Ann Arbor Cocktail & Coffee
For Sale
Contact for pricing
413 E Huron Street Suite C, Ann Arbor, MI 48104
Turnkey cocktail and coffee lounge in downtown Ann Arbor.
Property Size2,320 SF
Price / SF$258.58
Days on Market671
Property Features for 413 E Huron Street Suite C
General Information
Standard status
Active
Size
2,320 SF
Property subtype
Business for Sale, Retail
Zoning
Commercial
Building Details
Year Built
2024
Listing Agency:
CENTURY 21 Curran & Oberski Dearborn Heights
(313) 506-1468
Listed By:
Robert Struk · License #MI
Source:
Crexi
Added: Oct 19, 2024
Changed: Aug 8
Last Checked: Aug 20 at 10:29AM
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 CENTURY 21 Curran & Oberski Dearborn Heights
Investment Insights
Based on property information with market context.
This 2320 square foot cocktail and coffee lounge is located on the ground floor of the Foundry Lofts building in downtown Ann Arbor. The establishment seats up to 74 patrons and offers a variety of cocktails, coffee, gourmet espresso, tea, and fresh baked flatbreads, along with a wide selection of draft beers, liquors, and wine. An open and airy patio seating area allows patrons to enjoy beverages outdoors. The interior features comfortable seating, music, and the aroma of fresh roasted coffee. Customers have the option to sit and stay or grab and go. TVs behind the bar broadcast sporting events. The business opportunity includes a transferable Class C liquor license (Outdoor service area, Sunday sales, Spirits & Mixed Spirit Drinks) and a 10-year lease with a 5-year renewal option. The lounge is a destination for martinis and high-end brews, offering a space where tradition and craftsmanship converge. The business is located in a community-oriented area, offering opportunities to advertise for local events and promote local artists and businesses.
Key Highlights
- Turnkey business in a prime downtown Ann Arbor location.
- Includes a transferable Class C liquor license (Outdoor service area, Sunday sales, Spirits & Mixed Spirit Drinks).
- 10‑year lease with a 5‑year renewal option.
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
$30,584
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
5.10%
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%
$611,680
$611.7K
Cap Rate 7%
$436,914
$436.9K
Cap Rate 9%
$339,822
$339.8K
Market Conditions
NOI Build-Up for 2,320 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
$43.2K $18.60/SF
− Vacancy
−$2.4K −$1.02/SF
EGI
$40.8K $17.58/SF
− OpEx
−$10.2K −$4.39/SF
NOI
$30.6K $13.18/SF
Area
Ann Arbor, MI
Vacancy
5.50%
Lease Rate
$18.60 /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%
$611,680
Cap Rate 7%
$436,914
Cap Rate 9%
$339,822
Alternative Uses
Best Use
Specialty Retail
$436.9K
$382.3K – $509.7K
NOI $30,584 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$512.4K
$448.3K – $597.8K
NOI $35,867 @ 7.0% cap · market cap 5.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,680
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48104, MI
41,588
Population
19,173
Households
2.2
Avg Household Size
27
Median Age
82%
College-Educated
98%
High-School Grad
7.8 sq mi
ZIP Area
5,332
Density / Sq Mi
$63,341
Median Household Income
$16,073
Median Earnings
$1,548
Median Rent
$481,600
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?
Bar & Pub - Turnkey cocktail and coffee lounge in downtown Ann Arbor.
Where is this bar & pub located?
The property is located at 413 E Huron Street Suite C Ann Arbor, MI.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: Turnkey business in a prime downtown Ann Arbor location.; Includes a transferable Class C liquor license (Outdoor service area, Sunday sales, Spirits & Mixed Spirit Drinks).; 10‑year lease with a 5‑year renewal option.
