Downtown Mixed-Use
For Sale
$639,000
731 Washington St, Michigan City, IN 46360
Brick corner property combines residential space with a restaurant and commercial kitchen.
Property Size4,495 SF
Price / SF$142.16
Days on Market218
Property Features for 731 Washington St
General Information
Standard status
Active
Size
4,495 SF
Property subtype
Commercial
Additional Details
Patio
Yes
Building Details
Year Built
1870
Buildings
1
Construction
brick
Listing Agency:
Coldwell Banker Realty
(847) 404-8900
Listed By:
Daren Huber · License #RB15000509
Source:
Nwindianahomesearcher
Added: Jan 24
Changed: Aug 29
Last Checked: Aug 25 at 7:29AM
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 brick mixed-use building combines a residential unit with a restaurant area in a single property. The residence includes modern furnishings, stainless appliances, and abundant natural light. The restaurant component features a commercial kitchen, indoor and outdoor dining areas, and a separate office. A large exterior deck provides additional space connected to the dining operation.
Positioned on a corner in downtown Michigan City at 731 Washington St, the property benefits from exposure to both pedestrian and vehicle traffic. The restaurant occupies a corner setting with frequent foot traffic, while the residential and commercial components create a distinctly combined layout.
Positioned on a corner in downtown Michigan City at 731 Washington St, the property benefits from exposure to both pedestrian and vehicle traffic. The restaurant occupies a corner setting with frequent foot traffic, while the residential and commercial components create a distinctly combined layout.
Key Highlights
- Brick mixed‑use building with residential and restaurant components
- Residential unit with modern furnishings, stainless appliances, and abundant natural light
- Commercial kitchen with indoor and outdoor dining areas
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
$30,442
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
4.76%
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%
$608,840
$608.8K
Cap Rate 7%
$434,886
$434.9K
Cap Rate 9%
$338,244
$338.2K
Market Conditions
NOI Build-Up for 4,495 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
$53.9K $12.00/SF
− Vacancy
−$5.2K −$1.16/SF
EGI
$48.7K $10.84/SF
− OpEx
−$18.3K −$4.06/SF
NOI
$30.4K $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%
$608,840
Cap Rate 7%
$434,886
Cap Rate 9%
$338,244
Alternative Uses
Best Use
Specialty Retail
$1.25M
$1.09M – $1.46M
NOI $87,474 @ 7.0% cap · market cap 13.69%
Second Best
Mixed Use
$434.9K
$380.5K – $507.4K
NOI $30,442 @ 7.0% cap · market cap 4.76%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,091
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 Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Brick corner property combines residential space with a restaurant and commercial kitchen.
Where is this mixed-use property located?
The property is located at 731 Washington St Michigan City, IN.
What is the asking price?
The asking price for this property is $639,000.
What are key features of this property?
This property features: Brick mixed‑use building with residential and restaurant components; Residential unit with modern furnishings, stainless appliances, and abundant natural light; Commercial kitchen with indoor and outdoor dining areas
