Restored Greenwood Office Building For
For Sale
Contact for pricing
2 N Madison Ave, Greenwood, IN 46142
Fully restored office building with upside potential in Greenwood.
Property Size18,360 SF
Price / SF$160.68
Days on Market874
Property Features for 2 N Madison Ave
General Information
Standard status
Active
Size
18,360 SF
Class
B
Property subtype
Office, Mixed Use
Zoning
Commercial
Occupancy
95%
Lease Type
Modified Gross
Investment Type
Stabilized
Net Operating Income
$213,869
Building Details
Year Renovated
2016
Stories
2
Tenancy
Multi
Listing Agency:
Randy Faulkner & Associates
(317) 889-9299
Listed By:
Eric Harvey · License #RB14040530
Source:
Crexi
Added: Apr 9, 2024
Changed: Aug 27
Last Checked: Aug 28 at 11:14AM
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 Randy Faulkner & Associates
Investment Insights
Based on property information with market context.
This Greenwood office building is positioned for long-term growth. It was fully restored in 2016, with an additional $75,000 in capital improvements made in 2025. The property includes a full basement and sub-grade space that offers possible expansion of rentable square footage. An elevator and sprinkler system are in place. Additional parking spaces are secured weekdays under a long-term lease across Broadway St. The building features remote electronic access, security, fire, and HVAC controls. Currently, the first floor houses an ABA, and there are 4 tenants upstairs. The floor plan is suited for medical, professional services, and educational uses. Popular destinations such as Vino Villa, La Trattoria, local craft breweries and distilleries, banking, and retail are within walking distance. 750 square feet is currently vacant, offering upside potential. The property size is 18360 square feet.
Key Highlights
- Fully restored in 2016, further enhanced with $75,000 in capital improvements in 2025.
- 750 square feet vacant**, offering excellent upside potential.
- Full basement and sub‑grade space for possible expansion.
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
$231,749
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
7.86%
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%
$4,634,980
$4.6M
Cap Rate 7%
$3,310,700
$3.3M
Cap Rate 9%
$2,574,989
$2.6M
Market Conditions
NOI Build-Up for 18,360 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
$363.5K $19.80/SF
− Vacancy
−$54.5K −$2.97/SF
EGI
$309.0K $16.83/SF
− OpEx
−$77.2K −$4.21/SF
NOI
$231.7K $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%
$4,634,980
Cap Rate 7%
$3,310,700
Cap Rate 9%
$2,574,989
Alternative Uses
Best Use
Office B
$3.31M
$2.90M – $3.86M
NOI $231,749 @ 7.0% cap · market cap 7.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.63M
$4.05M – $5.40M
NOI $323,870 @ 7.0% cap · market cap 10.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
695
Businesses Nearby
Explore this area
Business Placement
Demographics for 46142, IN
32,052
Population
14,396
Households
2.2
Avg Household Size
40
Median Age
39%
College-Educated
94%
High-School Grad
14.9 sq mi
ZIP Area
2,151
Density / Sq Mi
$85,611
Median Household Income
$47,831
Median Earnings
$1,122
Median Rent
$266,000
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 - Fully restored office building with upside potential in Greenwood.
Where is this office building located?
The property is located at 2 N Madison Ave Greenwood, IN.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Fully restored in 2016, further enhanced with **$75,000 in capital improvements in 2025.**; 750 square feet vacant**, offering excellent upside potential.; Full basement and sub‑grade space for possible expansion.
