Retail Building with Five-Unit
For Sale
$3,500,000
505 N Krome Ave, Homestead, FL 33030
Commercial Sale, Homestead, FL
Property Size7,640 SF
Lot Size0.31 Acres
Price / SF$458.12
Days on Market94
Property Features for 505 N Krome Ave
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
6300
Parking features
On Street
Security features
Security
Exterior features
Storm/Security Shutters
Subdivision
79
Standard status
Active
APN
10-79-18-006-0300
Lot size
0.31 Acres
Taxes and HOA fees
Tax Description
COMMERCE ADDITION PB 2-97 LOTS 6 & 7 BLK 3 LOT SIZE 100.000 X 135 OR 12129-1266 0484 4 COC 23137-1691/1693/1696 0205 1 COC 23137-1699 0205 1
Legal Description
COMMERCE ADDITION PB 2-97 LOTS 6 & 7 BLK 3 LOT SIZE 100.000 X 135 OR 12129-1266 0484 4 COC 23137-1691/1693/1696 0205 1 COC 23137-1699 0205 1
Utilities
Sewer type
Public Sewer
Cooling system
Central Air
Water source
Public
Building Details
Year built
1955
Floors in Building
1
Flooring type
Concrete, Hardwood, Wood, Laminate
Building materials
CBSConcreteBlockStructure, Block
Roof type
Tar/Gravel
Listing Agency:
Royal Palm Real Estate Services LLC
(305) 793-8325
Listed By:
June Makis · License #3161894
(305) 216-1211
Added: Jun 30
Changed: Oct 1
Last Checked: Oct 1 at 4:06PM
MLS# A11984815
Copyright © 2026 Miami REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 7,640-square-foot retail building occupies a 13,500-square-foot lot and is currently arranged for two businesses. The interior can be remodeled for as many as five separate units, each with its own address and bathroom. The property recently completed its 40-year recertification. Construction is concrete block, with central air and storm/security shutters.
Positioned on N Krome Ave in Homestead, the building provides access from both the front and rear. Paved parking is available behind the building, with additional street parking in front. The property is zoned B-1.
Positioned on N Krome Ave in Homestead, the building provides access from both the front and rear. Paved parking is available behind the building, with additional street parking in front. The property is zoned B-1.
Key Highlights
- 7,640‑square‑foot retail building on a 13,500‑square‑foot lot
- Currently divided for two businesses; reconfiguration can accommodate up to 5 units
- Each of the potential units can have a separate address and bathroom
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
$129,186
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
3.69%
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%
$2,583,720
$2.6M
Cap Rate 7%
$1,845,514
$1.8M
Cap Rate 9%
$1,435,400
$1.4M
Market Conditions
NOI Build-Up for 7,640 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
$201.7K $26.40/SF
− Vacancy
−$17.1K −$2.24/SF
EGI
$184.6K $24.16/SF
− OpEx
−$55.4K −$7.25/SF
NOI
$129.2K $16.91/SF
Area
Miami-Dade County, FL
Vacancy
8.50%
Lease Rate
$26.40 /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%
$2,583,720
Cap Rate 7%
$1,845,514
Cap Rate 9%
$1,435,400
Alternative Uses
Best Use
Retail
$1.85M
$1.61M – $2.15M
NOI $129,186 @ 7.0% cap · market cap 3.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.88M
$3.39M – $4.52M
NOI $271,327 @ 7.0% cap · market cap 7.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,218
Businesses Nearby
Explore this area
Business Placement
Demographics for 33030, FL
36,776
Population
11,217
Households
3.3
Avg Household Size
33
Median Age
15%
College-Educated
61%
High-School Grad
17.6 sq mi
ZIP Area
2,090
Density / Sq Mi
$43,231
Median Household Income
$28,214
Median Earnings
$1,307
Median Rent
$382,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - B-1-zoned space has separate front and rear access, with a layout that can be reworked for multiple businesses.
Where is this retail space located?
The property is located at 505 N Krome Ave Homestead, FL.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 7,640‑square‑foot retail building on a 13,500‑square‑foot lot; Currently divided for two businesses; reconfiguration can accommodate up to 5 units; Each of the potential units can have a separate address and bathroom
