Auto Shop with Vehicle Storage
For Sale
$440,000
2400 W Ridge Rd, Gary, IN 46408
M-1 Light Manufacturing zoning supports automotive, industrial, manufacturing, and service-related operations.
Property Size5,832 SF
Price / SF$75.45
Days on Market35
Property Features for 2400 W Ridge Rd
General Information
Standard status
Active
Size
5,832 SF
Zoning
M-1 Light Manufacturing
Site & Location
Road Access
Yes
Outdoor Storage
Yes
Additional Details
Service Bays
3
Taxes and HOA fees
Annual Taxes
$1,536
Amenities
new roof
updated electrical panels
open work areas
office space
tool room
parts storage
industrial shelving
Building Details
Buildings
1
Listing Agency:
Integrity Realty Partners
(219) 628-3432
Listed By:
Angela Manning · License #RB17000786
(219) 628-3432
Source:
Exprealty
Added: Jul 6
Changed: Aug 8
Last Checked: Aug 8 at 9:44AM
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 Integrity Realty Partners
Investment Insights
Based on property information with market context.
This 5,832-square-foot commercial building is configured for automotive work, with three vehicle lifts and broad open areas for shop operations. The property also includes office space, a tool room, parts storage, industrial shelving, and a yard suitable for vehicle storage, equipment, outdoor inventory, or additional parking. Recent improvements include a new roof with new sheeting and updated electrical panels.
Located at 2400 W Ridge Road in Gary, Indiana, the property fronts a heavily traveled commercial corridor with visibility to thousands of passing vehicles daily. M-1 Light Manufacturing zoning allows for a range of automotive, industrial, manufacturing, and service-related business applications.
Located at 2400 W Ridge Road in Gary, Indiana, the property fronts a heavily traveled commercial corridor with visibility to thousands of passing vehicles daily. M-1 Light Manufacturing zoning allows for a range of automotive, industrial, manufacturing, and service-related business applications.
Key Highlights
- 5,832‑square‑foot commercial building configured for automotive operations
- Three vehicle lifts with expansive open work areas
- New roof with new sheeting and updated electrical panels
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
$33,834
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
7.69%
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%
$676,680
$676.7K
Cap Rate 7%
$483,343
$483.3K
Cap Rate 9%
$375,933
$375.9K
Market Conditions
NOI Build-Up for 5,832 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
$51.1K $8.76/SF
− Vacancy
−$2.8K −$0.47/SF
EGI
$48.3K $8.29/SF
− OpEx
−$14.5K −$2.49/SF
NOI
$33.8K $5.80/SF
Area
Lake County, IN
Vacancy
5.39%
Lease Rate
$8.76 /SF/Yr
Expense Ratio
30.00%
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%
$676,680
Cap Rate 7%
$483,343
Cap Rate 9%
$375,933
Alternative Uses
Best Use
Retail
$802.9K
$702.5K – $936.7K
NOI $56,200 @ 7.0% cap · market cap 12.77%
Second Best
Industrial
$483.3K
$422.9K – $563.9K
NOI $33,834 @ 7.0% cap · market cap 7.69%
Theoretical Best
Specialty Retail
$1.63M
$1.42M – $1.90M
NOI $113,965 @ 7.0% cap · market cap 25.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Service bays
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
355
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46408, IN
15,109
Population
7,861
Households
1.9
Avg Household Size
38
Median Age
12%
College-Educated
84%
High-School Grad
9.7 sq mi
ZIP Area
1,558
Density / Sq Mi
$47,063
Median Household Income
$35,163
Median Earnings
$1,016
Median Rent
$96,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - M-1 Light Manufacturing zoning supports automotive, industrial, manufacturing, and service-related operations.
Where is this auto shop located?
The property is located at 2400 W Ridge Rd Gary, IN.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: 5,832‑square‑foot commercial building configured for automotive operations; Three vehicle lifts with expansive open work areas; New roof with new sheeting and updated electrical panels
