Remodeled Restaurant Property For
For Sale
Contact for pricing
5402 Portage Road, Portage, MI 49002
Remodeled 7,428 SF restaurant with updated kitchen and outdoor patio.
Property Size7,428 SF
Price / SF$222.13
Days on Market625
Property Features for 5402 Portage Road
General Information
Standard status
Active
Size
7,428 SF
Property subtype
Retail, Office
Zoning
B-3
Building Details
Year Built
1992
Listing Agency:
Kalamazoo Commercial Real Estate
(269) 888-2755
Listed By:
Andrew Gyorkos · License #MI
Source:
Crexi
Added: Dec 4, 2024
Changed: Aug 17
Last Checked: Aug 14 at 5:59AM
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 Kalamazoo Commercial Real Estate
Investment Insights
Based on property information with market context.
This recently remodeled 7,428 SF property is located approximately 1/3 mile south of the I-94 Portage Road interchange, situated on a major retail corridor across from the Kalamazoo/Battle Creek International Airport, at a signalized corner. The building, suitable for restaurant use, has a capacity of over 200 people and features an updated commercial kitchen and a custom wood-fired pizza oven. All restaurant FF&E is included, with a list available upon request. The property also includes an outdoor patio, over 100 parking spaces, and signage opportunities. The landlord is willing to demise the property for the right user.
Key Highlights
- High‑visibility location on a major retail corridor across from Kalamazoo/Battle Creek International Airport at a signalized corner.
- Large 7,428 SF building with 200+ capacity.
- Updated commercial kitchen and custom wood‑fired pizza oven 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
$69,689
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
4.22%
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%
$1,393,780
$1.4M
Cap Rate 7%
$995,557
$995.6K
Cap Rate 9%
$774,322
$774.3K
Market Conditions
NOI Build-Up for 7,428 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
$97.6K $13.14/SF
− Vacancy
−$4.7K −$0.63/SF
EGI
$92.9K $12.51/SF
− OpEx
−$23.2K −$3.13/SF
NOI
$69.7K $9.38/SF
Area
Kalamazoo County, MI
Vacancy
4.80%
Lease Rate
$13.14 /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%
$1,393,780
Cap Rate 7%
$995,557
Cap Rate 9%
$774,322
Alternative Uses
Best Use
Specialty Retail
$995.6K
$871.1K – $1.16M
NOI $69,689 @ 7.0% cap · market cap 4.22%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.94M
$1.70M – $2.27M
NOI $136,063 @ 7.0% cap · market cap 8.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
294
Businesses Nearby
41k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Shops & Services 44%
Hotels & Casinos 5%
Beauty & Spa 2%
Shell
Shops & Services
18,001 visits/mo
0.4 miles
Taco Bell
Dining
10,075 visits/mo
0.2 miles
BIGGBY COFFEE
Dining
6,161 visits/mo
0.1 miles
SUBWAY
Dining
3,420 visits/mo
0.2 miles
Hampton Inn Kalamazoo
Hotels & Casinos
2,235 visits/mo
0.3 miles
Demographics for 49002, MI
19,553
Population
8,975
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
96%
High-School Grad
17.3 sq mi
ZIP Area
1,130
Density / Sq Mi
$71,621
Median Household Income
$45,938
Median Earnings
$910
Median Rent
$223,000
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?
Restaurant - Remodeled 7,428 SF restaurant with updated kitchen and outdoor patio.
Where is this restaurant located?
The property is located at 5402 Portage Road Portage, MI.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: High‑visibility location on a major retail corridor across from Kalamazoo/Battle Creek International Airport at a signalized corner.; Large 7,428 SF building with 200+ capacity.; Updated commercial kitchen and custom wood‑fired pizza oven included.**
