Student Housing Investment
For Sale
$2,995,000
118 NEW LONDON ROAD, Newark, DE 19711
Five-unit student housing near University of Delaware campus.
Property Size9,018 SF
Price / SF$332.11
Days on Market122
Property Features for 118 NEW LONDON ROAD
General Information
Standard status
Active
Size
9,018 SF
Property subtype
Multi-Family
Taxes and HOA fees
Annual Taxes
$15,758
Amenities
Central Air
3
Vinyl, Carpet
Metal, Composition Shingle
Parking.
Lot.
Urban.
Building Details
Year Built
2021
Listing Agency:
RE/MAX Edge
(302) 442-4200
Listed By:
Kyle Mayhew · License #R3-0013118
(302) 750-4555
Source:
Xome
Added: May 6
Changed: Sep 4
Last Checked: Sep 4 at 3:51AM
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 RE/MAX Edge
Investment Insights
Based on property information with market context.
The property at 118 New London Road presents a 5-unit student housing investment opportunity. Originally three separate detached 4-bedroom homes, the property was rezoned and reimagined in 2021. The original three homes were renovated, and two additional 5-bedroom homes were built in between, creating one property consisting of five row homes with high-density garden apartment zoning. The location is strategically positioned between the University of Delaware's main campus and the north campus. This location and the construction quality have resulted in 100% occupancy since its inception, with favorable annual rent increases. The units were designed for college students, with trends towards individual bedrooms and multiple baths. The property is surrounded by other comparable student housing complexes, adding to the demand for this area and unit type. The University has demonstrated strong student body demographics and continues to add capital projects and campus growth with the addition of the STAR campus and other buildings throughout its campus. The bike score is 79, indicating it is very bikeable, and the walk score is 59, indicating it is somewhat walkable.
Key Highlights
- 100% occupancy since 2021 with favorable annual rent increases.
- Strategically located between UD's main campus and north campus.
- Five‑unit student housing investment opportunity with high density garden apartment zoning.
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
$85,418
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
2.85%
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%
$1,708,360
$1.7M
Cap Rate 7%
$1,220,257
$1.2M
Cap Rate 9%
$949,089
$949.1K
Market Conditions
NOI Build-Up for 9,018 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
$165.6K $18.36/SF
− Vacancy
−$10.3K −$1.14/SF
EGI
$155.3K $17.22/SF
− OpEx
−$69.9K −$7.75/SF
NOI
$85.4K $9.47/SF
Area
New Castle County, DE
Vacancy
6.20%
Lease Rate
$18.36 /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%
$1,708,360
Cap Rate 7%
$1,220,257
Cap Rate 9%
$949,089
Alternative Uses
Best Use
Apartment 5plus
$1.22M
$1.07M – $1.42M
NOI $85,418 @ 7.0% cap · market cap 2.85%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $150,992 @ 7.0% cap · market cap 5.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,093
Businesses Nearby
Explore this area
Business Placement
Demographics for 19711, DE
48,477
Population
20,617
Households
2.4
Avg Household Size
37
Median Age
53%
College-Educated
95%
High-School Grad
27.4 sq mi
ZIP Area
1,769
Density / Sq Mi
$94,455
Median Household Income
$43,790
Median Earnings
$1,516
Median Rent
$376,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Five-unit student housing near University of Delaware campus.
Where is this apartment building located?
The property is located at 118 NEW LONDON ROAD Newark, DE.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: 100% occupancy since 2021 with favorable annual rent increases.; Strategically located between UD's main campus and north campus.; Five‑unit student housing investment opportunity with high density garden apartment zoning.
