Northwest Florida Multifamily Investment
For Sale
$5,579,500
125 N Davis Lane, Defuniak Springs, FL 32433
Well-maintained, renovated 55-unit multifamily property in Northwest Florida.
Property Size42,240 SF
Lot Size4.34 Acres
Price / SF$132.09
Days on Market225
Property Features for 125 N Davis Lane
General Information
Standard status
Active
Size
42,240 SF
Lot size
4.34 Acres
Property subtype
Commercial
Amenities
Landscaped
Building Details
Year Built
1984
Listing Agency:
SVN RIVIERA COMMERCIAL
(888) 240-0499
Listed By:
DAVID BOATWRIGHT · License ##3185347
Source:
Corcoran
Added: Jan 12
Changed: Aug 24
Last Checked: Aug 25 at 7:50AM
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 SVN RIVIERA COMMERCIAL
Investment Insights
Based on property information with market context.
This multifamily investment opportunity is located in Northwest Florida. The property is a well-maintained and renovated 42,000 square foot, 55-unit multifamily building. It is located in a prime location zoned for Multifamily use. The property features a low-rise/garden style layout. A current in-place assumable Freddie Mac first mortgage exists with the following terms: Origination date of March 24, 2022, loan amount of $3,120,000, a 10-year term, 30-year amortization, and a rate of 3.54%. The property has a CAP Rate of 7.31% and a Net Operating Income (NOI) of $430,990.00. The property is located in Flood Zone X. Recent updates include new metal roofs in 2023 and freshly painted low maintenance hard coat stucco exteriors, also in 2023. The property boasts an impressive 95% occupancy rate.
Key Highlights
- Assumable Freddie Mac mortgage at a low rate of 3.54% originated in March 2022 with a remaining term.
- Enjoy a high occupancy rate of 95%.
- Strong Net Operating Income (NOI) of $430,990.00 and a 7.31% CAP Rate.
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
$467,800
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
8.38%
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%
$9,356,000
$9.4M
Cap Rate 7%
$6,682,857
$6.7M
Cap Rate 9%
$5,197,778
$5.2M
Market Conditions
NOI Build-Up for 42,240 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
$1.01M $24.00/SF
− Vacancy
−$163.2K −$3.86/SF
EGI
$850.5K $20.14/SF
− OpEx
−$382.7K −$9.06/SF
NOI
$467.8K $11.07/SF
Area
Walton County, FL
Vacancy
16.10%
Lease Rate
$24.00 /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%
$9,356,000
Cap Rate 7%
$6,682,857
Cap Rate 9%
$5,197,778
Alternative Uses
Best Use
Apartment 5plus
$6.68M
$5.85M – $7.80M
NOI $467,800 @ 7.0% cap · market cap 8.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.62M
$9.29M – $12.39M
NOI $743,593 @ 7.0% cap · market cap 13.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
66
Businesses Nearby
Explore this area
Business Placement
Demographics for 32433, FL
18,036
Population
8,059
Households
2.2
Avg Household Size
40
Median Age
13%
College-Educated
83%
High-School Grad
251.3 sq mi
ZIP Area
72
Density / Sq Mi
$51,604
Median Household Income
$35,086
Median Earnings
$1,045
Median Rent
$152,000
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 - Well-maintained, renovated 55-unit multifamily property in Northwest Florida.
Where is this apartment building located?
The property is located at 125 N Davis Lane Defuniak Springs, FL.
What is the asking price?
The asking price for this property is $5,579,500.
What are key features of this property?
This property features: Assumable Freddie Mac mortgage at a low rate of 3.54% originated in March 2022 with a remaining term.; Enjoy a high occupancy rate of 95%.; Strong Net Operating Income (NOI) of $430,990.00 and a 7.31% CAP Rate.
