Downtown Mixed-Use Building with
For Sale
$1,590,000
521 Franklin St, Michigan City, IN 46360
Ten-unit property combines street-level commercial space with apartments near arts district retail and dining.
Property Size21,057 SF
Price / SF$75.51
Days on Market317
Property Features for 521 Franklin St
General Information
Standard status
Active
Size
21,057 SF
Units
Multifamily Units
7
Office Units
2
Building Details
Tenancy
Multi
Listing Agency:
Coldwell Banker Realty
(760) 685-6839
Listed By:
Daren Huber · License #RB15000509
(760) 685-6839
Source:
Exprealty
Added: Sep 29, 2025
Changed: Jul 10
Last Checked: Aug 10 at 9:20AM
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 Realty
Investment Insights
Based on property information with market context.
This for-sale mixed-use building consists of 10 total units: three street-level commercial spaces and seven apartments upstairs. The commercial component includes two office/retail storefront spaces and one restaurant space with established infrastructure. The residential portion features seven unique units, including open loft-style studio options and one-bedroom apartments.
Located at 521 Franklin St in Michigan City, the property is described as being on a highly visible block within the Arts District. The surrounding area includes galleries, shops, and restaurants, supporting a tenant mix that can serve both foot traffic and nearby downtown activity.
For owners seeking a combined residential and commercial setup, the layout provides multiple income streams within a single building. Retail/office tenants can take advantage of street-level storefront exposure, while the restaurant space is positioned for a food-and-beverage use under the property’s existing buildout. Upstairs, the mix of studio and one-bedroom apartments gives flexibility for leasing to residents who want a downtown arts-district address.
Located at 521 Franklin St in Michigan City, the property is described as being on a highly visible block within the Arts District. The surrounding area includes galleries, shops, and restaurants, supporting a tenant mix that can serve both foot traffic and nearby downtown activity.
For owners seeking a combined residential and commercial setup, the layout provides multiple income streams within a single building. Retail/office tenants can take advantage of street-level storefront exposure, while the restaurant space is positioned for a food-and-beverage use under the property’s existing buildout. Upstairs, the mix of studio and one-bedroom apartments gives flexibility for leasing to residents who want a downtown arts-district address.
Key Highlights
- 10‑unit mixed‑use building with 3 street‑level commercial spaces and 7 upstairs apartments
- Includes two office/retail storefronts and one restaurant space with established infrastructure
- Apartment mix includes open loft‑style studios and one‑bedroom units
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
$142,609
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
8.97%
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%
$2,852,180
$2.9M
Cap Rate 7%
$2,037,271
$2.0M
Cap Rate 9%
$1,584,544
$1.6M
Market Conditions
NOI Build-Up for 21,057 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
$252.7K $12.00/SF
− Vacancy
−$24.5K −$1.16/SF
EGI
$228.2K $10.84/SF
− OpEx
−$85.6K −$4.06/SF
NOI
$142.6K $6.77/SF
Area
LaPorte County, IN
Vacancy
9.70%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,852,180
Cap Rate 7%
$2,037,271
Cap Rate 9%
$1,584,544
Alternative Uses
Best Use
Specialty Retail
$5.85M
$5.12M – $6.83M
NOI $409,774 @ 7.0% cap · market cap 25.77%
Second Best
Retail
$2.83M
$2.48M – $3.31M
NOI $198,311 @ 7.0% cap · market cap 12.47%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
7
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
925
Businesses Nearby
Explore this area
Business Placement
Demographics for 46360, IN
44,209
Population
21,652
Households
2
Avg Household Size
42
Median Age
23%
College-Educated
90%
High-School Grad
76.6 sq mi
ZIP Area
577
Density / Sq Mi
$59,641
Median Household Income
$36,738
Median Earnings
$924
Median Rent
$155,900
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?
Mixed-use property - Ten-unit property combines street-level commercial space with apartments near arts district retail and dining.
Where is this mixed-use property located?
The property is located at 521 Franklin St Michigan City, IN.
What is the asking price?
The asking price for this property is $1,590,000.
What are key features of this property?
This property features: 10‑unit mixed‑use building with 3 street‑level commercial spaces and 7 upstairs apartments; Includes two office/retail storefronts and one restaurant space with established infrastructure; Apartment mix includes open loft‑style studios and one‑bedroom units
