Commercial Development Opportunity in
For Sale
$799,000
774 S Morgantown Rd, Greenwood, IN 46143
Two-story building and pole barn on 2+ acres.
Property Size3,552 SF
Lot Size2.01 Acres
Price / SF$224.94
Days on Market713
Property Features for 774 S Morgantown Rd
General Information
Standard status
Active
Size
3,552 SF
Lot size
2.01 Acres
Listing Agency:
Sugar Creek Real Estate, LLC
(317) 491-5334
Listed By:
Katina Whalen · License #RB14031898
(317) 491-5334
Source:
Exprealty
Added: Sep 8, 2024
Changed: Aug 20
Last Checked: Aug 20 at 1:01PM
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 Sugar Creek Real Estate, LLC
Investment Insights
Based on property information with market context.
This strategically located property offers a commercial development opportunity in a rapidly growing area. The site is currently zoned R2, providing flexibility for various commercial uses. The existing two-story building features 3,552 square feet of space, including multiple private rooms, spacious community areas, a full kitchen, and four bathrooms. A 400-square-foot pole barn is also located on the property, which spans over two acres. The property benefits from its proximity to other businesses and the upcoming Shops at Center Grove. Its location provides visibility and accessibility, situated minutes from the new I-69 interchange at Smith Valley Road. This location is suited for businesses seeking to capitalize on the area's commercial scene.
Key Highlights
- Prime location with excellent visibility and accessibility, minutes from the new I‑69 interchange.
- Zoned R2, offering flexibility for various commercial uses.
- Existing 3,552‑square‑foot two‑story building with multiple private rooms, community areas, full kitchen, and four bathrooms.
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
$44,835
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
5.61%
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%
$896,700
$896.7K
Cap Rate 7%
$640,500
$640.5K
Cap Rate 9%
$498,167
$498.2K
Market Conditions
NOI Build-Up for 3,552 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
$70.3K $19.80/SF
− Vacancy
−$10.5K −$2.97/SF
EGI
$59.8K $16.83/SF
− OpEx
−$14.9K −$4.21/SF
NOI
$44.8K $12.62/SF
Area
Johnson County, IN
Vacancy
15.00%
Lease Rate
$19.80 /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%
$896,700
Cap Rate 7%
$640,500
Cap Rate 9%
$498,167
Alternative Uses
Best Use
Office B
$640.5K
$560.4K – $747.3K
NOI $44,835 @ 7.0% cap · market cap 5.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$895.1K
$783.2K – $1.04M
NOI $62,657 @ 7.0% cap · market cap 7.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
83
Businesses Nearby
Explore this area
Business Placement
Demographics for 46143, IN
62,618
Population
23,417
Households
2.7
Avg Household Size
36
Median Age
36%
College-Educated
93%
High-School Grad
49.4 sq mi
ZIP Area
1,268
Density / Sq Mi
$89,401
Median Household Income
$51,213
Median Earnings
$1,427
Median Rent
$295,400
Median Home Value
Market
Vacancy Rate% for Office 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 land - Two-story building and pole barn on 2+ acres.
Where is this commercial land located?
The property is located at 774 S Morgantown Rd Greenwood, IN.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Prime location with excellent visibility and accessibility, minutes from the new I‑69 interchange.; Zoned R2, offering flexibility for various commercial uses.; Existing 3,552‑square‑foot two‑story building with multiple private rooms, community areas, full kitchen, and four bathrooms.
