Renovated Restaurant/Bar with
For Sale
Contact for pricing
8874 Dixie Hwy Ira, Fair Haven, MI 48023
Fully renovated restaurant/bar with apartments and canal frontage.
Property Size5,974 SF
Lot Size1.00 Acre
Price / SF$108.80
Days on Market705
Property Features for 8874 Dixie Hwy Ira
General Information
Standard status
Active
Size
5,974 SF
Lot size
1.00 Acre
Property subtype
Mixed Use, Retail
Zoning
B2
Building Details
Year Built
1930
Listing Agency:
SKY PROPERTY GROUP
(586) 242-4312
Listed By:
Hiba Hakim · License #4431936
Source:
Crexi
Added: Sep 16, 2024
Changed: Aug 14
Last Checked: Aug 14 at 7:20AM
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 SKY PROPERTY GROUP
Investment Insights
Based on property information with market context.
This property features a fully renovated 5,974 sqft restaurant and bar with a capacity of 100 people, along with liquor licenses and three apartments. One apartment is currently occupied and generates $1,500 per month in rental income, while the other two are vacant. Situated on over an acre, the property has canal frontage on Swan Creek and is located across from Lake St. Clair, along Dixie Highway. This location is a major route for boaters and cottage residents from Clay Township, Algonac, and Harsens Island. While the bar and restaurant are not currently operating, they offer potential for future business. The property includes a basement and ample parking on a fully paved lot, with room for expansion. The zoning allows for various uses, including a gas station, liquor store, retail business, office or medical space, restaurant, or storage facility. This versatile space is suitable for attracting boating enthusiasts and sportsmen.
Key Highlights
- Fully renovated 5,974 sqft restaurant/bar with 100‑person capacity and liquor licenses
- Prime location on Dixie Highway across from Lake St. Clair with canal frontage on Swan Creek
- Three apartments included, with one generating $1,500/month in rental income
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
$41,221
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
6.34%
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%
$824,420
$824.4K
Cap Rate 7%
$588,871
$588.9K
Cap Rate 9%
$458,011
$458.0K
Market Conditions
NOI Build-Up for 5,974 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
$71.7K $12.00/SF
− Vacancy
−$5.7K −$0.96/SF
EGI
$66.0K $11.04/SF
− OpEx
−$24.7K −$4.14/SF
NOI
$41.2K $6.90/SF
Area
St. Clair County, MI
Vacancy
8.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
37.50%
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%
$824,420
Cap Rate 7%
$588,871
Cap Rate 9%
$458,011
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.38M
NOI $82,742 @ 7.0% cap · market cap 12.73%
Second Best
Mixed Use
$588.9K
$515.3K – $687.0K
NOI $41,221 @ 7.0% cap · market cap 6.34%
Theoretical Best
Multifamily LT 5
$4.49M
$3.93M – $5.24M
NOI $314,374 @ 7.0% cap · market cap 48.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
88
Businesses Nearby
8k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
BP
Shops & Services
5,772 visits/mo
0.3 miles
Fifth Third Bank & ATM
Shops & Services
2,673 visits/mo
0.0 miles
Demographics for 48023, MI
4,967
Population
2,375
Households
2.1
Avg Household Size
45
Median Age
22%
College-Educated
93%
High-School Grad
17.0 sq mi
ZIP Area
292
Density / Sq Mi
$79,345
Median Household Income
$35,449
Median Earnings
$1,277
Median Rent
$236,600
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?
Mixed-use property - Fully renovated restaurant/bar with apartments and canal frontage.
Where is this mixed-use property located?
The property is located at 8874 Dixie Hwy Ira Fair Haven, MI.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Fully renovated 5,974 sqft restaurant/bar with 100‑person capacity and liquor licenses; Prime location on Dixie Highway across from Lake St. Clair with canal frontage on Swan Creek; Three apartments included, with one generating $1,500/month in rental income
