Hotel with On-Site
For Sale
$7,250,000
7304 E 21st St, Indianapolis, IN 46219
Established hospitality property with guest services, meeting space, fitness amenities, and on-site laundry.
Property Size82,166 SF
Days on Market64
Property Features for 7304 E 21st St
General Information
Standard status
Active
Size
82,166 SF
Property subtype
Commercial
Amenities
On-Site Laundry
On-Site Restaurant
Meeting Space
Fitness Center
Smoke Free Property
Valet Dry Cleaning
Daily Housekeeping
Same Day Dry Cleaning
Wake-Up Calls
Building Details
Building Size
82,166 SF
Year Built
1981
Units
118
Listing Agency:
Matthews Real Estate Investment Services - Corporate
(317) 493-0055
Listed By:
Luke Whittaker · License #02185614 (CA)
(317) 493-0055
Source:
Matthews
Added: Jun 28
Changed: Aug 29
Last Checked: Aug 29 at 1:39PM
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 Matthews Real Estate Investment Services - Corporate
Investment Insights
Based on property information with market context.
This hotel property, built in 1981, includes an on-site restaurant, meeting space, fitness center, and laundry facilities. Guest services include daily housekeeping, wake-up calls, valet dry cleaning, and same-day dry cleaning. The property is smoke-free and located at 7304 E 21st St in Indianapolis, Indiana.
Key Highlights
- On‑site restaurant and meeting space
- Fitness center and laundry facilities
- Daily housekeeping and wake‑up calls
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
$386,386
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
5.33%
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%
$7,727,720
$7.7M
Cap Rate 7%
$5,519,800
$5.5M
Cap Rate 9%
$4,293,178
$4.3M
Market Conditions
NOI Build-Up for 82,166 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
$1.08M $13.20/SF
− Vacancy
−$271.1K −$3.30/SF
EGI
$813.4K $9.90/SF
− OpEx
−$427.1K −$5.20/SF
NOI
$386.4K $4.70/SF
Area
Indianapolis, IN
Vacancy
25.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
52.50%
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%
$7,727,720
Cap Rate 7%
$5,519,800
Cap Rate 9%
$4,293,178
Alternative Uses
Best Use
Specialty Retail
$14.66M
$12.83M – $17.10M
NOI $1,026,048 @ 7.0% cap · market cap 14.15%
Second Best
Hotel Hospitality
$5.52M
$4.83M – $6.44M
NOI $386,386 @ 7.0% cap · market cap 5.33%
Theoretical Best
Office A
$20.45M
$17.90M – $23.86M
NOI $1,431,660 @ 7.0% cap · market cap 19.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
Explore this area
Business Placement
Demographics for 46219, IN
36,556
Population
17,028
Households
2.1
Avg Household Size
38
Median Age
26%
College-Educated
86%
High-School Grad
13.0 sq mi
ZIP Area
2,812
Density / Sq Mi
$57,811
Median Household Income
$38,995
Median Earnings
$991
Median Rent
$177,000
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Established hospitality property with guest services, meeting space, fitness amenities, and on-site laundry.
Where is this hotel located?
The property is located at 7304 E 21st St Indianapolis, IN.
What is the asking price?
The asking price for this property is $7,250,000.
What are key features of this property?
This property features: On‑site restaurant and meeting space; Fitness center and laundry facilities; Daily housekeeping and wake‑up calls
