Remodeled Office
For Sale
$749,000
2814 Franklin Street, Michigan City, IN 46360
COMMERCIAL - Michigan City, IN
Property Size3,960 SF
Lot Size0.51 Acres
Price / SF$189.14
Days on Market152
Property Features for 2814 Franklin Street
General Information
Property type
Commercial Sale
Property subtype
Office
Parking
27
Parking features
Alley, Off Street
Security features
Security System
Subdivision
Oaklawn Add
Directions
From Hwy 20 Head North On Franklin St. Go through the stoplight at Coolspring Ave. Building will be on the right at the corner of Franklin St and Gardena
Standard status
Active
APN
460133312022000022
Size
3,960 SF
Lot size
0.51 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
42-01-33-312-022 OAKLAWN ADD LOT 1 & VAC 15 FT ALLEY BTW LTS 1 & 2 BLK 3
Tax Annual Amount
5871
Legal Description
42-01-33-312-022 OAKLAWN ADD LOT 1 & VAC 15 FT ALLEY BTW LTS 1 & 2 BLK 3
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Water source
Public
Amenities
skylights
break area
irrigated landscaping
security system
ADA bathrooms
ramp access
Building Details
Year built
1962
Listing Agency:
Coldwell Banker Realty · Coldwell Banker Real Estate
(269) 469-3950
Listed By:
Zane Galloway · License #RB16000549
(219) 707-9282
Added: Mar 30
Changed: Aug 19
Last Checked: Aug 28 at 8:06AM
MLS# 836234
Copyright © 2026 Greater Northwest Indiana Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 3,960-square-foot office building at 2814 Franklin Street provides a professional layout with a bright waiting room, reception area, 10 offices, two testing rooms, storage rooms, and a break area. Two offices are sized for conference use, while skylights bring natural light into the hallways. The property includes two ADA bathrooms, ramp access from the parking area, an employee bathroom, and a utility room with interior and exterior entry. The layout supports use by multiple tenants.
The building sits on a 0.5096-acre parcel in Michigan City and includes a private 27-space parking lot with multiple ingress and egress points. Constructed in 1962 and remodeled in 1994, the property has a vinyl roof and underlayment insulation installed in 2016, along with an IB roof coating added in 2024. Public water and sewer serve the property, with forced-air, natural-gas heating. Irrigated landscaping and an active Sentinel Alarm security system are also in place.
The building sits on a 0.5096-acre parcel in Michigan City and includes a private 27-space parking lot with multiple ingress and egress points. Constructed in 1962 and remodeled in 1994, the property has a vinyl roof and underlayment insulation installed in 2016, along with an IB roof coating added in 2024. Public water and sewer serve the property, with forced-air, natural-gas heating. Irrigated landscaping and an active Sentinel Alarm security system are also in place.
Key Highlights
- 3,960‑square‑foot office building on a 0.5096‑acre parcel
- 10 offices, including two large conference‑capable rooms
- Private parking lot with 27 spaces and multiple ingress and egress points
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
$40,451
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
5.40%
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%
$809,020
$809.0K
Cap Rate 7%
$577,871
$577.9K
Cap Rate 9%
$449,456
$449.5K
Market Conditions
NOI Build-Up for 3,960 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
$59.4K $15.00/SF
− Vacancy
−$5.5K −$1.38/SF
EGI
$53.9K $13.62/SF
− OpEx
−$13.5K −$3.41/SF
NOI
$40.5K $10.22/SF
Area
LaPorte County, IN
Vacancy
9.20%
Lease Rate
$15.00 /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%
$809,020
Cap Rate 7%
$577,871
Cap Rate 9%
$449,456
Alternative Uses
Best Use
Office B
$577.9K
$505.6K – $674.2K
NOI $40,451 @ 7.0% cap · market cap 5.40%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.10M
$963.3K – $1.28M
NOI $77,063 @ 7.0% cap · market cap 10.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
344
Businesses Nearby
Explore this area
Business Placement
Demographics for 46360, IN
44,209
Population
21,652
Households
2
Avg Household Size
42
Median Age
23%
College-Educated
90%
High-School Grad
76.6 sq mi
ZIP Area
577
Density / Sq Mi
$59,641
Median Household Income
$36,738
Median Earnings
$924
Median Rent
$155,900
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Flexible professional layout with private parking, ADA access, and separate work areas for staff and visitors.
Where is this office building located?
The property is located at 2814 Franklin Street Michigan City, IN.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3,960‑square‑foot office building on a 0.5096‑acre parcel; 10 offices, including two large conference‑capable rooms; Private parking lot with 27 spaces and multiple ingress and egress points
