Building Details

Year Built 1957

Buildings 2

Listing Agency: FC Tucker/Bloomington REALTORS c***@cockerham.us Show Phone

Listed By: Chris Cockerham · License #RB14027897

Source: Kmsrealestategroup

Added: Aug 22 Changed: Aug 28 Last Checked: Aug 28 at 2:24PM

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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 FC Tucker/Bloomington REALTORS

Investment Insights

Based on property information with market context.

The property includes a 2,682 SF restaurant and a separate 1BR/1BA cabin. Dining and kitchen equipment convey with the property, along with liquor and food licenses. The restaurant business, Porthole Inn, has operated since 1957, and the building was constructed that year.

A dock on Lake Lemon provides direct lake access, while the property is located at 8939 E Southshore Dr in Unionville, Indiana. Ample parking is available on site, supporting restaurant operations and customer access.

Key Highlights

• 2,682 SF restaurant building with detached 1BR/1BA cabin
• Dock on Lake Lemon provides direct lake access
• Liquor license and food license included

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

$34,686

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

4.36%

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%

$693,720 $693.7K

Cap Rate 7%

$495,514 $495.5K

Cap Rate 9%

$385,400 $385.4K

Market Conditions

NOI Build-Up for 2,682 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

$48.3K $18.00/SF

− Vacancy

−$2.0K −$0.76/SF

EGI

$46.2K $17.24/SF

− OpEx

−$11.6K −$4.31/SF

NOI

$34.7K $12.93/SF

Area

Monroe County, IN

Vacancy

4.20%

Lease Rate

$18.00 /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%

$693,720

Cap Rate 7%

$495,514

Cap Rate 9%

$385,400

Alternative Uses

Best Use

Specialty Retail

$495.5K

$433.6K – $578.1K (±1% cap)

NOI $34,686 @ 7.0% cap · market cap 4.36%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$524.2K

$458.6K – $611.5K (±1% cap)

NOI $36,691 @ 7.0% cap · market cap 4.62%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Port Hole Inn Bar & Pub

Suggested Use

Top Pick Real Estate Agency Travel Agency Restaurant Bed & Breakfast Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Yes

Liquor license

Location Intelligence

Trade Area within ½ mile

8

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 47468, IN

1,180

Population

905

Households

1.3

Avg Household Size

53

Median Age

41%

College-Educated

95%

High-School Grad

30.3 sq mi

ZIP Area

39

Density / Sq Mi

$81,979

Median Household Income

$45,327

Median Earnings

$973

Median Rent

$282,600

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Operating restaurant with a detached one-bedroom cabin, lake access, included licenses, and on-site parking.

Where is this conventional restaurant located?

The property is located at 8939 E Southshore Dr Unionville, IN.

What is the asking price?

The asking price for this property is $795,000.

What are key features of this property?

This property features: 2,682 SF restaurant building with detached 1BR/1BA cabin; Dock on Lake Lemon provides direct lake access; Liquor license and food license included