Two-Story Mixed-Use
For Sale
$375,000
704 Lincolnway, Valparaiso, IN 46383
R/T zoning permits commercial, professional, residential, and mixed-use applications.
Property Size2,202 SF
Price / SF$170.30
Days on Market513
Property Features for 704 Lincolnway
General Information
Standard status
Active
Size
2,202 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$6,635
Listing Agency:
McColly Real Estate
(219) 309-9530
Listed By:
Wendy Van Denburgh
(219) 309-9530
Source:
Exprealty
Added: Apr 7, 2025
Changed: Aug 31
Last Checked: Aug 31 at 7:31PM
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 McColly Real Estate
Investment Insights
Based on property information with market context.
Located at 704 Lincolnway in Valparaiso, this two-story mixed-use property offers a flexible combination of commercial and residential potential. R/T zoning supports commercial and professional activities alongside residential or mixed-use applications. The building was most recently configured as two rental units, with one two-bedroom unit on each floor.
Parking includes a private area behind the building, additional on-street spaces, and an oversized two-car garage. Its position near Valparaiso University and downtown Valparaiso provides access to established institutional and downtown surroundings. The property can accommodate a range of retail, service, and professional concepts, while retaining a residential configuration for income-producing use.
Parking includes a private area behind the building, additional on-street spaces, and an oversized two-car garage. Its position near Valparaiso University and downtown Valparaiso provides access to established institutional and downtown surroundings. The property can accommodate a range of retail, service, and professional concepts, while retaining a residential configuration for income-producing use.
Key Highlights
- R/T zoning permits commercial, professional, residential, and mixed‑use applications
- Two‑story building was configured as two rental units with a two‑bedroom unit on each floor
- Oversized two‑car garage included
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
$20,181
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
5.38%
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%
$403,620
$403.6K
Cap Rate 7%
$288,300
$288.3K
Cap Rate 9%
$224,233
$224.2K
Market Conditions
NOI Build-Up for 2,202 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
$34.4K $15.60/SF
− Vacancy
−$2.1K −$0.94/SF
EGI
$32.3K $14.66/SF
− OpEx
−$12.1K −$5.50/SF
NOI
$20.2K $9.17/SF
Area
Porter County, IN
Vacancy
6.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
37.50%
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%
$403,620
Cap Rate 7%
$288,300
Cap Rate 9%
$224,233
Alternative Uses
Best Use
Mixed Use
$288.3K
$252.3K – $336.4K
NOI $20,181 @ 7.0% cap · market cap 5.38%
Second Best
Multifamily LT 5
$286.6K
$250.7K – $334.3K
NOI $20,059 @ 7.0% cap · market cap 5.35%
Theoretical Best
Healthcare Medical
$834.6K
$730.3K – $973.7K
NOI $58,420 @ 7.0% cap · market cap 15.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,629
Businesses Nearby
Explore this area
Business Placement
Demographics for 46383, IN
41,981
Population
18,343
Households
2.3
Avg Household Size
39
Median Age
38%
College-Educated
95%
High-School Grad
87.5 sq mi
ZIP Area
480
Density / Sq Mi
$75,575
Median Household Income
$43,065
Median Earnings
$1,144
Median Rent
$258,400
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?
Mixed-use property - R/T zoning permits commercial, professional, residential, and mixed-use applications.
Where is this mixed-use property located?
The property is located at 704 Lincolnway Valparaiso, IN.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: R/T zoning permits commercial, professional, residential, and mixed‑use applications; Two‑story building was configured as two rental units with a two‑bedroom unit on each floor; Oversized two‑car garage included
