Duplex with Two Rental
For Sale
$540,000
205 S Vermont Avenue, Atlantic City, NJ 08401
Two-level residential income property near the Atlantic City beach with eight bedrooms and three bathrooms across two units.
Property Size2,312 SF
Price / SF$233.56
Days on Market473
Property Features for 205 S Vermont Avenue
General Information
Standard status
Active
Size
2,312 SF
Property subtype
Multi-family
Zoning
LH-2
Units
Unit Mix
1 x 6BR/2BA, 1 x 2BR/1BA
Multifamily Units
2
Building Details
Buildings
1
Tenancy
Multi
Listing Agency:
BHHS FOX and ROACH-Northfield
Listed By:
GORAN CEDEVSKI
(800) 299-2129
Source:
Actionplusrealty
Added: May 15, 2025
Changed: Aug 30
Last Checked: Aug 30 at 6:09PM
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 BHHS FOX and ROACH-Northfield
Investment Insights
Based on property information with market context.
This 2,312-square-foot duplex contains two residential units. The upper level has six bedrooms and two bathrooms, while the ground-floor unit includes two bedrooms and one bathroom. The existing configuration supports separate occupancy within the building and provides a defined layout for continued rental use or property improvements.
The property is located at 205 S Vermont Avenue in Atlantic City, within a short walk of the beach. LH-2 zoning permits multifamily residential development, including low-rise and mid-rise buildings, as well as restaurants, bars, non-casino hotels, townhouses, and other stated uses.
The property is located at 205 S Vermont Avenue in Atlantic City, within a short walk of the beach. LH-2 zoning permits multifamily residential development, including low-rise and mid-rise buildings, as well as restaurants, bars, non-casino hotels, townhouses, and other stated uses.
Key Highlights
- 2,312‑square‑foot duplex with two separate residential units
- Upper unit includes 6 bedrooms and 2 bathrooms
- Ground‑floor unit provides 2 bedrooms and 1 bathroom
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
$26,330
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
4.88%
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%
$526,600
$526.6K
Cap Rate 7%
$376,143
$376.1K
Cap Rate 9%
$292,556
$292.6K
Market Conditions
NOI Build-Up for 2,312 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
$40.2K $17.40/SF
− Vacancy
−$2.6K −$1.13/SF
EGI
$37.6K $16.27/SF
− OpEx
−$11.3K −$4.88/SF
NOI
$26.3K $11.39/SF
Area
Atlantic County, NJ
Vacancy
6.50%
Lease Rate
$17.40 /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%
$526,600
Cap Rate 7%
$376,143
Cap Rate 9%
$292,556
Alternative Uses
Best Use
Multifamily LT 5
$376.1K
$329.1K – $438.8K
NOI $26,330 @ 7.0% cap · market cap 4.88%
Second Best
Apartment 5plus
$330.6K
$289.3K – $385.7K
NOI $23,142 @ 7.0% cap · market cap 4.29%
Theoretical Best
Warehouse
$861.0K
$753.4K – $1.00M
NOI $60,268 @ 7.0% cap · market cap 11.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
631
Businesses Nearby
Explore this area
Business Placement
Demographics for 08401, NJ
38,536
Population
20,116
Households
1.9
Avg Household Size
38
Median Age
21%
College-Educated
76%
High-School Grad
10.7 sq mi
ZIP Area
3,601
Density / Sq Mi
$36,375
Median Household Income
$28,915
Median Earnings
$1,086
Median Rent
$189,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two-level residential income property near the Atlantic City beach with eight bedrooms and three bathrooms across two units.
Where is this duplex located?
The property is located at 205 S Vermont Avenue Atlantic City, NJ.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: 2,312‑square‑foot duplex with two separate residential units; Upper unit includes 6 bedrooms and 2 bathrooms; Ground‑floor unit provides 2 bedrooms and 1 bathroom
