Industrial Investment
For Sale
Contact for pricing
3920 Kennedy Rd, Janesville, WI 53545
Multi-tenant industrial property on 6.38 acres with existing leases and income from retail and tower operations.
Property Size60,520 SF
Lot Size6.38 Acres
Price / SF$65.35
Days on Market57
Property Features for 3920 Kennedy Rd
General Information
Standard status
Active
Size
60,520 SF
Lot size
6.38 Acres
Property subtype
Industrial
Occupancy
100%
Lease Type
NNN
Net Operating Income
$261,760
Additional Details
Highway Access
Yes
Building Details
Year Built
1998
Listing Agency:
Coldwell Banker Commercial McGuire Mears & Associates
(608) 314-8257
Listed By:
Adam Shultz · License #59385 - 90
Source:
Crexi
Added: Jun 17
Changed: Aug 12
Last Checked: Aug 12 at 1:42PM
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 Coldwell Banker Commercial McGuire Mears & Associates
Investment Insights
Based on property information with market context.
This industrial investment property offers warehouse and distribution functionality in a configuration totaling about 60,000 square feet on 6.38 acres. The asset includes current in-place income supported by a market-rate Costco-Innovel lease and additional cell tower income. A separate 40,000-square-foot space is currently leased below market through August 2027.
Located in Janesville’s established Kennedy Road corridor, the property provides convenient regional access to I-90 via Hwy 14 and Hwy 26. This placement supports a logistics-oriented tenant mix and helps facilitate transportation connectivity for distribution needs.
For buyers and operators, the combination of anchored retail-leaning tenancy and tower income can help support overall cash flow, while the below-market lease provides a documented re-leasing window through August 2027. The property’s existing lease structure may be well suited for investors seeking a managed industrial asset with multiple income streams and clear near-term leasing considerations.
Located in Janesville’s established Kennedy Road corridor, the property provides convenient regional access to I-90 via Hwy 14 and Hwy 26. This placement supports a logistics-oriented tenant mix and helps facilitate transportation connectivity for distribution needs.
For buyers and operators, the combination of anchored retail-leaning tenancy and tower income can help support overall cash flow, while the below-market lease provides a documented re-leasing window through August 2027. The property’s existing lease structure may be well suited for investors seeking a managed industrial asset with multiple income streams and clear near-term leasing considerations.
Key Highlights
- 60,000 SF industrial investment property in Janesville, WI, built in 1998
- Set on 6.38 acres along Janesville’s Kennedy Road corridor
- Access to I‑90 via Hwy 14 and Hwy 26
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
$190,994
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
4.83%
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%
$3,819,880
$3.8M
Cap Rate 7%
$2,728,486
$2.7M
Cap Rate 9%
$2,122,156
$2.1M
Market Conditions
NOI Build-Up for 60,520 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
$246.9K $4.08/SF
− Vacancy
−$22.2K −$0.37/SF
EGI
$224.7K $3.71/SF
− OpEx
−$33.7K −$0.56/SF
NOI
$191.0K $3.16/SF
Area
Rock County, WI
Vacancy
9.00%
Lease Rate
$4.08 /SF/Yr
Expense Ratio
15.00%
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%
$3,819,880
Cap Rate 7%
$2,728,486
Cap Rate 9%
$2,122,156
Alternative Uses
Best Use
Warehouse
$2.73M
$2.39M – $3.18M
NOI $190,994 @ 7.0% cap · market cap 4.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$14.54M
$12.73M – $16.97M
NOI $1,018,043 @ 7.0% cap · market cap 25.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
559
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53545, WI
23,318
Population
11,170
Households
2.1
Avg Household Size
41
Median Age
29%
College-Educated
94%
High-School Grad
22.5 sq mi
ZIP Area
1,036
Density / Sq Mi
$70,730
Median Household Income
$42,567
Median Earnings
$1,006
Median Rent
$204,000
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
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Frequently Asked Questions
What type of property is this?
Warehouse - Multi-tenant industrial property on 6.38 acres with existing leases and income from retail and tower operations.
Where is this warehouse located?
The property is located at 3920 Kennedy Rd Janesville, WI.
What is the asking price?
The asking price for this property is $3,955,000.
What are key features of this property?
This property features: 60,000 SF industrial investment property in Janesville, WI, built in 1998; Set on 6.38 acres along Janesville’s Kennedy Road corridor; Access to I‑90 via Hwy 14 and Hwy 26
