Updated Multi-Unit Property and Buildable
For Sale
$839,900
205 10TH ST, Ocean City, MD 21842
Updated multi-unit property with development opportunity near Ocean City's beach.
Property Size2,744 SF
Price / SF$306.09
Days on Market188
Property Features for 205 10TH ST
General Information
Standard status
Active
Size
2,744 SF
Property subtype
Multi-family
Listing Agency:
Berkshire Hathaway HomeServices PenFed Realty - OP
(410) 208-3500
Listed By:
Spike Sands · License #637504
(443) 235-0489
Source:
Opal-realestate
Added: Mar 11
Changed: Sep 9
Last Checked: Sep 12 at 6:06AM
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 Berkshire Hathaway HomeServices PenFed Realty - OP
Investment Insights
Based on property information with market context.
This property features an updated multi-unit building and an adjacent buildable lot in downtown Ocean City, located two blocks from the beach, boardwalk, and entertainment district. The 2,744 sq. ft. building includes four move-in-ready units: two three-bedroom, two-bath units, a one-bedroom, one-bath unit with a full kitchen and living area, and a rear efficiency unit with a private entrance. Each unit has its own porch and is furnished with updated appliances and coastal-inspired decor. The building has undergone significant renovations, including a new front facade with three levels of decks, new vinyl rails and steps, a new roof, and interior upgrades. A shared, coin-operated laundry facility is available on-site. The property includes one of the last remaining buildable lots in downtown Ocean City, offering a chance to expand with additional rental units or custom development. Update 1/21/26: New Kitchen being installed in Unit 5. This package delivers present-day performance and future upside in a walkable, high-demand location.
Key Highlights
- Rare buildable lot included in downtown Ocean City, offering significant development potential.
- Prime location: Two blocks from the beach, boardwalk, and entertainment district.
- Fully updated multi‑unit property with four move‑in‑ready units.
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
$28,783
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
3.43%
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%
$575,660
$575.7K
Cap Rate 7%
$411,186
$411.2K
Cap Rate 9%
$319,811
$319.8K
Market Conditions
NOI Build-Up for 2,744 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
$44.5K $16.20/SF
− Vacancy
−$3.3K −$1.22/SF
EGI
$41.1K $14.99/SF
− OpEx
−$12.3K −$4.50/SF
NOI
$28.8K $10.49/SF
Area
Worcester County, MD
Vacancy
7.50%
Lease Rate
$16.20 /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%
$575,660
Cap Rate 7%
$411,186
Cap Rate 9%
$319,811
Alternative Uses
Best Use
Multifamily LT 5
$411.2K
$359.8K – $479.7K
NOI $28,783 @ 7.0% cap · market cap 3.43%
Second Best
Apartment 5plus
$368.9K
$322.8K – $430.4K
NOI $25,825 @ 7.0% cap · market cap 3.07%
Theoretical Best
Office A
$659.4K
$577.0K – $769.3K
NOI $46,158 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
781
Businesses Nearby
Explore this area
Business Placement
Demographics for 21842, MD
11,104
Population
32,684
Households
0.3
Avg Household Size
53
Median Age
39%
College-Educated
95%
High-School Grad
9.2 sq mi
ZIP Area
1,207
Density / Sq Mi
$75,372
Median Household Income
$40,189
Median Earnings
$1,258
Median Rent
$415,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Quadplex - Updated multi-unit property with development opportunity near Ocean City's beach.
Where is this quadplex located?
The property is located at 205 10TH ST Ocean City, MD.
What is the asking price?
The asking price for this property is $839,900.
What are key features of this property?
This property features: Rare buildable lot included in downtown Ocean City, offering significant development potential.; Prime location: Two blocks from the beach, boardwalk, and entertainment district.; Fully updated multi‑unit property with four move‑in‑ready units.
