Mixed-Use Retail and
For Sale
$419,900
1116 GROVE AVE, Racine, WI 53405
Property features two retail spaces on the ground level and two apartments above with side-and-rear parking.
Property Size4,000 SF
Price / SF$104.98
Days on Market183
Property Features for 1116 GROVE AVE
General Information
Standard status
Active
Size
4,000 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$7,533
Amenities
3
B2, RES
3 Parking Spaces.
0.0 to .499
Building Details
Year Built
1969
Listing Agency:
Realty ONE Group Boardwalk
(262) 586-7900
Listed By:
Darryl Heyden · License #8341594
(414) 651-7062
Source:
Xome
Added: Mar 6
Changed: Sep 2
Last Checked: Sep 5 at 3:52AM
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 Realty ONE Group Boardwalk
Investment Insights
Based on property information with market context.
This mixed-use property is centrally located and offers income-producing space with two retail business spaces on the first floor and two apartments on the second floor. The first-floor tenants are currently operating as a barber shop and a beauty shop, while both second-floor apartments are occupied. One first-floor unit is vacant and listed separately (MLS #1939695), and it is expected to be shown with the lower units.
There is ample parking on the side and rear of the building. The roof is approximately two years old and includes a 20-year transferable warranty for materials and labor.
The property is configured as a duplex-style setup above retail, with all four units available as separate income opportunities depending on occupancy at the time of closing.
There is ample parking on the side and rear of the building. The roof is approximately two years old and includes a 20-year transferable warranty for materials and labor.
The property is configured as a duplex-style setup above retail, with all four units available as separate income opportunities depending on occupancy at the time of closing.
Key Highlights
- Mixed‑use building with 2 retail business spaces on the ground level and 2 apartments on the second floor
- Potential income from all 4 units in excess of $4,700/month, with a barber shop and beauty shop on the first floor
- Roof is about 2 years old and includes a 20‑year transferable warranty for materials and labor
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
$38,016
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
9.05%
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%
$760,320
$760.3K
Cap Rate 7%
$543,086
$543.1K
Cap Rate 9%
$422,400
$422.4K
Market Conditions
NOI Build-Up for 4,000 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
$72.0K $18.00/SF
− Vacancy
−$2.9K −$0.72/SF
EGI
$69.1K $17.28/SF
− OpEx
−$31.1K −$7.78/SF
NOI
$38.0K $9.50/SF
Area
Racine County, WI
Vacancy
4.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
45.00%
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%
$760,320
Cap Rate 7%
$543,086
Cap Rate 9%
$422,400
Alternative Uses
Best Use
Multifamily LT 5
$623.4K
$545.5K – $727.3K
NOI $43,636 @ 7.0% cap · market cap 10.39%
Second Best
Retail
$581.4K
$508.7K – $678.3K
NOI $40,698 @ 7.0% cap · market cap 9.69%
Theoretical Best
Office A
$961.9K
$841.7K – $1.12M
NOI $67,334 @ 7.0% cap · market cap 16.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
397
Businesses Nearby
Explore this area
Business Placement
Demographics for 53405, WI
25,561
Population
11,509
Households
2.2
Avg Household Size
39
Median Age
26%
College-Educated
90%
High-School Grad
6.6 sq mi
ZIP Area
3,873
Density / Sq Mi
$68,339
Median Household Income
$40,162
Median Earnings
$946
Median Rent
$173,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Property features two retail spaces on the ground level and two apartments above with side-and-rear parking.
Where is this duplex located?
The property is located at 1116 GROVE AVE Racine, WI.
What is the asking price?
The asking price for this property is $419,900.
What are key features of this property?
This property features: Mixed‑use building with 2 retail business spaces on the ground level and 2 apartments on the second floor; Potential income from all 4 units in excess of $4,700/month, with a barber shop and beauty shop on the first floor; Roof is about 2 years old and includes a 20‑year transferable warranty for materials and labor
