Listing Agency: Nicholson Realty 2.0 LLC n***@gmail.com Show Phone

Listed By: Nate Nicholson Show Phone

Source: Exprealty

Added: Jun 26 Changed: Aug 20 Last Checked: Aug 22 at 1:02PM

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Investment Insights

Based on property information with market context.

This well-maintained commercial building is currently operating as a grocery store and offers a functional layout for a variety of commercial uses. The property includes ample parking and a loading dock designed for efficient shipping and receiving. According to the seller, there are no known issues with the building or its mechanical systems.

Located on Main Street in the heart of Fairmount, Indiana, the property provides convenient access to regional destinations. It is approximately 10 minutes from Interstate 69, with Indianapolis and Fort Wayne both within an hour, and Muncie, Anderson, Kokomo, and Marion all within about 30 minutes.

Positioned on more than one acre, the building’s configuration, parking, and dock support a broad set of operating needs, whether continuing retail operations or transitioning to other commercial applications.

Key Highlights

• 10,908 SF commercial building on Main Street in Fairmount, Indiana, currently operating as a grocery store.
• Over one acre with ample parking for customers and employees.
• Loading dock for shipping and receiving.

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

$78,316

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

7.84%

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%

$1,566,320 $1.6M

Cap Rate 7%

$1,118,800 $1.1M

Cap Rate 9%

$870,178 $870.2K

Market Conditions

NOI Build-Up for 10,908 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

$103.4K $9.48/SF

− Vacancy

−$11.3K −$1.03/SF

EGI

$92.1K $8.45/SF

− OpEx

−$13.8K −$1.27/SF

NOI

$78.3K $7.18/SF

Area

Grant County, IN

Vacancy

10.90%

Lease Rate

$9.48 /SF/Yr

Expense Ratio

15.00%

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%

$1,566,320

Cap Rate 7%

$1,118,800

Cap Rate 9%

$870,178

Alternative Uses

Best Use

Specialty Retail

$2.12M

$1.85M – $2.47M (±1% cap)

NOI $148,287 @ 7.0% cap · market cap 14.84%

Second Best

Retail

$1.46M

$1.28M – $1.71M (±1% cap)

NOI $102,487 @ 7.0% cap · market cap 10.26%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Horner's Market Grocery & Convenience Store Primo Water Refill Big Box & Wholesale Store UPS Authorized Shipping ... Courier Service Hunt Brothers Pizza Restaurant

Suggested Use

Top Pick Real Estate Agency Building Supply Spa & Massage Center Hair Salon Nail Salon Kitchen & Bath Showroom

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

169

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 46928, IN

4,557

Population

2,149

Households

2.1

Avg Household Size

47

Median Age

17%

College-Educated

93%

High-School Grad

71.8 sq mi

ZIP Area

63

Density / Sq Mi

$63,387

Median Household Income

$34,869

Median Earnings

$805

Median Rent

$119,400

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Well-maintained grocery store building with ample parking and a loading dock on more than one acre.

Where is this grocery and convenience store located?

The property is located at 201 N Main St Fairmount, IN.

What is the asking price?

The asking price for this property is $999,000.

What are key features of this property?

This property features: 10,908 SF commercial building on Main Street in Fairmount, Indiana, currently operating as a grocery store.; Over one acre with ample parking for customers and employees.; Loading dock for shipping and receiving.