Mixed-Use Building with
For Sale
$380,000
2121 Madison Avenue, Indianapolis, IN 46225
Commercial Sale, Indianapolis, IN
Property Size4,380 SF
Lot Size0.36 Acres
Price / SF$86.76
Days on Market104
Property Features for 2121 Madison Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-3
Parking features
Open, Tandem, Guest, Alley, Garage
Elementary school district
Indianapolis Public Schools
Middle school district
Indianapolis Public Schools
High school district
Indianapolis Public Schools
Directions
GPS Friendly
Subdivision
4910 - Marion - Center
Standard status
Active
APN
491113148003000101
Lot size
0.36 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
Schroluckes Madison Ave Add L6
Tax Annual Amount
2540
Legal Description
Schroluckes Madison Ave Add L6
Building Details
Year built
1944
Floors in Building
2
Listing Agency:
Mark Dietel Realty, LLC
(317) 886-8440
Listed By:
Connor Jones · License #RB22001638
(317) 441-7887
Added: Jun 16
Changed: Sep 25
Last Checked: Sep 27 at 11:06AM
MLS# 22107440
Copyright © 2026 Broker Listing Cooperative®. 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 C-3-zoned property comprises four contiguous, separately platted parcels totaling 0.36 acres. The two-story building combines a ground-floor office with a rear warehouse and drive-in door measuring 10 feet wide by 9 feet high. Upstairs, a renovated two-bedroom, one-bath apartment adds residential space. Heating is provided by a boiler and radiators; the front office and residential sections have newer roofing, while the rear warehouse has an older flat roof.
Three parcels are vacant. The property is in Indianapolis’s near-south corridor, with interstate access and proximity to downtown, Fountain Square, and Bates-Hendricks.
Three parcels are vacant. The property is in Indianapolis’s near-south corridor, with interstate access and proximity to downtown, Fountain Square, and Bates-Hendricks.
Key Highlights
- Four contiguous, separately platted parcels totaling 0.36 acres
- Three of the four parcels are vacant
- Two‑story building combines a ground‑floor office, rear warehouse, and upstairs two‑bedroom, one‑bath apartment
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
$26,513
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
6.98%
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%
$530,260
$530.3K
Cap Rate 7%
$378,757
$378.8K
Cap Rate 9%
$294,589
$294.6K
Market Conditions
NOI Build-Up for 4,380 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
$34.2K $7.80/SF
− Vacancy
−$3.0K −$0.68/SF
EGI
$31.2K $7.12/SF
− OpEx
−$4.7K −$1.07/SF
NOI
$26.5K $6.05/SF
Area
Indianapolis, IN
Vacancy
8.70%
Lease Rate
$7.80 /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%
$530,260
Cap Rate 7%
$378,757
Cap Rate 9%
$294,589
Alternative Uses
Best Use
Office B
$826.1K
$722.9K – $963.8K
NOI $57,829 @ 7.0% cap · market cap 15.22%
Second Best
Mixed Use
$760.2K
$665.2K – $887.0K
NOI $53,217 @ 7.0% cap · market cap 14.00%
Theoretical Best
Office A
$1.09M
$954.0K – $1.27M
NOI $76,317 @ 7.0% cap · market cap 20.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
1
Drive-in doors
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
338
Businesses Nearby
Explore this area
Business Placement
Demographics for 46225, IN
6,503
Population
3,056
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
81%
High-School Grad
4.0 sq mi
ZIP Area
1,626
Density / Sq Mi
$47,917
Median Household Income
$36,132
Median Earnings
$1,104
Median Rent
$123,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Office, warehouse, and residential space sit across four contiguous parcels, with three lots currently vacant.
Where is this mixed-use property located?
The property is located at 2121 Madison Avenue Indianapolis, IN.
What is the asking price?
The asking price for this property is $380,000.
What are key features of this property?
This property features: Four contiguous, separately platted parcels totaling 0.36 acres; Three of the four parcels are vacant; Two‑story building combines a ground‑floor office, rear warehouse, and upstairs two‑bedroom, one‑bath apartment
