Leased Restaurant and Mixed-Use
For Sale
$2,750,000
705 County Road 6 E, Elkhart, IN 46514
Fully leased restaurant building on a PUD-zoned site with substantial frontage on a heavily traveled corridor.
Property Size16,150 SF
Lot Size3.42 Acres
Price / SF$170.28
Days on Market84
Property Features for 705 County Road 6 E
General Information
Standard status
Active
Size
16,150 SF
Lot size
3.42 Acres
Zoning
PUD
Site & Location
Traffic Count
20,000 vehicles/day
Highway Access
Yes
Additional Details
Liquor License
Yes
Taxes and HOA fees
Annual Taxes
$27,518
Listing Agency:
Coldwell Banker Real Estate Group
(574) 360-6881
Listed By:
John Piraccini · License #RB14045659
(574) 360-6881
Source:
Exprealty
Added: Jun 2
Changed: Aug 23
Last Checked: Aug 24 at 9:31AM
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 Real Estate Group
Investment Insights
Based on property information with market context.
This property presents a restaurant-focused opportunity with room for broader development under PUD zoning. It includes a fully leased 16,150 SF building and a 3.42-acre site with nearly 400 feet of frontage. The units are equipped with individually metered gas forced-air heating, central A/C, and 200-amp electrical service. The building also includes handicap-accessible restrooms, water heaters, furnace rooms, and storage areas. A 3-way liquor license is included as used by Margarita’s Mexican Restaurant.
The site is located on heavily traveled County Road 6E with traffic counts over 18,000 cars daily, just off the corner with State Road 19 with traffic counts over 20,000 cars daily. It sits within a strong retail corridor, with access to major routes and local destinations, including the IN-19 interchange and Simonton Lake.
For tenants and operators, the property’s existing restaurant buildout and utilities support continued food service operations. For buyers, the PUD: Planned Unit Development zoning provides flexibility for a range of mixed-use development concepts while retaining income-producing occupancy in the current building.
The site is located on heavily traveled County Road 6E with traffic counts over 18,000 cars daily, just off the corner with State Road 19 with traffic counts over 20,000 cars daily. It sits within a strong retail corridor, with access to major routes and local destinations, including the IN-19 interchange and Simonton Lake.
For tenants and operators, the property’s existing restaurant buildout and utilities support continued food service operations. For buyers, the PUD: Planned Unit Development zoning provides flexibility for a range of mixed-use development concepts while retaining income-producing occupancy in the current building.
Key Highlights
- Fully leased 16,150 SF restaurant building on a PUD: Planned Unit Development–zoned site
- 3.42 acres with nearly 400 ft of frontage on heavily traveled CR 6 E (over 18,000 cars daily) just off SR 19 (over 20,000 cars daily)
- Year built: 1988
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
$209,304
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
7.61%
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%
$4,186,080
$4.2M
Cap Rate 7%
$2,990,057
$3.0M
Cap Rate 9%
$2,325,600
$2.3M
Market Conditions
NOI Build-Up for 16,150 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
$290.7K $18.00/SF
− Vacancy
−$11.6K −$0.72/SF
EGI
$279.1K $17.28/SF
− OpEx
−$69.8K −$4.32/SF
NOI
$209.3K $12.96/SF
Area
Elkhart County, IN
Vacancy
4.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$4,186,080
Cap Rate 7%
$2,990,057
Cap Rate 9%
$2,325,600
Alternative Uses
Best Use
Specialty Retail
$2.99M
$2.62M – $3.49M
NOI $209,304 @ 7.0% cap · market cap 7.61%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Yes
Highway access
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
209
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 46514, IN
42,048
Population
17,987
Households
2.3
Avg Household Size
39
Median Age
21%
College-Educated
86%
High-School Grad
38.7 sq mi
ZIP Area
1,087
Density / Sq Mi
$61,784
Median Household Income
$40,909
Median Earnings
$1,084
Median Rent
$170,900
Median Home Value
Market
Vacancy Rate% for Retail 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 - Fully leased restaurant building on a PUD-zoned site with substantial frontage on a heavily traveled corridor.
Where is this conventional restaurant located?
The property is located at 705 County Road 6 E Elkhart, IN.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Fully leased 16,150 SF restaurant building on a PUD: Planned Unit Development–zoned site; 3.42 acres with nearly 400 ft of frontage on heavily traveled CR 6 E (over 18,000 cars daily) just off SR 19 (over 20,000 cars daily); Year built: 1988
