All-Brick Fully Leased
For Sale
$1,800,000
1623 Portage Ave, Chesterton, IN 46304
All-brick, fully occupied 12-unit building features 2-bedroom and 1-bedroom apartments with separate utilities and on-site laundry.
Property Size10,500 SF
Days on Market135
Property Features for 1623 Portage Ave
General Information
Standard status
Active
Size
10,500 SF
Class
A
Property subtype
Multi-Family
Occupancy
100%
Additional Details
Multifamily Units
12
Amenities
on-site laundry
Building Details
Building Size
10,500 SF
Year Built
1966
Units
12
Construction
brick
Tenancy
Multi
Listing Agency:
Diversified Commercial Real Estate
(219) 836-4740
Listed By:
Mike Larson · License ##RB14030764
Source:
Commercialcafe
Added: Apr 9
Changed: Aug 13
Last Checked: Aug 18 at 6:22AM
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 Diversified Commercial Real Estate
Investment Insights
Based on property information with market context.
This all-brick, fully occupied 12-unit apartment building consists of ten 2-bedroom/1-bath units and two 1-bedroom/1-bath units. Nine of the apartments have been updated or remodeled within the last few years. Improvements since 2011 include a new roof, gutters, and windows. Each unit is separately metered for NIPSCO and water/sewer, with wall air conditioners and baseboard heat. The landlord covers common area utilities, snow removal, landscaping, and garbage. On-site laundry serves the building.
The property is located a few miles from Chesterton High School and is surrounded by single-family homes. It also provides convenient access to downtown Chesterton and is close to Indiana Dunes National Park.
Parking is provided at the front and rear of the building.
The property is located a few miles from Chesterton High School and is surrounded by single-family homes. It also provides convenient access to downtown Chesterton and is close to Indiana Dunes National Park.
Parking is provided at the front and rear of the building.
Key Highlights
- All‑brick, fully occupied 12‑unit apartment building (built 1966) with 2BD/1BA and 1BD/1BA units
- Unit mix: 10 two‑bedroom/one‑bath units and 2 one‑bedroom/one‑bath units
- 9 of 12 apartments updated/remodeled in recent years
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
$83,382
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
4.63%
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%
$1,667,640
$1.7M
Cap Rate 7%
$1,191,171
$1.2M
Cap Rate 9%
$926,467
$926.5K
Market Conditions
NOI Build-Up for 10,500 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
$161.3K $15.36/SF
− Vacancy
−$9.7K −$0.92/SF
EGI
$151.6K $14.44/SF
− OpEx
−$68.2K −$6.50/SF
NOI
$83.4K $7.94/SF
Area
Porter County, IN
Vacancy
6.00%
Lease Rate
$15.36 /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%
$1,667,640
Cap Rate 7%
$1,191,171
Cap Rate 9%
$926,467
Alternative Uses
Best Use
Apartment 5plus
$1.19M
$1.04M – $1.39M
NOI $83,382 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$3.98M
$3.48M – $4.64M
NOI $278,571 @ 7.0% cap · market cap 15.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
92
Businesses Nearby
Explore this area
Business Placement
Demographics for 46304, IN
26,835
Population
11,521
Households
2.3
Avg Household Size
41
Median Age
35%
College-Educated
96%
High-School Grad
57.8 sq mi
ZIP Area
464
Density / Sq Mi
$88,551
Median Household Income
$52,704
Median Earnings
$1,169
Median Rent
$278,300
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?
Apartment building - All-brick, fully occupied 12-unit building features 2-bedroom and 1-bedroom apartments with separate utilities and on-site laundry.
Where is this apartment building located?
The property is located at 1623 Portage Ave Chesterton, IN.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: All‑brick, fully occupied 12‑unit apartment building (built 1966) with 2BD/1BA and 1BD/1BA units; Unit mix: 10 two‑bedroom/one‑bath units and 2 one‑bedroom/one‑bath units; 9 of 12 apartments updated/remodeled in recent years
