1639 DOUGLAS AVE Racine WI 53404-2700

Douglas Flats | 1639 Douglas Ave, Racine, WI 53404

A stabilized, mixed-use income property in the heart of Racine’s revitalization corridor.

Stabilized 34-Unit Mixed-Use Property | 10.76% CoC | New Roof | Turnkey Management

Property Description:

Welcome to Douglas Flats—a cash-flowing 34-unit mixed-use investment with stable income, a new roof, and proven operational performance. With 32 residential units and 2 commercial spaces (including a fully functional property management office), this asset has historically strong occupancy and still offers upside through modest rent increases and operating efficiencies.

Strategically located on Douglas Avenue just minutes from Downtown Racine and Lake Michigan, Douglas Flats offers investors both immediate returns and long-term growth potential in a supply-constrained submarket.

Highlights:

• 34 total units: 32 residential + 2 commercial

• New roof installed in 2023 — major CapEx already handled

• Current gross monthly rent: $17,700, with additional upside

• Forecasted IRR: 18.2% | Cap Rate: 8.82% | CoC: 10.76%

• 1.45x Debt Coverage Ratio

• One commercial suite currently used as on-site property management office

• Professionally managed—team willing to remain post-close

• Zoned B2 (Mixed-Use Business District) – ideal for residential + commercial blend

Operational Strengths:

• Consistent gross income across 2023–2025 YTD

• Well-documented financials from Smart Asset Management

• Professional bookkeeping and tenant ledger available

• Essential utilities and services already structured in place

• Room for value through minor rent increases and utility rebilling

Location Notes:

• 5 min to Downtown Racine

• 2 min to Highway 32 / 11

• 1 block from transit and essential retail

• 1 mile to Lake Michigan waterfront redevelopment zone

Financial Snapshot:

• Price: $1,295,000

• NOI: $114,618

• Total Capital Needed: $331,000

• Annual Debt Service: $78,999

• Cash Flow After Taxes (Year 1): $32,144

• 10-Year IRR: 18.2%

• Projected Resale Value (Year 10): $1.75M+