Delafield Flex Redevelopment
For Sale
Contact for pricing
805 Wells St, Delafield, WI 53018
Flex building and vacant parcel in Downtown Delafield.
Property Size6,500 SF
Lot Size0.82 Acres
Price / SF$276.92
Days on Market821
Property Features for 805 Wells St
General Information
Standard status
Active
Size
6,500 SF
Lot size
0.82 Acres
Property subtype
Mixed Use, Retail
Listing Agency:
CBRE - Milwaukee
Listed By:
Devin Tessmer · License #WI
Source:
Crexi
Added: Jun 5, 2024
Changed: Aug 21
Last Checked: Sep 2 at 11:25PM
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 CBRE - Milwaukee
Investment Insights
Based on property information with market context.
This property presents a flex or redevelopment opportunity in historic Downtown Delafield. It includes a 6,500-square-foot flex building on a 0.43-acre parcel, along with an adjacent 0.39-acre vacant parcel. Situated in the heart of Lake Country, the location provides access to I-94 and benefits from strong surrounding household incomes. Downtown Delafield features a mix of community events, office tenants, retailers, restaurants, and nightlife. The property is near new multi-family and single-family residential developments, as well as the upcoming Grain Development, a $25 million project by Hendricks, which will offer over 78,000 square feet of office and retail space.
Key Highlights
- Rare flex or redevelopment opportunity in historic Downtown Delafield.
- Includes a 6,500 SF flex building on 0.43 acres and an adjacent 0.39 acre vacant parcel.
- Located in the heart of "Lake Country" with great access to I‑94.
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
$77,220
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
4.29%
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%
$1,544,400
$1.5M
Cap Rate 7%
$1,103,143
$1.1M
Cap Rate 9%
$858,000
$858.0K
Market Conditions
NOI Build-Up for 6,500 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
$140.4K $21.60/SF
− Vacancy
−$16.8K −$2.59/SF
EGI
$123.6K $19.01/SF
− OpEx
−$46.3K −$7.13/SF
NOI
$77.2K $11.88/SF
Area
Waukesha County, WI
Vacancy
12.00%
Lease Rate
$21.60 /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%
$1,544,400
Cap Rate 7%
$1,103,143
Cap Rate 9%
$858,000
Alternative Uses
Best Use
Flex RnD
$3.32M
$2.90M – $3.87M
NOI $232,219 @ 7.0% cap · market cap 12.90%
Second Best
Mixed Use
$1.10M
$965.3K – $1.29M
NOI $77,220 @ 7.0% cap · market cap 4.29%
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
477
Businesses Nearby
Explore this area
Business Placement
Demographics for 53018, WI
7,396
Population
3,431
Households
2.2
Avg Household Size
49
Median Age
54%
College-Educated
99%
High-School Grad
11.2 sq mi
ZIP Area
660
Density / Sq Mi
$130,511
Median Household Income
$62,037
Median Earnings
$1,492
Median Rent
$485,200
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Flex building and vacant parcel in Downtown Delafield.
Where is this mixed-use property located?
The property is located at 805 Wells St Delafield, WI.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Rare flex or redevelopment opportunity in historic Downtown Delafield.; Includes a 6,500 SF flex building on 0.43 acres and an adjacent 0.39 acre vacant parcel.; Located in the heart of "Lake Country" with great access to I‑94.
