Building Details

Year Built 1989

Tenancy Multi

Listing Agency: Cressy & Everett- Elkhart Show Phone

Listed By: Patton Hall Show Phone

Source: Pattonhall

Added: Jul 20 Changed: Aug 28 Last Checked: Aug 29 at 9:09AM

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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 Cressy & Everett- Elkhart

Investment Insights

Based on property information with market context.

Located at 8098 N State Road 23 Road in Walkerton, Indiana, this 3,478-square-foot mixed-use property was built in 1989. The asset includes a leased commercial storefront with a new furnace and A/C, along with two remodeled one-bedroom, one-bath residences. One residence has an attached garage, while the other includes off-street parking.

A 12' x 20' storage shed provides an additional rented component. The property also includes a large yard and is situated minutes from Koontz Lake, combining commercial, residential, and storage uses within one income-producing asset.

Key Highlights

• 3,478 SF mixed‑use property built in 1989
• Leased commercial storefront with new furnace and A/C
• Two remodeled 1 bed/1 bath homes

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

$26,654

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

8.08%

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%

$533,080 $533.1K

Cap Rate 7%

$380,771 $380.8K

Cap Rate 9%

$296,156 $296.2K

Market Conditions

NOI Build-Up for 3,478 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

$54.7K $15.72/SF

− Vacancy

−$12.0K −$3.46/SF

EGI

$42.6K $12.26/SF

− OpEx

−$16.0K −$4.60/SF

NOI

$26.7K $7.66/SF

Area

St. Joseph County, IN

Vacancy

22.00%

Lease Rate

$15.72 /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%

$533,080

Cap Rate 7%

$380,771

Cap Rate 9%

$296,156

Alternative Uses

Best Use

Retail

$689.7K

$603.5K – $804.6K (±1% cap)

NOI $48,278 @ 7.0% cap · market cap 14.63%

Second Best

Multifamily LT 5

$437.7K

$383.0K – $510.6K (±1% cap)

NOI $30,637 @ 7.0% cap · market cap 9.28%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Dental Office Auto Repair Shop Storage Facility Big Box & Wholesale Store Grocery & Convenience Store Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

38

Businesses Nearby

Explore this area Business Placement

Demographics for 46574, IN

8,377

Population

3,952

Households

2.1

Avg Household Size

42

Median Age

18%

College-Educated

92%

High-School Grad

97.5 sq mi

ZIP Area

86

Density / Sq Mi

$73,950

Median Household Income

$40,731

Median Earnings

$839

Median Rent

$167,000

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Leased retail space combines with two remodeled one-bedroom residences and an additional rented storage building.

Where is this mixed-use property located?

The property is located at 8098 N State Road 23 Road Walkerton, IN.

What is the asking price?

The asking price for this property is $330,000.

What are key features of this property?

This property features: 3,478 SF mixed‑use property built in 1989; Leased commercial storefront with new furnace and A/C; Two remodeled 1 bed/1 bath homes