Commercial Kitchen with Open
For Sale
$80,000
952 Pipestone Street, Benton Harbor, MI 49022
Existing food-service improvements and an additional lot support restaurant, catering, and event-oriented use concepts.
Property Size1,420 SF
Days on Market38
Property Features for 952 Pipestone Street
General Information
Standard status
Active
Size
1,420 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,056
Building Details
Building Size
1,420 SF
Year Built
1930
Buildings
1
Stories
1
Units
1
Listing Agency:
The Shore Real Estate Group
(269) 757-2769
Listed By:
Josh Frazee · License #6506049708
Source:
Erareardonrealty
Added: Jul 25
Changed: Aug 29
Last Checked: Aug 30 at 5:35PM
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 Shore Real Estate Group
Investment Insights
Based on property information with market context.
Built in 1930, the property combines a full commercial kitchen with flexible open space that can accommodate food-service, catering, and event-related operations. The configuration also supports wedding, corporate event, and pop-up concepts identified for the property.
An additional lot is included with the property and may provide space for parking, expansion, or outdoor events. The site is located at 952 Pipestone Street in Benton Harbor, near the redevelopment of the former hospital site.
An additional lot is included with the property and may provide space for parking, expansion, or outdoor events. The site is located at 952 Pipestone Street in Benton Harbor, near the redevelopment of the former hospital site.
Key Highlights
- Full commercial kitchen with flexible open space
- Additional lot included with the property
- Potential space for parking, expansion, or outdoor events
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
$6,344
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
7.93%
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%
$126,880
$126.9K
Cap Rate 7%
$90,629
$90.6K
Cap Rate 9%
$70,489
$70.5K
Market Conditions
NOI Build-Up for 1,420 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
$9.9K $6.96/SF
− Vacancy
−$820 −$0.58/SF
EGI
$9.1K $6.38/SF
− OpEx
−$2.7K −$1.91/SF
NOI
$6.3K $4.47/SF
Area
Berrien County, MI
Vacancy
8.30%
Lease Rate
$6.96 /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%
$126,880
Cap Rate 7%
$90,629
Cap Rate 9%
$70,489
Alternative Uses
Best Use
Specialty Retail
$225.6K
$197.4K – $263.2K
NOI $15,794 @ 7.0% cap · market cap 19.74%
Second Best
Industrial
$90.6K
$79.3K – $105.7K
NOI $6,344 @ 7.0% cap · market cap 7.93%
Theoretical Best
Office A
$298.8K
$261.5K – $348.6K
NOI $20,916 @ 7.0% cap · market cap 26.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
240
Businesses Nearby
Explore this area
Business Placement
Demographics for 49022, MI
30,143
Population
14,484
Households
2.1
Avg Household Size
39
Median Age
18%
College-Educated
85%
High-School Grad
67.3 sq mi
ZIP Area
448
Density / Sq Mi
$39,859
Median Household Income
$29,530
Median Earnings
$797
Median Rent
$140,500
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?
Commercial kitchen - Existing food-service improvements and an additional lot support restaurant, catering, and event-oriented use concepts.
Where is this commercial kitchen located?
The property is located at 952 Pipestone Street Benton Harbor, MI.
What is the asking price?
The asking price for this property is $80,000.
What are key features of this property?
This property features: Full commercial kitchen with flexible open space; Additional lot included with the property; Potential space for parking, expansion, or outdoor events
