23-Unit Apartment
For Sale
$900,000
224 South Broad Street, Klamath Falls, OR 97601
The property combines studio and one-bedroom units with separately metered electrical service.
Property Size10,752 SF
Price / SF$83.71
Days on Market497
Property Features for 224 South Broad Street
General Information
Standard status
Active
Size
10,752 SF
Property subtype
Multi Family
Zoning
LI
Units
Unit Mix
1 x 1BR/1BA, 22 x studio
Multifamily Units
23
Taxes and HOA fees
Annual Taxes
$5,847
Amenities
laundry room
2
Other
Building Details
Year Built
1950
Buildings
1
Listing Agency:
SMI Commercial Real Estate LLC
Listed By:
Jordan Sparks · License #200610098
(541) 646-0650
Source:
Compass
Added: Apr 26, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:51PM
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 SMI Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This 23-unit apartment property, built in 1950, includes 22 studio apartments and one one-bedroom, one-bath apartment. The 10,752-square-foot building has separately metered power for each unit, a basement laundry room, and additional basement area that could be configured for tenant storage. Zoning is LI.
The property is located at 224 South Broad Street in Klamath Falls, within blocks of downtown and a quick commute to OIT. Eleven units are currently vacant, providing existing vacancy within the unit mix.
The property is located at 224 South Broad Street in Klamath Falls, within blocks of downtown and a quick commute to OIT. Eleven units are currently vacant, providing existing vacancy within the unit mix.
Key Highlights
- 23 units: 22 studios and one 1‑bedroom, 1‑bath unit
- 10,752 SF apartment building constructed in 1950
- Power is separately metered for individual 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
$77,577
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
8.62%
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%
$1,551,540
$1.6M
Cap Rate 7%
$1,108,243
$1.1M
Cap Rate 9%
$861,967
$862.0K
Market Conditions
NOI Build-Up for 10,752 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
$154.8K $14.40/SF
− Vacancy
−$13.8K −$1.28/SF
EGI
$141.0K $13.12/SF
− OpEx
−$63.5K −$5.90/SF
NOI
$77.6K $7.22/SF
Area
Klamath County, OR
Vacancy
8.90%
Lease Rate
$14.40 /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%
$1,551,540
Cap Rate 7%
$1,108,243
Cap Rate 9%
$861,967
Alternative Uses
Best Use
Apartment 5plus
$1.11M
$969.7K – $1.29M
NOI $77,577 @ 7.0% cap · market cap 8.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.20M
$1.92M – $2.56M
NOI $153,838 @ 7.0% cap · market cap 17.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
23
Residential units
Location Intelligence
Trade Area within ½ mile
1,317
Businesses Nearby
Explore this area
Business Placement
Demographics for 97601, OR
23,264
Population
10,936
Households
2.1
Avg Household Size
40
Median Age
24%
College-Educated
88%
High-School Grad
577.8 sq mi
ZIP Area
40
Density / Sq Mi
$53,333
Median Household Income
$31,011
Median Earnings
$972
Median Rent
$266,500
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - The property combines studio and one-bedroom units with separately metered electrical service.
Where is this apartment building located?
The property is located at 224 South Broad Street Klamath Falls, OR.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 23 units: 22 studios and one 1‑bedroom, 1‑bath unit; 10,752 SF apartment building constructed in 1950; Power is separately metered for individual units
