Restaurant with Upstairs
For Sale
$295,000
518 Lincolnway Way, La Porte, IN 46350
Commercial Sale, Laporte, IN
Property Size5,400 SF
Lot Size0.06 Acres
Price / SF$54.63
Days on Market368
Property Features for 518 Lincolnway Way
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
I-94 east to US-35, south to Lincolnway, east to property.
Subdivision
Indiana - LaPorte
Standard status
Active
APN
460635441003000043
Lot size
0.06 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
2329
Utilities
Cooling system
Central Air
Building Details
Year built
1900
Floors in Building
2
Number of units
2
Listing Agency:
A.R.E. Partners Inc.
(312) 300-7237
Listed By:
Antje Gehrken · License #471002284
(312) 339-7655
Added: Aug 20, 2025
Changed: Aug 20
Last Checked: Aug 22 at 12:06PM
MLS# 12451497
Copyright © 2026 Midwest Real Estate Data, LLC. 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.
This mixed-use building, constructed in 1900, combines a restaurant operation with an upper-level apartment. The main floor contains 2,200 square feet and accommodates 54 guests, with a bar, TVs, a 23-tap beer, wine, and nitro system, two single-use restrooms, and a commercial kitchen. Kitchen equipment includes a hood, Ansul system, grease trap, and two split A/C units. The 2,000-square-foot basement adds storage and preparation space, including separate walk-in coolers measuring 7.5' x 14' and 7.5' x 20'.
The 1,200-square-foot upstairs apartment includes 2 bedrooms and 1 bathroom and is currently operating as an Airbnb. Its 2019 updates included appliances, a hot water heater, A/C, and a furnace. Building improvements include plumbing and water lines installed in 2019, a 200-amp electrical panel added in 2018, and a 2019 water heater. Security and fire monitoring systems are in place, and the property has central air. A new operator will need to obtain a liquor license.
The 1,200-square-foot upstairs apartment includes 2 bedrooms and 1 bathroom and is currently operating as an Airbnb. Its 2019 updates included appliances, a hot water heater, A/C, and a furnace. Building improvements include plumbing and water lines installed in 2019, a 200-amp electrical panel added in 2018, and a 2019 water heater. Security and fire monitoring systems are in place, and the property has central air. A new operator will need to obtain a liquor license.
Key Highlights
- 54‑seat restaurant with bar, TVs, and a 23‑tap beer, wine, and nitro system
- 2,200‑square‑foot main floor plus 2,000‑square‑foot basement
- 1,200‑square‑foot, 2‑bedroom, 1‑bath upstairs apartment operating as an Airbnb
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
$20,548
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
6.97%
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%
$410,960
$411.0K
Cap Rate 7%
$293,543
$293.5K
Cap Rate 9%
$228,311
$228.3K
Market Conditions
NOI Build-Up for 5,400 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
$32.4K $6.00/SF
− Vacancy
−$3.0K −$0.56/SF
EGI
$29.4K $5.44/SF
− OpEx
−$8.8K −$1.63/SF
NOI
$20.5K $3.81/SF
Area
LaPorte County, IN
Vacancy
9.40%
Lease Rate
$6.00 /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%
$410,960
Cap Rate 7%
$293,543
Cap Rate 9%
$228,311
Alternative Uses
Best Use
Specialty Retail
$1.50M
$1.31M – $1.75M
NOI $105,085 @ 7.0% cap · market cap 35.62%
Second Best
Apartment 5plus
$620.5K
$543.0K – $723.9K
NOI $43,436 @ 7.0% cap · market cap 14.72%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
439
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46350, IN
44,522
Population
19,576
Households
2.3
Avg Household Size
42
Median Age
24%
College-Educated
92%
High-School Grad
193.5 sq mi
ZIP Area
230
Density / Sq Mi
$75,311
Median Household Income
$44,309
Median Earnings
$920
Median Rent
$199,800
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Mixed-use property with a fully equipped restaurant, commercial kitchen, and upstairs two-bedroom apartment.
Where is this conventional restaurant located?
The property is located at 518 Lincolnway Way La Porte, IN.
What is the asking price?
The asking price for this property is $295,000.
What are key features of this property?
This property features: 54‑seat restaurant with bar, TVs, and a 23‑tap beer, wine, and nitro system; 2,200‑square‑foot main floor plus 2,000‑square‑foot basement; 1,200‑square‑foot, 2‑bedroom, 1‑bath upstairs apartment operating as an Airbnb
