Milwaukee Mixed-Use Riverside
For Sale
$5,375,000
227 N Water St, Milwaukee, WI 53202
Historic Third Ward apartments with commercial suites and riverwalk access.
Property Size26,749 SF
Price / SF$200.94
Days on Market156
Property Features for 227 N Water St
General Information
Standard status
Active
Size
26,749 SF
Property subtype
Multifamily
Occupancy
100%
Amenities
7.10% CAP Rate
Desirable Historic Third Ward Location
In-Unit Washers and Dryers, Central Air-Conditioning, and Stainless Steel Appliance Packages
Building Details
Units
16
Listed By:
Matt Whiteside · License #License(s): WI: 56948-090
(262) 364-1930
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 20
Last Checked: Sep 5 at 4:07AM
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 Matt Whiteside
Investment Insights
Based on property information with market context.
Grand Riverside Apartments is a mixed-use property in Milwaukee’s Historic Third Ward, featuring 16 apartment homes and 2 commercial suites. The property contains approximately 21,160 square feet of apartment homes and 5,589 square feet of commercial space, totaling 26,749 square feet. The residential unit mix includes four one-bedroom, one-bathroom units at 1,018 square feet and four one-bedroom, two-bathroom units at 1,081 square feet. Additionally, there are four two-bedroom, two-bathroom units at 1,557 square feet and four two-bedroom, two-bathroom plus den units at 1,643 square feet. The property also features two ground-level commercial suites: one at 2,753 square feet and the other at 2,836 square feet. Apartment homes feature open floor plans with exposed wood-beamed ceilings, cream city brick accent walls, bamboo flooring, and granite countertops. Units are equipped with in-unit washers and dryers, central air-conditioning, and stainless steel appliance packages including refrigerator, range and oven, dishwasher, and microwave. Many units also offer waterfront views and direct access to the Milwaukee Riverwalk. Residential tenants are responsible for heat, gas, and electric utilities. Water, sewer, and trash services are paid by ownership and billed back to tenants through a third-party RUBS system. Commercial tenants are responsible for their CAM Share (real estate taxes, special assessments, snow, management fee, and insurance), as well as heat, electric, gas, water and sewer, and cleaning expenses. All such utilities are separately metered for commercial suites. The Historic Third Ward is recognized as the city’s premier shopping, dining, and arts district. The neighborhood features a concentration of upscale retailers, art galleries, restaurants, professional services, and theaters. The district also hosts popular events and is home to the Milwaukee Public Market.
Key Highlights
- Premier location in Milwaukee's Historic Third Ward, known for shopping and dining.
- Income potential from residential units and commercial suites, with $7,165/month commercial income.
- High‑end apartment features:** open floor plans, exposed wood‑beamed ceilings, cream city brick, and stainless steel appliances.
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
$249,138
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
4.64%
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%
$4,982,760
$5.0M
Cap Rate 7%
$3,559,114
$3.6M
Cap Rate 9%
$2,768,200
$2.8M
Market Conditions
NOI Build-Up for 26,749 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
$471.9K $17.64/SF
− Vacancy
−$18.9K −$0.71/SF
EGI
$453.0K $16.93/SF
− OpEx
−$203.8K −$7.62/SF
NOI
$249.1K $9.31/SF
Area
Milwaukee, WI
Vacancy
4.00%
Lease Rate
$17.64 /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%
$4,982,760
Cap Rate 7%
$3,559,114
Cap Rate 9%
$2,768,200
Alternative Uses
Best Use
Apartment 5plus
$3.56M
$3.11M – $4.15M
NOI $249,138 @ 7.0% cap · market cap 4.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.43M
$5.62M – $7.50M
NOI $449,961 @ 7.0% cap · market cap 8.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,595
Businesses Nearby
Explore this area
Business Placement
Demographics for 53202, WI
27,897
Population
18,629
Households
1.5
Avg Household Size
31
Median Age
66%
College-Educated
98%
High-School Grad
2.1 sq mi
ZIP Area
13,284
Density / Sq Mi
$68,482
Median Household Income
$52,339
Median Earnings
$1,234
Median Rent
$298,000
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Historic Third Ward apartments with commercial suites and riverwalk access.
Where is this apartment building located?
The property is located at 227 N Water St Milwaukee, WI.
What is the asking price?
The asking price for this property is $5,375,000.
What are key features of this property?
This property features: Premier location in Milwaukee's Historic Third Ward, known for shopping and dining.; Income potential from residential units and commercial suites, with $7,165/month commercial income.; High‑end apartment features:** open floor plans, exposed wood‑beamed ceilings, cream city brick, and stainless steel appliances.
