Mixed-Use Bar and
For Sale
$365,000
2203 Dekoven Ave, Racine, WI 53403
Two-level property combines a restaurant operation with a spacious upstairs apartment.
Property Size2,060 SF
Price / SF$177.18
Days on Market19
Property Features for 2203 Dekoven Ave
General Information
Standard status
Active
Size
2,060 SF
Units
Unit Mix
1 x 3BR/1BA
Multifamily Units
1
Additional Details
Business Included
Yes
Patio
Yes
Amenities
basement storage
garage with smoking room
Building Details
Year Built
1926
Listing Agency:
Berkshire Hathaway HomeServices Metro Realty-Racine
(262) 498-2739
Listed By:
Debra Swenson
Source:
Jwregwi
Added: Aug 14
Changed: Aug 30
Last Checked: Aug 31 at 6:22PM
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 Berkshire Hathaway HomeServices Metro Realty-Racine
Investment Insights
Based on property information with market context.
This mixed-use property at 2203 Dekoven Ave in Racine, WI 53403 combines a bar and restaurant with an upstairs residential apartment. The commercial space includes a patio on the west side, updated kitchen equipment, and substantial storage areas in both the basement and garage. The garage also contains a built-in smoking room.
The upper level features a three-bedroom, one-bath apartment. The property was built in 1926 and includes a rear parking area along with a separate front lot, though the available parking description is not consistent. The layout brings food-and-beverage operations, dedicated storage, and residential space together within one building.
The upper level features a three-bedroom, one-bath apartment. The property was built in 1926 and includes a rear parking area along with a separate front lot, though the available parking description is not consistent. The layout brings food-and-beverage operations, dedicated storage, and residential space together within one building.
Key Highlights
- Upstairs apartment with 3 bedrooms and 1 bath
- Bar and restaurant space with a west‑side patio
- New kitchen equipment included
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
$28,596
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
7.83%
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%
$571,920
$571.9K
Cap Rate 7%
$408,514
$408.5K
Cap Rate 9%
$317,733
$317.7K
Market Conditions
NOI Build-Up for 2,060 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
$39.6K $19.20/SF
− Vacancy
−$1.4K −$0.69/SF
EGI
$38.1K $18.51/SF
− OpEx
−$9.5K −$4.63/SF
NOI
$28.6K $13.88/SF
Area
Racine County, WI
Vacancy
3.60%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$571,920
Cap Rate 7%
$408,514
Cap Rate 9%
$317,733
Alternative Uses
Best Use
Specialty Retail
$408.5K
$357.5K – $476.6K
NOI $28,596 @ 7.0% cap · market cap 7.83%
Second Best
Mixed Use
$304.6K
$266.5K – $355.4K
NOI $21,321 @ 7.0% cap · market cap 5.84%
Theoretical Best
Office A
$495.4K
$433.5K – $578.0K
NOI $34,677 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
12k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 63%
Home Improvements & Furnishings 32%
Electronics 5%
Citgo
Shops & Services
6,584 visits/mo
0.1 miles
JC Licht Ace Racine
Home Improvements & Furnishings
3,872 visits/mo
0.3 miles
Red Dot Storage
Shops & Services
1,003 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
580 visits/mo
0.2 miles
Demographics for 53403, WI
26,269
Population
11,876
Households
2.2
Avg Household Size
38
Median Age
23%
College-Educated
88%
High-School Grad
10.2 sq mi
ZIP Area
2,575
Density / Sq Mi
$58,274
Median Household Income
$37,130
Median Earnings
$1,029
Median Rent
$159,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level property combines a restaurant operation with a spacious upstairs apartment.
Where is this mixed-use property located?
The property is located at 2203 Dekoven Ave Racine, WI.
What is the asking price?
The asking price for this property is $365,000.
What are key features of this property?
This property features: Upstairs apartment with 3 bedrooms and 1 bath; Bar and restaurant space with a west‑side patio; New kitchen equipment included
