Building Details

Year Built 1856

Stories 2

Tenancy Multi

Listing Agency: Pailin Realty Show Phone

Listed By: Chris Bernier Show Phone

Source: Churchillprop

Added: Sep 6 Changed: Sep 10 Last Checked: Sep 10 at 5:25AM

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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 Pailin Realty

Investment Insights

Based on property information with market context.

This 5,328-square-foot, six-unit building dates to 1856 and includes updated appliances, in-unit laundry, and two off-street parking spaces for each unit. The property also includes an accessory barn and has received numerous updates. Utility responsibilities are divided between occupants and ownership, with tenants covering electricity, hot water, and internet while the landlord handles heat, trash, water, and yard and driveway maintenance.

Situated in downtown Underhill, the building is fully leased under annual agreements. The tenant mix includes a long-term commercial occupant alongside residential tenants, creating a combination of commercial and residential use within the property.

Key Highlights

• 5,328 SF six‑unit building constructed in 1856
• Fully rented under annual leases
• Commercial and residential tenant mix

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

$52,114

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

5.24%

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%

$1,042,280 $1.0M

Cap Rate 7%

$744,486 $744.5K

Cap Rate 9%

$579,044 $579.0K

Market Conditions

NOI Build-Up for 5,328 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

$95.9K $18.00/SF

− Vacancy

−$1.2K −$0.22/SF

EGI

$94.8K $17.78/SF

− OpEx

−$42.6K −$8.00/SF

NOI

$52.1K $9.78/SF

Area

Chittenden County, VT

Vacancy

1.20%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

45.00%

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%

$1,042,280

Cap Rate 7%

$744,486

Cap Rate 9%

$579,044

Alternative Uses

Best Use

Apartment 5plus

$744.5K

$651.4K – $868.6K (±1% cap)

NOI $52,114 @ 7.0% cap · market cap 5.24%

Second Best

Mixed Use

$733.2K

$641.6K – $855.4K (±1% cap)

NOI $51,325 @ 7.0% cap · market cap 5.16%

Theoretical Best

Office A

$1.46M

$1.28M – $1.70M (±1% cap)

NOI $102,298 @ 7.0% cap · market cap 10.28%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Apartment buildings

Suggested Use

Top Pick Auto Repair Shop Plumbing Service Hair Salon Pharmacy Bakery Law Firm

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

100%

Occupancy

Multi-tenant

Tenancy

Location Intelligence

Trade Area within ½ mile

64

Businesses Nearby

Explore this area Business Placement

Demographics for 05454, VT

5,167

Population

2,085

Households

2.5

Avg Household Size

39

Median Age

49%

College-Educated

98%

High-School Grad

48.1 sq mi

ZIP Area

107

Density / Sq Mi

$118,438

Median Household Income

$56,130

Median Earnings

$1,054

Median Rent

$361,000

Median Home Value

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this apartment buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Apartment building - The property has mixed-use zoning, annual leases, and both commercial and residential tenants.

Where is this apartment building located?

The property is located at 1 Park Street Underhill, VT.

What is the asking price?

The asking price for this property is $995,000.

What are key features of this property?

This property features: 5,328 SF six‑unit building constructed in 1856; Fully rented under annual leases; Commercial and residential tenant mix