Historic Office
For Sale
$449,900
227 E Jefferson St, Franklin, IN 46131
Character-rich commercial property combining preserved architectural details with extensive modern system upgrades.
Property Size2,889 SF
Price / SF$155.73
Days on Market42
Property Features for 227 E Jefferson St
General Information
Standard status
Active
Size
2,889 SF
Amenities
covered front porch
deck
landscaping
Building Details
Year Built
1800
Listing Agency:
Steve Lew Real Estate Group, LLC
(317) 658-2042
Listed By:
Steve Lew · License #RB14046291
Source:
Eveloteam
Added: Jul 21
Changed: Aug 31
Last Checked: Aug 31 at 1:21AM
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 Steve Lew Real Estate Group, LLC
Investment Insights
Based on property information with market context.
This 2,889-square-foot office building occupies a historic American residence adapted for commercial use. Original details include detailed exterior trim, a covered front porch, a traditional vestibule, high ceilings, woodwork, transom doorways, and leaded stained-glass windows. The property also features a kitchen, rear parking, and a deck.
Major improvements completed over the past decade include a new roof, electrical updates, restored kitchen cabinetry with granite countertops, most plumbing replacements, new main sewer and water lines, upper-level window replacements, and a new deck. A complete HVAC system and water heater were added three years ago, followed by work on the front porch, main-level windows, front door, exterior paint, landscaping, and rear parking.
The building is within walking distance of downtown Franklin shops, dining, and entertainment.
Major improvements completed over the past decade include a new roof, electrical updates, restored kitchen cabinetry with granite countertops, most plumbing replacements, new main sewer and water lines, upper-level window replacements, and a new deck. A complete HVAC system and water heater were added three years ago, followed by work on the front porch, main-level windows, front door, exterior paint, landscaping, and rear parking.
The building is within walking distance of downtown Franklin shops, dining, and entertainment.
Key Highlights
- 2,889‑square‑foot office building
- Historic architectural details include leaded stained glass, transom doorways, woodwork, and a covered front porch
- New roof, updated electrical system, most plumbing, and new main sewer and water lines
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
$36,466
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
8.11%
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%
$729,320
$729.3K
Cap Rate 7%
$520,943
$520.9K
Cap Rate 9%
$405,178
$405.2K
Market Conditions
NOI Build-Up for 2,889 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
$57.2K $19.80/SF
− Vacancy
−$8.6K −$2.97/SF
EGI
$48.6K $16.83/SF
− OpEx
−$12.2K −$4.21/SF
NOI
$36.5K $12.62/SF
Area
Johnson County, IN
Vacancy
15.00%
Lease Rate
$19.80 /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%
$729,320
Cap Rate 7%
$520,943
Cap Rate 9%
$405,178
Alternative Uses
Best Use
Office B
$520.9K
$455.8K – $607.8K
NOI $36,466 @ 7.0% cap · market cap 8.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$728.0K
$637.0K – $849.4K
NOI $50,962 @ 7.0% cap · market cap 11.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
787
Businesses Nearby
Explore this area
Business Placement
Demographics for 46131, IN
32,869
Population
13,151
Households
2.5
Avg Household Size
38
Median Age
25%
College-Educated
92%
High-School Grad
126.0 sq mi
ZIP Area
261
Density / Sq Mi
$81,914
Median Household Income
$44,797
Median Earnings
$1,114
Median Rent
$227,800
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Character-rich commercial property combining preserved architectural details with extensive modern system upgrades.
Where is this office building located?
The property is located at 227 E Jefferson St Franklin, IN.
What is the asking price?
The asking price for this property is $449,900.
What are key features of this property?
This property features: 2,889‑square‑foot office building; Historic architectural details include leaded stained glass, transom doorways, woodwork, and a covered front porch; New roof, updated electrical system, most plumbing, and new main sewer and water lines
