Mixed-Use Restaurant
New
For Sale
$289,000
7003 Kennedy Avenue, Hammond, IN 46323
Commercial Sale, Hammond, IN
Property Size2,270 SF
Lot Size0.14 Acres
Price / SF$127.31
Days on Market2
Property Features for 7003 Kennedy Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Rooms
Basement
Parking
6
Parking features
Off Street
Basement
Unfinished
Directions
Northeast corner of Kennedy and 170th
Standard status
Active
APN
450709402001000023
Size
2,270 SF
Lot size
0.14 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
S. 37 FT. OF N. 694.4 FT. OF W. 170 FT. OF NW. SE. S.9 T.36 R.9 .144 A.
Tax Annual Amount
4951
Legal Description
S. 37 FT. OF N. 694.4 FT. OF W. 170 FT. OF NW. SE. S.9 T.36 R.9 .144 A.
Utilities
Sewer type
Public Sewer
Heating system
Central
Water source
Public
Building Details
Year built
1954
Listing Agency:
McCormick Real Estate, Inc.
(219) 663-9300
Listed By:
Tim Polk · License #RB21000495
(219) 779-2092
Added: Sep 10
Last Checked: Sep 11 at 5:06AM
MLS# 845095
Copyright © 2026 Greater Northwest Indiana Association of REALTORS. 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 property contains 2,270 square feet on a 0.144-acre lot. The front portion is configured for restaurant use and includes Super Sub and Key Pizza, a commercial kitchen, staff area, POS system, and office space. The rear includes a 3-bed, 1-bath residential unit with its own furnace and AC. The residence is leased month to month, with the tenant paying separate utilities.
Built in 1954, the property is positioned on Kennedy Avenue in Hammond and includes off-street parking. Public water and public sewer serve the property, while central heating is provided for the commercial space. The site also has room for expansion and a drive-through, as described in the property information.
Built in 1954, the property is positioned on Kennedy Avenue in Hammond and includes off-street parking. Public water and public sewer serve the property, while central heating is provided for the commercial space. The site also has room for expansion and a drive-through, as described in the property information.
Key Highlights
- 2,270‑square‑foot mixed‑use property on a 0.144‑acre lot
- Front restaurant area includes Super Sub and Key Pizza
- Commercial kitchen with staff area, POS system, and office
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
$22,473
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
7.78%
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%
$449,460
$449.5K
Cap Rate 7%
$321,043
$321.0K
Cap Rate 9%
$249,700
$249.7K
Market Conditions
NOI Build-Up for 2,270 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
$40.9K $18.00/SF
− Vacancy
−$4.9K −$2.16/SF
EGI
$36.0K $15.84/SF
− OpEx
−$13.5K −$5.94/SF
NOI
$22.5K $9.90/SF
Area
Lake County, IN
Vacancy
12.00%
Lease Rate
$18.00 /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%
$449,460
Cap Rate 7%
$321,043
Cap Rate 9%
$249,700
Alternative Uses
Best Use
Specialty Retail
$633.7K
$554.5K – $739.3K
NOI $44,359 @ 7.0% cap · market cap 15.35%
Second Best
Mixed Use
$321.0K
$280.9K – $374.6K
NOI $22,473 @ 7.0% cap · market cap 7.78%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Residential units
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
428
Businesses Nearby
106k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 34%
Shops & Services 33%
Groceries 31%
Electronics 2%
Strack & Van Til
Groceries
33,307 visits/mo
0.3 miles
Burger King
Dining
19,460 visits/mo
0.1 miles
Chase Bank
Shops & Services
14,962 visits/mo
0.1 miles
Citgo
Shops & Services
8,681 visits/mo
0.4 miles
KFC
Dining
8,272 visits/mo
0.1 miles
Demographics for 46323, IN
22,510
Population
8,955
Households
2.5
Avg Household Size
35
Median Age
15%
College-Educated
85%
High-School Grad
6.2 sq mi
ZIP Area
3,631
Density / Sq Mi
$56,906
Median Household Income
$35,292
Median Earnings
$1,189
Median Rent
$149,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Restaurant operations, a residential unit, commercial kitchen, and off-street parking occupy this flexible mixed-use property.
Where is this mixed-use property located?
The property is located at 7003 Kennedy Avenue Hammond, IN.
What is the asking price?
The asking price for this property is $289,000.
What are key features of this property?
This property features: 2,270‑square‑foot mixed‑use property on a 0.144‑acre lot; Front restaurant area includes Super Sub and Key Pizza; Commercial kitchen with staff area, POS system, and office
