Historic 14-Office
For Sale
$1,600,000
401 Wisconsin Ave, Madison, WI 53703
Downtown office property with period character and a remodeled lower-level lounge/apartment area.
Property Size6,006 SF
Price / SF$266.40
Days on Market129
Property Features for 401 Wisconsin Ave
General Information
Standard status
Active
Size
6,006 SF
Additional Details
Office Units
14
Amenities
remodeled lounge/apartment area
Building Details
Year Built
1910
Construction
brick
Tenancy
Single
Listing Agency:
Sprinkman Real Estate
(608) 334-9042
Listed By:
Chas Martin
Source:
Holtrealestateteam
Added: Apr 24
Changed: Aug 30
Last Checked: Aug 25 at 4:51AM
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 Sprinkman Real Estate
Investment Insights
Based on property information with market context.
Built in 1910, this 6,006-square-foot office building provides 14 offices within a historic commercial setting. The property features a classic brick exterior and architectural details associated with its original construction, while a remodeled basement area adds a lounge/apartment configuration with a full kitchen and bathroom.
Located at 401 Wisconsin Avenue in downtown Madison, the property is near Lake Mendota and the Capitol Square. A longtime tenant occupies the building under a current lease, and on-site parking is identified among the property features. Buyers are responsible for confirming zoning and building requirements.
Located at 401 Wisconsin Avenue in downtown Madison, the property is near Lake Mendota and the Capitol Square. A longtime tenant occupies the building under a current lease, and on-site parking is identified among the property features. Buyers are responsible for confirming zoning and building requirements.
Key Highlights
- 6,006‑square‑foot office building constructed in 1910
- 14 offices within the building
- Remodeled basement lounge/apartment area with full kitchen and bath
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
$101,319
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
6.33%
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%
$2,026,380
$2.0M
Cap Rate 7%
$1,447,414
$1.4M
Cap Rate 9%
$1,125,767
$1.1M
Market Conditions
NOI Build-Up for 6,006 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
$158.6K $26.40/SF
− Vacancy
−$23.5K −$3.91/SF
EGI
$135.1K $22.49/SF
− OpEx
−$33.8K −$5.62/SF
NOI
$101.3K $16.87/SF
Area
Madison, WI
Vacancy
14.80%
Lease Rate
$26.40 /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%
$2,026,380
Cap Rate 7%
$1,447,414
Cap Rate 9%
$1,125,767
Alternative Uses
Best Use
Office B
$1.45M
$1.27M – $1.69M
NOI $101,319 @ 7.0% cap · market cap 6.33%
Second Best
Mixed Use
$1.18M
$1.04M – $1.38M
NOI $82,883 @ 7.0% cap · market cap 5.18%
Theoretical Best
Office A
$1.75M
$1.54M – $2.05M
NOI $122,811 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,097
Businesses Nearby
Explore this area
Business Placement
Demographics for 53703, WI
38,512
Population
21,025
Households
1.8
Avg Household Size
27
Median Age
69%
College-Educated
98%
High-School Grad
1.8 sq mi
ZIP Area
21,396
Density / Sq Mi
$46,618
Median Household Income
$27,923
Median Earnings
$1,445
Median Rent
$472,000
Median Home Value
Market
Vacancy Rate% for Office in Madison, WI
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Downtown office property with period character and a remodeled lower-level lounge/apartment area.
Where is this office building located?
The property is located at 401 Wisconsin Ave Madison, WI.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 6,006‑square‑foot office building constructed in 1910; 14 offices within the building; Remodeled basement lounge/apartment area with full kitchen and bath
