where is this conventional restaurant located?
The property is located at 8849 GRATIOT RD Saginaw, MI.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 25,168‑square‑foot restaurant and entertainment facility on 2.55 acres; Comprehensively renovated inside and out; Dedicated entertainment wing with axe throwing lanes and billiards
