Historic 25-Unit Apartment
For Sale
$2,000,000
602 W Colfax Ave, South Bend, IN 46601
Five-building apartment portfolio with updated interiors and a varied studio and bedroom-unit mix.
Property Size12,536 SF
Days on Market105
Property Features for 602 W Colfax Ave
General Information
Standard status
Active
Size
12,536 SF
Property subtype
Multifamily
Units
Unit Mix
8 x studio, 13 x 1BR, 3 x 2BR/1BA, 1 x 2BR/2BA
Multifamily Units
25
Additional Details
Cap Rate
8.7%
Amenities
Immediate Cashflow with Upside
Strong Location in Downtown South Bend
Within a Mile of Major Developments: Memorial Hospital Expansion, Diamond View Apartments, Notre Dame Tech Hub, Madison Lifestyle District, AWS Data Center ($11B), GM/Samsung EV Plant ($3.5B).
Building Details
Building Size
12,536 SF
Buildings
5
Units
25
Listing Agency:
Marcus & Millichap - Chicago Downtown
(312) 624-7007
Listed By:
Quentin Benedetto · License #License(s): IL: 475.200479
(312) 624-7007
Source:
Marcusmillichap
Added: May 18
Changed: Aug 29
Last Checked: Aug 29 at 10:52PM
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 Marcus & Millichap - Chicago Downtown
Investment Insights
Based on property information with market context.
This multifamily portfolio includes 5 buildings and 25 apartment units on nearly an acre at 602 W Colfax Ave in South Bend. The unit mix comprises 8 studios, 13 one-bedroom units, 3 two-bedroom/one-bath units, and 1 two-bedroom/two-bath unit. The residences occupy homes originally constructed in the late 1800s and early 1900s, with modern interior updates and exterior renovations supporting the property’s presentation.
The property is located 3 blocks from Main Street in downtown South Bend, along the edge of the West Washington historic district. Nearby destinations and projects include the South Bend Cubs Stadium and Diamond View Apartments development at half a mile, the Madison Lifestyle District at half a mile, the South Bend Memorial Hospital expansion at 1 mile, and the Notre Dame Tribune Building redevelopment project at a quarter mile.
An adjacent 29-unit apartment complex, Nashville Flats, is also identified as a potential companion acquisition, which would bring the combined portfolio to 54 units.
The property is located 3 blocks from Main Street in downtown South Bend, along the edge of the West Washington historic district. Nearby destinations and projects include the South Bend Cubs Stadium and Diamond View Apartments development at half a mile, the Madison Lifestyle District at half a mile, the South Bend Memorial Hospital expansion at 1 mile, and the Notre Dame Tribune Building redevelopment project at a quarter mile.
An adjacent 29-unit apartment complex, Nashville Flats, is also identified as a potential companion acquisition, which would bring the combined portfolio to 54 units.
Key Highlights
- 25 units across 5 buildings
- Unit mix includes 8 studios, 13 one‑bedroom units, and 4 two‑bedroom units
- Nearly an acre of land
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
$103,319
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
5.17%
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%
$2,066,380
$2.1M
Cap Rate 7%
$1,475,986
$1.5M
Cap Rate 9%
$1,147,989
$1.1M
Market Conditions
NOI Build-Up for 12,536 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
$203.1K $16.20/SF
− Vacancy
−$15.2K −$1.22/SF
EGI
$187.9K $14.99/SF
− OpEx
−$84.5K −$6.74/SF
NOI
$103.3K $8.24/SF
Area
South Bend, IN
Vacancy
7.50%
Lease Rate
$16.20 /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%
$2,066,380
Cap Rate 7%
$1,475,986
Cap Rate 9%
$1,147,989
Alternative Uses
Best Use
Apartment 5plus
$1.48M
$1.29M – $1.72M
NOI $103,319 @ 7.0% cap · market cap 5.17%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.17M
$2.78M – $3.70M
NOI $222,002 @ 7.0% cap · market cap 11.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
25
Residential units
Location Intelligence
Trade Area within ½ mile
2,603
Businesses Nearby
Explore this area
Business Placement
Demographics for 46601, IN
5,947
Population
2,862
Households
2.1
Avg Household Size
35
Median Age
22%
College-Educated
81%
High-School Grad
2.0 sq mi
ZIP Area
2,974
Density / Sq Mi
$27,080
Median Household Income
$26,835
Median Earnings
$784
Median Rent
$131,600
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 - Five-building apartment portfolio with updated interiors and a varied studio and bedroom-unit mix.
Where is this apartment building located?
The property is located at 602 W Colfax Ave South Bend, IN.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 25 units across 5 buildings; Unit mix includes 8 studios, 13 one‑bedroom units, and 4 two‑bedroom units; Nearly an acre of land
