Building Details

Year Built 1957

Buildings 1

Listing Agency: McColly Real Estate

Listed By: Frank Ennis · License #RB14022177 Show Phone

Source: Illianahomesource

Added: Sep 3 Changed: Sep 6 Last Checked: Sep 6 at 2:53PM

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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 McColly Real Estate

Investment Insights

Based on property information with market context.

This 1,290-square-foot retail building, constructed in 1957, provides a freestanding commercial format with on-site parking. Recent improvements include newer mechanical systems, a newer roof, and interior updates, while the remaining finish work allows for further customization.

The property is located at 3232 Michigan St in New Chicago, Indiana. Its existing retail configuration and parking support a range of storefront applications, subject to applicable requirements.

Key Highlights

• 1,290‑square‑foot retail building constructed in 1957
• Newer mechanical systems and roof
• Interior improvements completed

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

$12,431

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

8.88%

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%

$248,620 $248.6K

Cap Rate 7%

$177,586 $177.6K

Cap Rate 9%

$138,122 $138.1K

Market Conditions

NOI Build-Up for 1,290 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

$18.6K $14.40/SF

− Vacancy

−$817 −$0.63/SF

EGI

$17.8K $13.77/SF

− OpEx

−$5.3K −$4.13/SF

NOI

$12.4K $9.64/SF

Area

Lake County, IN

Vacancy

4.40%

Lease Rate

$14.40 /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%

$248,620

Cap Rate 7%

$177,586

Cap Rate 9%

$138,122

Alternative Uses

Best Use

Retail

$177.6K

$155.4K – $207.2K (±1% cap)

NOI $12,431 @ 7.0% cap · market cap 8.88%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$360.1K

$315.1K – $420.1K (±1% cap)

NOI $25,208 @ 7.0% cap · market cap 18.01%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Storefront properties

Suggested Use

Top Pick Real Estate Agency Dental Office Law Firm Spa & Massage Center Nail Salon Hair Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

168

Businesses Nearby

4k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 100%

El Ranchero Dining

3,543 visits/mo 0.4 miles

Demographics for 46342, IN

32,540

Population

13,774

Households

2.4

Avg Household Size

40

Median Age

21%

College-Educated

93%

High-School Grad

35.0 sq mi

ZIP Area

930

Density / Sq Mi

$72,163

Median Household Income

$41,574

Median Earnings

$1,110

Median Rent

$193,400

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

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?

Similar Off Market Nearby

• Bryan's Florist — 1331 W 37th Ave, Hobart, IN 46342

Frequently Asked Questions

What type of property is this?

Storefront property - Compact retail building with parking, newer mechanical systems, a newer roof, and interior improvements.

Where is this storefront property located?

The property is located at 3232 Michigan St New Chicago, IN.

What is the asking price?

The asking price for this property is $140,000.

What are key features of this property?

This property features: 1,290‑square‑foot retail building constructed in 1957; Newer mechanical systems and roof; Interior improvements completed