Renovated Multifamily Investment
For Sale
$5,579,500
125 N Davis Ln, Defuniak Springs, FL 32433
55-unit multifamily property with 95% occupancy in Northwest Florida.
Property Size42,000 SF
Price / SF$132.85
Days on Market172
Property Features for 125 N Davis Ln
General Information
Standard status
Active
Size
42,000 SF
Class
C
Property subtype
Multifamily
Building Details
Building Size
42,000 SF
Listing Agency:
SVN RIVIERA COMMERCIAL
(850) 240-3122
Listed By:
Gordon MacLean, CCIM · License #FL #BK3223217
(850) 240-3122
Source:
Svn
Added: Mar 6
Changed: Aug 11
Last Checked: Aug 25 at 5:56AM
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.
Located in Northwest Florida, this multifamily property features 55 units within a 42,000 SF low-rise/garden building. The property, zoned for Multifamily use, has undergone a recent renovation in 2023, including new metal roofs and freshly painted low-maintenance hard coat stucco exteriors. The property maintains an impressive 95% occupancy rate. The location offers proximity to major thoroughfares, the historic downtown area, Chautauqua Vineyard & Winery, and Lake DeFuniak. An assumable Freddie Mac loan at 3.54% with approximately 7 years remaining is available.
Key Highlights
- Impressive 95% occupancy rate indicating strong performance.
- Assumable Freddie Mac loan at 3.54% with approximately 7 years remaining.
- Recently renovated in 2023, including new metal roofs and fresh paint.
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
$465,142
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
8.34%
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%
$9,302,840
$9.3M
Cap Rate 7%
$6,644,886
$6.6M
Cap Rate 9%
$5,168,244
$5.2M
Market Conditions
NOI Build-Up for 42,000 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
−$162.3K −$3.86/SF
EGI
$845.7K $20.14/SF
− OpEx
−$380.6K −$9.06/SF
NOI
$465.1K $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%
$9,302,840
Cap Rate 7%
$6,644,886
Cap Rate 9%
$5,168,244
Alternative Uses
Best Use
Apartment 5plus
$6.64M
$5.81M – $7.75M
NOI $465,142 @ 7.0% cap · market cap 8.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.56M
$9.24M – $12.32M
NOI $739,368 @ 7.0% cap · market cap 13.25%
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 - 55-unit multifamily property with 95% occupancy in Northwest Florida.
Where is this apartment building located?
The property is located at 125 N Davis Ln 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: Impressive 95% occupancy rate indicating strong performance.; Assumable Freddie Mac loan at 3.54% with approximately 7 years remaining.; Recently renovated in 2023, including new metal roofs and fresh paint.
