Building Details

Year Built 1992

Buildings 2

Listing Agency: Avenue Real Estate LLC b***@avenueret.com Show Phone

Listed By: Bill Cain · License #2595890

Source: Nikolicgroup

Added: Jul 20 Changed: Aug 30 Last Checked: Aug 25 at 5:14AM

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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 Avenue Real Estate LLC

Investment Insights

Based on property information with market context.

This manufacturing property comprises 20 acres with 8,700 square feet of existing improvements constructed in 1992. The buildings include a 5,100-square-foot utility building and a 3,600-square-foot pump house and warehouse, each supported by concrete footings. Underground utilities, internal roadway access, and parking for 50+ vehicles serve the improvements.

The property at W5280 County Road A S in Sherman, WI, also includes a newer blacktop road, extensive landscaping, an extremely high-capacity well, and high-voltage electrical service. The former Ecochem Lactic Acid Facility does not currently have a septic system; a site plan has been completed.

Key Highlights

• 20‑acre manufacturing property with 8,700 square feet of improvements
• 5,100‑square‑foot utility building plus 3,600‑square‑foot pump house/warehouse
• High‑voltage electrical service and an extremely high‑capacity well

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

$55,778

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

3.60%

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%

$1,115,560 $1.1M

Cap Rate 7%

$796,829 $796.8K

Cap Rate 9%

$619,756 $619.8K

Market Conditions

NOI Build-Up for 8,700 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

$67.9K $7.80/SF

− Vacancy

−$2.2K −$0.26/SF

EGI

$65.6K $7.54/SF

− OpEx

−$9.8K −$1.13/SF

NOI

$55.8K $6.41/SF

Area

Madison, WI

Vacancy

3.30%

Lease Rate

$7.80 /SF/Yr

Expense Ratio

15.00%

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%

$1,115,560

Cap Rate 7%

$796,829

Cap Rate 9%

$619,756

Alternative Uses

Best Use

Warehouse

$796.8K

$697.2K – $929.6K (±1% cap)

NOI $55,778 @ 7.0% cap · market cap 3.60%

Second Best

Industrial

$656.2K

$574.2K – $765.6K (±1% cap)

NOI $45,934 @ 7.0% cap · market cap 2.96%

Theoretical Best

Office A

$2.54M

$2.22M – $2.96M (±1% cap)

NOI $177,898 @ 7.0% cap · market cap 11.48%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Manufacturing properties

Location Intelligence

Trade Area within ½ mile

Explore this area Business Placement

Demographics for 53001, WI

1,857

Population

832

Households

2.2

Avg Household Size

45

Median Age

22%

College-Educated

94%

High-School Grad

28.5 sq mi

ZIP Area

65

Density / Sq Mi

$89,652

Median Household Income

$55,846

Median Earnings

$804

Median Rent

$234,000

Median Home Value

Market

Vacancy Rate% for Industrial in Midwest region

4.4% 2019

4.9% 2020

3.6% 2021

3.1% 2022

4.6% 2023

5% 2024

4.9% 2025

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Frequently Asked Questions

What type of property is this?

Manufacturing property - Industrial improvements include utility, warehouse, and pump-house space with high-voltage electrical service.

Where is this manufacturing property located?

The property is located at W5280 County Road A South - Sherman, WI.

What is the asking price?

The asking price for this property is $1,550,000.

What are key features of this property?

This property features: 20‑acre manufacturing property with 8,700 square feet of improvements; 5,100‑square‑foot utility building plus 3,600‑square‑foot pump house/warehouse; High‑voltage electrical service and an extremely high‑capacity well