Building Details

Building Size 2,352 SF

Year Built 1975

Stories 1

Units 1

Listing Agency: Sandelands Realty r**@sandelandsrealty.com Show Phone

Listed By: Robert Mason · License #40787661 Show Phone

Source: Ivyrealestategroup

Added: Jan 18 Changed: Aug 23 Last Checked: Aug 24 at 1:52PM

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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 Sandelands Realty

Investment Insights

Based on property information with market context.

A turn-key restaurant and bar business is offered fully furnished and well stocked, including fixtures, inventory, supplies, and appliances. The sale also includes the lot and building, which have seen multiple updates in recent years.

Improvements include a new roof and HVAC system installed in October 2025. Additional work includes new flooring and new coolers in 2024, and the addition of a new walk-in freezer and cooler in 2023. The property is described as overlooking Lake Mille Lacs, creating a scenic setting for the existing operation.

Updates to the building have been compiled for review in the attached materials, supporting the current condition and readiness of the space for an incoming operator.

Key Highlights

• Lakefront restaurant/bar business in Garrison, MN overlooking Lake Mille Lacs
• Fully furnished and well stocked; fixtures, inventory, supplies, and appliances included
• New roof and HVAC system installed October 2025

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

$28,195

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

8.06%

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%

$563,900 $563.9K

Cap Rate 7%

$402,786 $402.8K

Cap Rate 9%

$313,278 $313.3K

Market Conditions

NOI Build-Up for 2,352 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

$40.1K $17.04/SF

− Vacancy

−$2.5K −$1.06/SF

EGI

$37.6K $15.98/SF

− OpEx

−$9.4K −$4.00/SF

NOI

$28.2K $11.99/SF

Area

Crow Wing County, MN

Vacancy

6.20%

Lease Rate

$17.04 /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%

$563,900

Cap Rate 7%

$402,786

Cap Rate 9%

$313,278

Alternative Uses

Best Use

Specialty Retail

$402.8K

$352.4K – $469.9K (±1% cap)

NOI $28,195 @ 7.0% cap · market cap 8.06%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$499.3K

$436.9K – $582.6K (±1% cap)

NOI $34,953 @ 7.0% cap · market cap 9.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Diamond Dave's Lake ... Restaurant

Suggested Use

Top Pick Building Supply Auto Repair Shop Auto Parts Store Veterinary Clinic Grocery & Convenience Store Food Market

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

Location Intelligence

Trade Area within ½ mile

97

Businesses Nearby

49k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 65% Dining 35%

Holiday Station Store Shops & Services

27,665 visits/mo 0.2 miles

McDonald's Dining

17,394 visits/mo 0.2 miles

Dollar General Shops & Services

3,976 visits/mo 0.2 miles

Demographics for 56450, MN

1,129

Population

1,061

Households

1.1

Avg Household Size

58

Median Age

18%

College-Educated

87%

High-School Grad

26.3 sq mi

ZIP Area

43

Density / Sq Mi

$59,076

Median Household Income

$26,350

Median Earnings

$933

Median Rent

$190,900

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 bars & pubs 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?

Bar & Pub - Lakefront restaurant and bar operation is offered fully furnished, with recent roof, HVAC, and multiple interior upgrades.

Where is this bar & pub located?

The property is located at 9575 Madison Street Garrison, MN.

What is the asking price?

The asking price for this property is $350,000.

What are key features of this property?

This property features: Lakefront restaurant/bar business in Garrison, MN overlooking Lake Mille Lacs; Fully furnished and well stocked; fixtures, inventory, supplies, and appliances included; New roof and HVAC system installed October 2025