Building Details

Year Built 1947

Buildings 1

Building Size 1,770 SF

Listing Agency: REMAX ONE m***@remax.net Show Phone

Listed By: Michael Jones · License #SP30705101 Show Phone

Source: Exprealty

Added: Jul 25 Changed: Aug 11 Last Checked: Aug 11 at 7:29AM

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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 REMAX ONE

Investment Insights

Based on property information with market context.

Located at 226 E. Pendleton Avenue, this 1,770-square-foot storefront property occupies a 5,576-square-foot lot in downtown Lapel. Constructed in 1947, the building is classified under C2 Downtown Commercial zoning, with the source identifying support for retail, office, restaurant, cafe, bakery, professional service, financial, medical, and legal uses.

The property fronts East Pendleton Avenue and offers access to surrounding communities including Pendleton, Anderson, and Fishers, with Interstate 69 also identified as a convenient regional connection. Its downtown setting places the building near local businesses and residential neighborhoods, supporting a range of commercial occupancy concepts within the stated zoning framework.

Key Highlights

• 1,770‑square‑foot commercial building on a 5,576‑square‑foot lot
• C2 Downtown Commercial zoning
• Constructed in 1947

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

$23,303

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

7.90%

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%

$466,060 $466.1K

Cap Rate 7%

$332,900 $332.9K

Cap Rate 9%

$258,922 $258.9K

Market Conditions

NOI Build-Up for 1,770 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

$34.4K $19.44/SF

− Vacancy

−$3.3K −$1.89/SF

EGI

$31.1K $17.55/SF

− OpEx

−$7.8K −$4.39/SF

NOI

$23.3K $13.17/SF

Area

Madison County, IN

Vacancy

9.70%

Lease Rate

$19.44 /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%

$466,060

Cap Rate 7%

$332,900

Cap Rate 9%

$258,922

Alternative Uses

Best Use

Office B

$332.9K

$291.3K – $388.4K (±1% cap)

NOI $23,303 @ 7.0% cap · market cap 7.90%

Second Best

Retail

$239.0K

$209.1K – $278.8K (±1% cap)

NOI $16,727 @ 7.0% cap · market cap 5.67%

Theoretical Best

Office A

$408.0K

$357.0K – $476.0K (±1% cap)

NOI $28,557 @ 7.0% cap · market cap 9.68%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

RE/MAX At The Crossing - The Performance ... Real Estate Agency

Suggested Use

Top Pick Building Supply Real Estate Agency Dental Office Law Firm Kitchen & Bath Showroom Furniture & Home Goods

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

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

110

Businesses Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Demographics for 46051, IN

2,811

Population

1,192

Households

2.4

Avg Household Size

40

Median Age

30%

College-Educated

95%

High-School Grad

15.5 sq mi

ZIP Area

181

Density / Sq Mi

$77,411

Median Household Income

$51,885

Median Earnings

$1,253

Median Rent

$190,700

Median Home Value

Market

Vacancy Rate% for Office in Midwest region

13.7% 2019

15.6% 2020

17.1% 2021

18.9% 2022

21% 2023

22% 2024

21.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this storefront properties 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?

Storefront property - C2 zoning supports retail, office, restaurant, and service-oriented commercial uses.

Where is this storefront property located?

The property is located at 226 E Pendleton Ave Lapel, IN.

What is the asking price?

The asking price for this property is $295,000.

What are key features of this property?

This property features: 1,770‑square‑foot commercial building on a 5,576‑square‑foot lot; C2 Downtown Commercial zoning; Constructed in 1947