Renovated Eight-Unit Apartment
New
For Sale
Contact for pricing
509 E Commercial Avenue, Lowell, IN 46356
Brick construction and dedicated rear parking support a fully updated multifamily asset in a downtown setting.
Property Size4,740 SF
Price / SF$156.12
Days on Market6
Property Features for 509 E Commercial Avenue
General Information
Standard status
Active
Size
4,740 SF
Class
B
Total Parking Spaces
10
Property subtype
Multifamily
Investment Type
Stabilized
Net Operating Income
$55,016
Additional Details
Multifamily Units
8
Building Details
Year Built
1924
Year Renovated
2018
Buildings
1
Units
8
Tenancy
Multi
Construction
brick
Listing Agency:
Kiser Group
Listed By:
Katie Nunez · License #RB19000915
Source:
Crexi
Added: Aug 4
Changed: Aug 9
Last Checked: Aug 9 at 10:02AM
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 Kiser Group
Investment Insights
Based on property information with market context.
Built in 1924, this 4,740-square-foot apartment building contains eight units within a brick structure. Every apartment has been renovated. Five units received comprehensive renovations, including new plumbing and electrical systems, between 2018 and 2023; the remaining three were renovated during 2024 and 2025. The property also includes a dedicated rear parking area with 10 spaces.
The building is located on Commercial Avenue in downtown Lowell, within walking distance of restaurants, retail, parks, and community amenities. Its setting provides access to Northwest Indiana and the broader Chicagoland employment base.
The building is located on Commercial Avenue in downtown Lowell, within walking distance of restaurants, retail, parks, and community amenities. Its setting provides access to Northwest Indiana and the broader Chicagoland employment base.
Key Highlights
- Eight‑unit apartment building with 4,740 square feet
- All eight apartments renovated, including three completed in 2024 and 2025
- Five units received gut renovations between 2018 and 2023
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
$41,936
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
5.67%
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%
$838,720
$838.7K
Cap Rate 7%
$599,086
$599.1K
Cap Rate 9%
$465,956
$466.0K
Market Conditions
NOI Build-Up for 4,740 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
$80.8K $17.04/SF
− Vacancy
−$4.5K −$0.95/SF
EGI
$76.2K $16.09/SF
− OpEx
−$34.3K −$7.24/SF
NOI
$41.9K $8.85/SF
Area
Lake County, IN
Vacancy
5.60%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
45.00%
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%
$838,720
Cap Rate 7%
$599,086
Cap Rate 9%
$465,956
Alternative Uses
Best Use
Apartment 5plus
$599.1K
$524.2K – $698.9K
NOI $41,936 @ 7.0% cap · market cap 5.67%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.32M
$1.16M – $1.54M
NOI $92,626 @ 7.0% cap · market cap 12.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
Location Intelligence
Trade Area within ½ mile
209
Businesses Nearby
Explore this area
Business Placement
Demographics for 46356, IN
18,668
Population
7,290
Households
2.6
Avg Household Size
41
Median Age
20%
College-Educated
96%
High-School Grad
112.5 sq mi
ZIP Area
166
Density / Sq Mi
$87,535
Median Household Income
$51,151
Median Earnings
$1,190
Median Rent
$256,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Brick construction and dedicated rear parking support a fully updated multifamily asset in a downtown setting.
Where is this apartment building located?
The property is located at 509 E Commercial Avenue Lowell, IN.
What is the asking price?
The asking price for this property is $740,000.
What are key features of this property?
This property features: Eight‑unit apartment building with 4,740 square feet; All eight apartments renovated, including three completed in 2024 and 2025; Five units received gut renovations between 2018 and 2023
