Versatile Mixed-Use Investment
For Sale
$599,000
1416 Franklin St, Michigan City, IN 46360
Multi-tenant property near South Shore train station and luxury apartments.
Property Size12,470 SF
Price / SF$48.04
Days on Market184
Property Features for 1416 Franklin St
General Information
Standard status
Active
Size
12,470 SF
Building Details
Year Built
1947
Listing Agency:
Coldwell Banker Real Estate Gr
Listed By:
Vince Kisala · License #RB14046307
(312) 804-2193
Source:
Amyboston.realtopiare
Added: Mar 27
Changed: Sep 14
Last Checked: Sep 24 at 11:43AM
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 Coldwell Banker Real Estate Gr
Investment Insights
Based on property information with market context.
This versatile mixed-use property is designed for multi-tenant use, offering investment and income potential. It is located three blocks from the new South Shore train Station and "The Franklin" luxury apartment development. The street level along Franklin Street features a spacious three-office suite and a separate standalone retail space, suitable for various business uses. The second floor includes a residential unit with 2 bedrooms and 1.5 bathrooms, ideal for owner occupancy or rental income. At the rear of the property on Ripley Street is an industrial building, formerly used by a bolt company, which includes a loading dock and warehouse space, making it suitable for storage, light manufacturing, or distribution. The main building has a new roof installed in 2025. Located in a rapidly developing area with increasing foot traffic and investment, this property offers possibilities for entrepreneurs and investors.
Key Highlights
- Multi‑tenant property with strong investment and income potential.
- Located 3 blocks from the new South Shore train Station and "The Franklin" luxury apartment development.
- Includes a street‑level three‑office suite and a separate retail space.
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
$47,451
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
7.92%
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%
$949,020
$949.0K
Cap Rate 7%
$677,871
$677.9K
Cap Rate 9%
$527,233
$527.2K
Market Conditions
NOI Build-Up for 12,470 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
$74.8K $6.00/SF
− Vacancy
−$7.0K −$0.56/SF
EGI
$67.8K $5.44/SF
− OpEx
−$20.3K −$1.63/SF
NOI
$47.5K $3.81/SF
Area
LaPorte County, IN
Vacancy
9.40%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
30.00%
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%
$949,020
Cap Rate 7%
$677,871
Cap Rate 9%
$527,233
Alternative Uses
Best Use
Office B
$1.82M
$1.59M – $2.12M
NOI $127,381 @ 7.0% cap · market cap 21.27%
Second Best
Retail
$1.68M
$1.47M – $1.96M
NOI $117,440 @ 7.0% cap · market cap 19.61%
Theoretical Best
Specialty Retail
$3.47M
$3.03M – $4.04M
NOI $242,669 @ 7.0% cap · market cap 40.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,069
Businesses Nearby
Explore this area
Business Placement
Demographics for 46360, IN
44,209
Population
21,652
Households
2
Avg Household Size
42
Median Age
23%
College-Educated
90%
High-School Grad
76.6 sq mi
ZIP Area
577
Density / Sq Mi
$59,641
Median Household Income
$36,738
Median Earnings
$924
Median Rent
$155,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Multi-tenant property near South Shore train station and luxury apartments.
Where is this mixed-use property located?
The property is located at 1416 Franklin St Michigan City, IN.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Multi‑tenant property with strong investment and income potential.; Located 3 blocks from the new South Shore train Station and "The Franklin" luxury apartment development.; Includes a street‑level three‑office suite and a separate retail space.
