Office Building with Private
For Sale
$749,000
2814 Franklin Street, Michigan City, IN 46360
Commercial Sale, Michigan City, IN
Property Size3,960 SF
Lot Size0.51 Acres
Price / SF$189.14
Days on Market174
Property Features for 2814 Franklin Street
General Information
Property type
Commercial Sale
Property subtype
Office
Parking
27
Parking features
Alley, Off Street
Security features
Security System
Subdivision
Oaklawn Add
Directions
From Hwy 20 Head North On Franklin St. Go through the stoplight at Coolspring Ave. Building will be on the right at the corner of Franklin St and Gardena
Standard status
Active
APN
460133312022000022
Size
3,960 SF
Lot size
0.51 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
42-01-33-312-022 OAKLAWN ADD LOT 1 & VAC 15 FT ALLEY BTW LTS 1 & 2 BLK 3
Tax Annual Amount
5871
Legal Description
42-01-33-312-022 OAKLAWN ADD LOT 1 & VAC 15 FT ALLEY BTW LTS 1 & 2 BLK 3
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Water source
Public
Amenities
skylights
ADA compliant
security system
irrigated landscaping
break area
Building Details
Year built
1962
Listing Agency:
Coldwell Banker Realty · Coldwell Banker Real Estate
(269) 469-3950
Listed By:
Zane Galloway · License #RB16000549
(219) 707-9282
Added: Mar 30
Changed: Sep 15
Last Checked: Sep 19 at 11:06AM
MLS# 836234
Copyright © 2026 Greater Northwest Indiana Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Located at 2814 Franklin Street in Michigan City, this 3,960-square-foot office building sits on 0.5096 acres and was built in 1962. The interior includes a waiting room, reception area sized for four support staff members, 10 offices, two testing rooms, storage areas, and two offices suitable for conference use. Skylights bring natural light into the hallway, while the break area and designated employee bathroom support daily operations.
The property includes a private 27-space parking lot with multiple ingress and egress points, ramp access, two ADA bathrooms, and an active security system. The building is served by public water and public sewer, with forced-air natural gas heating. Roofing improvements include a new vinyl roof and underlayment insulation in 2016, followed by an IB roof coating in 2024. The layout also supports potential occupancy by multiple tenants.
The property includes a private 27-space parking lot with multiple ingress and egress points, ramp access, two ADA bathrooms, and an active security system. The building is served by public water and public sewer, with forced-air natural gas heating. Roofing improvements include a new vinyl roof and underlayment insulation in 2016, followed by an IB roof coating in 2024. The layout also supports potential occupancy by multiple tenants.
Key Highlights
- 3,960‑square‑foot office building on 0.5096 acres
- Private parking lot with 27 spaces and multiple ingress and egress points
- 10 offices, two testing rooms, storage areas, and two conference‑sized offices
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
$40,451
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
5.40%
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%
$809,020
$809.0K
Cap Rate 7%
$577,871
$577.9K
Cap Rate 9%
$449,456
$449.5K
Market Conditions
NOI Build-Up for 3,960 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
$59.4K $15.00/SF
− Vacancy
−$5.5K −$1.38/SF
EGI
$53.9K $13.62/SF
− OpEx
−$13.5K −$3.41/SF
NOI
$40.5K $10.22/SF
Area
LaPorte County, IN
Vacancy
9.20%
Lease Rate
$15.00 /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%
$809,020
Cap Rate 7%
$577,871
Cap Rate 9%
$449,456
Alternative Uses
Best Use
Office B
$577.9K
$505.6K – $674.2K
NOI $40,451 @ 7.0% cap · market cap 5.40%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.10M
$963.3K – $1.28M
NOI $77,063 @ 7.0% cap · market cap 10.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
10
Office units
Location Intelligence
Trade Area within ½ mile
344
Businesses Nearby
Explore this area
Business Placement
Demographics for 46360, IN
44,209
Population
21,652
Households
2
Avg Household Size
42
Median Age
23%
College-Educated
90%
High-School Grad
76.6 sq mi
ZIP Area
577
Density / Sq Mi
$59,641
Median Household Income
$36,738
Median Earnings
$924
Median Rent
$155,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office building - Remodeled office facility with flexible rooms, accessible features, employee amenities, and a layout that can accommodate multiple tenants.
Where is this office building located?
The property is located at 2814 Franklin Street Michigan City, IN.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3,960‑square‑foot office building on 0.5096 acres; Private parking lot with 27 spaces and multiple ingress and egress points; 10 offices, two testing rooms, storage areas, and two conference‑sized offices
