Turn Key Retail Space
For Sale
Contact for pricing
909 Franklin St, Michigan City, IN
Retail space with equipment and upper level residence for sale.
Property Size2,350 SF
Lot Size0.09 Acres
Price / SF$425.53
Days on Market1045
Property Features for 909 Franklin St
General Information
Standard status
Active
Size
2,350 SF
Lot size
0.09 Acres
Property subtype
RETAIL
Listing Agency:
Coldwell Banker
(219) 464-3531
Listed By:
Ken Peach · License #475137164
(708) 764-2890
Source:
Moodyscre
Added: Nov 10, 2023
Changed: Sep 4
Last Checked: Sep 19 at 1:40PM
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
Investment Insights
Based on property information with market context.
This is a turn-key retail space with all equipment included, suitable for a baking business. The property also features an upper-level residence that can be owner-occupied or rented out. A new train station is located less than two blocks away. The space is suitable for a coffee shop and pastries business. The property can be utilized for any type of retail or professional office space. It includes an attached 4-car garage built in 2002. The property size is 2350 square feet.
Key Highlights
- Turn‑key commercial space with all equipment included.
- Upper‑level residence offers living space or rental income potential.
- Proximity to new train station (less than 2 blocks).
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
$45,732
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
4.57%
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%
$914,640
$914.6K
Cap Rate 7%
$653,314
$653.3K
Cap Rate 9%
$508,133
$508.1K
Market Conditions
NOI Build-Up for 2,350 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
$63.5K $27.00/SF
− Vacancy
−$2.5K −$1.05/SF
EGI
$61.0K $25.95/SF
− OpEx
−$15.2K −$6.49/SF
NOI
$45.7K $19.46/SF
Area
LaPorte County, IN
Vacancy
3.90%
Lease Rate
$27.00 /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%
$914,640
Cap Rate 7%
$653,314
Cap Rate 9%
$508,133
Alternative Uses
Best Use
Specialty Retail
$653.3K
$571.7K – $762.2K
NOI $45,732 @ 7.0% cap · market cap 4.57%
Second Best
Retail
$316.2K
$276.7K – $368.9K
NOI $22,132 @ 7.0% cap · market cap 2.21%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,104
Businesses Nearby
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Retail space - Retail space with equipment and upper level residence for sale.
Where is this retail space located?
The property is located at 909 Franklin St Michigan City, IN.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Turn‑key commercial space with all equipment included.; Upper‑level residence offers living space or rental income potential.; Proximity to new train station (less than 2 blocks).
