Waterfront Restaurant with Living
For Sale
$325,000
9724 Pearl Beach Boulevard, Algonac, MI 48001
Commercially zoned restaurant with a fully equipped kitchen, recreational waterfront setting, and upper-level apartment.
Property Size4,400 SF
Days on Market42
Property Features for 9724 Pearl Beach Boulevard
General Information
Standard status
Active
Size
4,400 SF
Property subtype
Commercial
Zoning
Commercial
Restaurant
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Business Included
Yes
Building Details
Building Size
4,400 SF
Year Built
1900
Buildings
1
Listing Agency:
RE/MAX Advisors
(586) 805-8511
Listed By:
Catherine Baker · License #6501336049
Source:
Erareardonrealty
Added: Jul 20
Changed: Aug 28
Last Checked: Aug 29 at 10:20AM
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 RE/MAX Advisors
Investment Insights
Based on property information with market context.
This restaurant property at 9724 Pearl Beach Boulevard includes the operating business, real estate, Johnnie Lega's name, liquor license, furnishings, and kitchen contents. The interior accommodates more than 100 patrons and includes a bar, two restrooms, two furnaces, and two A/C units. Kitchen equipment includes fryers, a grill, griddle, soup station, industrial dishwasher, large freezers and refrigerators, and two walk-in coolers. The commercial kitchen measures 23 by 12 feet.
An approximately 2,000-square-foot apartment above the restaurant provides three bedrooms and separate living quarters. The property sits beside a public fishing pier on the North Channel and includes ample parking. A waterfront lot is also available through an option to purchase or lease, creating additional site flexibility without changing the existing restaurant configuration.
An approximately 2,000-square-foot apartment above the restaurant provides three bedrooms and separate living quarters. The property sits beside a public fishing pier on the North Channel and includes ample parking. A waterfront lot is also available through an option to purchase or lease, creating additional site flexibility without changing the existing restaurant configuration.
Key Highlights
- Waterfront restaurant beside a public fishing pier on the North Channel
- Business, real estate, liquor license, furnishings, and Johnnie Lega's name included
- Seating for 100+ patrons with bar, two restrooms, two furnaces, and two A/C units
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
$25,780
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%
$515,600
$515.6K
Cap Rate 7%
$368,286
$368.3K
Cap Rate 9%
$286,444
$286.4K
Market Conditions
NOI Build-Up for 4,400 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
$39.6K $9.00/SF
− Vacancy
−$2.8K −$0.63/SF
EGI
$36.8K $8.37/SF
− OpEx
−$11.0K −$2.51/SF
NOI
$25.8K $5.86/SF
Area
St. Clair County, MI
Vacancy
7.00%
Lease Rate
$9.00 /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%
$515,600
Cap Rate 7%
$368,286
Cap Rate 9%
$286,444
Alternative Uses
Best Use
Specialty Retail
$870.6K
$761.8K – $1.02M
NOI $60,941 @ 7.0% cap · market cap 18.75%
Second Best
Industrial
$368.3K
$322.3K – $429.7K
NOI $25,780 @ 7.0% cap · market cap 7.93%
Theoretical Best
Multifamily LT 5
$3.31M
$2.89M – $3.86M
NOI $231,544 @ 7.0% cap · market cap 71.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 48001, MI
11,721
Population
5,787
Households
2
Avg Household Size
50
Median Age
18%
College-Educated
94%
High-School Grad
19.0 sq mi
ZIP Area
617
Density / Sq Mi
$64,538
Median Household Income
$35,987
Median Earnings
$921
Median Rent
$250,000
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?
Conventional restaurant - Commercially zoned restaurant with a fully equipped kitchen, recreational waterfront setting, and upper-level apartment.
Where is this conventional restaurant located?
The property is located at 9724 Pearl Beach Boulevard Algonac, MI.
What is the asking price?
The asking price for this property is $325,000.
What are key features of this property?
This property features: Waterfront restaurant beside a public fishing pier on the North Channel; Business, real estate, liquor license, furnishings, and Johnnie Lega's name included; Seating for 100+ patrons with bar, two restrooms, two furnaces, and two A/C units
