9-Unit Multifamily Apartment
For Sale
$1,160,000
Pending
205 Michigan Avenue, Valparaiso, IN 46383
COMMERCIAL - Valparaiso, IN
Property Size9,246 SF
Lot Size0.20 Acres
Days on Market94
Property Features for 205 Michigan Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Rooms
Basement
Parking
9
Parking features
Off Street, Alley
Basement
Interior Entry, Partially Finished, Storage Space
Subdivision
Valparaiso
Directions
Lincolnway west to Michigan avenue two blocks North to property 205 Michigan Ave Valparaiso, IN 46383
Standard status
Pending
APN
640924331005000004
Size
9,246 SF
Lot size
0.20 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
O S S1/2 LOTS 1 & 2 BLK 9
Tax Annual Amount
14337
Legal Description
O S S1/2 LOTS 1 & 2 BLK 9
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Year built
1920
Listing Agency:
Evolution Real Estate Solution
(219) 462-0141
Listed By:
Madison Jirtle
(219) 508-6541
Added: May 20
Changed: Aug 19
Last Checked: Aug 21 at 2:06AM
MLS# 839221
Copyright © 2026 Greater Northwest Indiana Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 9-unit multifamily building at 205 Michigan Avenue includes apartments ranging from studios to three-bedroom layouts. The property contains 9,246 square feet on a 0.2-acre parcel and was built in 1920. A basement is included, along with off-street and alley parking. Public water and public sewer serve the property.
Located in Valparaiso, the building is near shopping, dining, and transportation. The landlord pays for water and heat, an operating detail that should be considered alongside the varied apartment mix and existing property configuration.
Located in Valparaiso, the building is near shopping, dining, and transportation. The landlord pays for water and heat, an operating detail that should be considered alongside the varied apartment mix and existing property configuration.
Key Highlights
- 9‑unit multifamily property with 9,246 square feet
- Apartment mix ranges from studio to 3‑bedroom units
- Built in 1920 on a 0.2‑acre parcel
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
$73,424
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
6.33%
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%
$1,468,480
$1.5M
Cap Rate 7%
$1,048,914
$1.0M
Cap Rate 9%
$815,822
$815.8K
Market Conditions
NOI Build-Up for 9,246 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
$142.0K $15.36/SF
− Vacancy
−$8.5K −$0.92/SF
EGI
$133.5K $14.44/SF
− OpEx
−$60.1K −$6.50/SF
NOI
$73.4K $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%
$1,468,480
Cap Rate 7%
$1,048,914
Cap Rate 9%
$815,822
Alternative Uses
Best Use
Apartment 5plus
$1.05M
$917.8K – $1.22M
NOI $73,424 @ 7.0% cap · market cap 6.33%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$3.50M
$3.07M – $4.09M
NOI $245,302 @ 7.0% cap · market cap 21.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Location Intelligence
Trade Area within ½ mile
1,776
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Unit mix spans studio through three-bedroom apartments with off-street and alley parking.
Where is this apartment building located?
The property is located at 205 Michigan Avenue Valparaiso, IN.
What is the asking price?
The asking price for this property is $1,160,000.
What are key features of this property?
This property features: 9‑unit multifamily property with 9,246 square feet; Apartment mix ranges from studio to 3‑bedroom units; Built in 1920 on a 0.2‑acre parcel
