Student Housing Row
For Sale
$2,995,000
118 NEW LONDON ROAD, Newark, DE 19711
Five row homes configured as high-density garden apartment-style student housing, located between UD’s main campus and north campus.
Property Size9,018 SF
Price / SF$332.11
Days on Market117
Property Features for 118 NEW LONDON ROAD
General Information
Standard status
Active
Size
9,018 SF
Property subtype
Multi-Family
Zoning
Garden Apartment
Occupancy
100%
Additional Details
Multifamily Units
5
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
Year Renovated
2021
Tenancy
Multi
Listing Agency:
RE/MAX Edge
(302) 442-4200
Listed By:
Kyle Mayhew · License #R3-0013118
(302) 750-4555
Source:
Xome
Added: May 9
Changed: Sep 2
Last Checked: Sep 1 at 4:57PM
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.
118 New London Road is a five-unit student housing property originally comprised of three detached 4-bedroom homes. The property was rezoned and reimagined in 2021, with renovations to the original homes and two additional homes built in between. The result is one cohesive property consisting of five row homes under high-density garden apartment zoning.
The property is located between UD’s main campus and the north campus. Public remarks indicate 100% occupancy since inception and favorable annual rent increases. The owners designed the units for college students, with layouts oriented toward individual bedrooms and multiple baths.
The combination of recent reconfiguration and student housing focus is intended to serve demand for this type of unit in an area with other comparable student housing complexes.
The property is located between UD’s main campus and the north campus. Public remarks indicate 100% occupancy since inception and favorable annual rent increases. The owners designed the units for college students, with layouts oriented toward individual bedrooms and multiple baths.
The combination of recent reconfiguration and student housing focus is intended to serve demand for this type of unit in an area with other comparable student housing complexes.
Key Highlights
- 5‑unit student housing composed of five row homes, configured as high‑density garden apartment‑style units
- Reimagined in 2021 after rezoning: originally three detached 4‑bedroom homes plus two additional 5‑bedroom homes
- Central air cooling; vinyl and carpet flooring; metal and composition shingle roof
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
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
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
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Frequently Asked Questions
What type of property is this?
Apartment building - Five row homes configured as high-density garden apartment-style student housing, located between UD’s main campus and north 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: 5‑unit student housing composed of five row homes, configured as high‑density garden apartment‑style units; Reimagined in 2021 after rezoning: originally three detached 4‑bedroom homes plus two additional 5‑bedroom homes; Central air cooling; vinyl and carpet flooring; metal and composition shingle roof
