Updated Mixed-Use Downtown
For Sale
$279,900
Pending
202 S 3rd St, Watertown, WI 53094
Street-level commercial space pairs with two leased one-bedroom apartments.
Property Size1,880 SF
Days on Market19
Property Features for 202 S 3rd St
General Information
Standard status
Pending
Size
1,880 SF
Occupancy
100%
Net Operating Income
$26,434
Taxes and HOA fees
Annual Taxes
$1,296
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
Design Realty, LLC
(920) 819-2158
Listed By:
Jessica Janssen · License #9473231
(920) 819-2158
Source:
Exprealty
Added: Jul 23
Changed: Aug 8
Last Checked: Aug 10 at 10:19AM
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 Design Realty, LLC
Investment Insights
Based on property information with market context.
This mixed-use property combines 940 SF of street-level retail or commercial space with 940 SF of upper-level residential space. The second floor contains two one-bedroom apartments, creating a blend of commercial and residential occupancy within the same building. All areas have been updated and modernized, while the mechanical systems and roof are described as being in good condition.
Located at 202 S 3rd St in Watertown, the property sits in the downtown corridor, one block from Main St and along a major north-south thoroughfare. Every space is currently occupied under leases extending into 2027.
Located at 202 S 3rd St in Watertown, the property sits in the downtown corridor, one block from Main St and along a major north-south thoroughfare. Every space is currently occupied under leases extending into 2027.
Key Highlights
- 1,880 SF mixed‑use property with commercial and residential components
- 940 SF street‑level retail or commercial space
- Upper level includes two 1‑bedroom apartments totaling 940 SF
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
$19,035
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
6.80%
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%
$380,700
$380.7K
Cap Rate 7%
$271,929
$271.9K
Cap Rate 9%
$211,500
$211.5K
Market Conditions
NOI Build-Up for 1,880 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
$33.8K $18.00/SF
− Vacancy
−$3.4K −$1.80/SF
EGI
$30.5K $16.20/SF
− OpEx
−$11.4K −$6.07/SF
NOI
$19.0K $10.13/SF
Area
Dodge County, WI
Vacancy
10.00%
Lease Rate
$18.00 /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%
$380,700
Cap Rate 7%
$271,929
Cap Rate 9%
$211,500
Alternative Uses
Best Use
Mixed Use
$271.9K
$237.9K – $317.3K
NOI $19,035 @ 7.0% cap · market cap 6.80%
Second Best
Retail
$249.1K
$217.9K – $290.6K
NOI $17,434 @ 7.0% cap · market cap 6.23%
Theoretical Best
Office A
$408.4K
$357.4K – $476.5K
NOI $28,588 @ 7.0% cap · market cap 10.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
298
Businesses Nearby
Explore this area
Business Placement
Demographics for 53094, WI
18,510
Population
7,387
Households
2.5
Avg Household Size
39
Median Age
22%
College-Educated
92%
High-School Grad
88.8 sq mi
ZIP Area
208
Density / Sq Mi
$71,973
Median Household Income
$40,673
Median Earnings
$1,039
Median Rent
$223,900
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 - Street-level commercial space pairs with two leased one-bedroom apartments.
Where is this mixed-use property located?
The property is located at 202 S 3rd St Watertown, WI.
What is the asking price?
The asking price for this property is $279,900.
What are key features of this property?
This property features: 1,880 SF mixed‑use property with commercial and residential components; 940 SF street‑level retail or commercial space; Upper level includes two 1‑bedroom apartments totaling 940 SF
