Mixed-Use Building with Bakery
For Sale
$1,700,000
909 Franklin St, Michigan City, IN 46360
Commercial space includes baking equipment, walk-in coolers, a loading dock, and a three-car garage.
Property Size8,265 SF
Price / SF$205.69
Days on Market17
Property Features for 909 Franklin St
General Information
Standard status
Active
Size
8,265 SF
Total Parking Spaces
3
Additional Details
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$5,436
Amenities
loading dock
three-car garage
basement storage
Building Details
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HomeService
(269) 470-7832
Listed By:
Betty Biernacki · License #6506044291
(269) 470-7832
Source:
Exprealty
Added: Aug 1
Changed: Aug 14
Last Checked: Aug 16 at 11:57AM
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 Berkshire Hathaway HomeService
Investment Insights
Based on property information with market context.
This mixed-use property combines an equipped commercial operation with an upper-level residence. The first floor includes a Middleby Marshall baking oven, bakery fixtures, display cases, two walk-in coolers, a loading dock, and a three-car garage. Large display windows flank the entrance, while the basement provides extensive shelving for storage. The property size is 8,265 square feet.
The second-floor apartment measures 2,350 square feet and features oak hardwood floors, a living room with a gas-log fireplace, two bedrooms, a library, and a primary suite with an oversized bath and walk-in closet. Its kitchen includes granite countertops and stainless steel appliances. The library may also function as a third bedroom or home office.
Located at 909 Franklin St in Historic Downtown Michigan City, the property is a few blocks from the new South Shore Line Station and near the condominium development at Franklin Street and 11th Street.
The second-floor apartment measures 2,350 square feet and features oak hardwood floors, a living room with a gas-log fireplace, two bedrooms, a library, and a primary suite with an oversized bath and walk-in closet. Its kitchen includes granite countertops and stainless steel appliances. The library may also function as a third bedroom or home office.
Located at 909 Franklin St in Historic Downtown Michigan City, the property is a few blocks from the new South Shore Line Station and near the condominium development at Franklin Street and 11th Street.
Key Highlights
- 8,265‑square‑foot mixed‑use property at 909 Franklin St, Michigan City, IN
- First‑floor commercial space includes a Middleby Marshall baking oven and bakery fixtures
- Two walk‑in coolers, loading dock, basement shelving, and three‑car garage included
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
$77,838
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
4.58%
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%
$1,556,760
$1.6M
Cap Rate 7%
$1,111,971
$1.1M
Cap Rate 9%
$864,867
$864.9K
Market Conditions
NOI Build-Up for 8,265 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
$115.7K $14.00/SF
− Vacancy
−$4.5K −$0.55/SF
EGI
$111.2K $13.45/SF
− OpEx
−$33.4K −$4.04/SF
NOI
$77.8K $9.42/SF
Area
LaPorte County, IN
Vacancy
3.90%
Lease Rate
$14.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,556,760
Cap Rate 7%
$1,111,971
Cap Rate 9%
$864,867
Alternative Uses
Best Use
Specialty Retail
$2.30M
$2.01M – $2.68M
NOI $160,839 @ 7.0% cap · market cap 9.46%
Second Best
Retail
$1.11M
$973.0K – $1.30M
NOI $77,838 @ 7.0% cap · market cap 4.58%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
982
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 - Commercial space includes baking equipment, walk-in coolers, a loading dock, and a three-car garage.
Where is this mixed-use property located?
The property is located at 909 Franklin St Michigan City, IN.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: 8,265‑square‑foot mixed‑use property at 909 Franklin St, Michigan City, IN; First‑floor commercial space includes a Middleby Marshall baking oven and bakery fixtures; Two walk‑in coolers, loading dock, basement shelving, and three‑car garage included
