Corner Lot Multifamily
For Sale
$557,500
13444 MADISON Ave, Ocean City, MD 21842
Oversized corner lot with water views and multifamily zoning.
Property Size2,000 SF
Lot Size0.11 Acres
Days on Market272
Property Features for 13444 MADISON Ave
General Information
Standard status
Active
Size
2,000 SF
Lot size
0.11 Acres
Property subtype
Other
Taxes and HOA fees
Annual Taxes
$1,903
Building Details
Building Size
2,000 SF
Year Built
1958
Listing Agency:
(301) 325-5308
Listed By:
Kelly R Williams · License #603911
(301) 325-5308
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 26
Last Checked: Aug 26 at 11:21AM
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 Kelly R Williams
Investment Insights
Based on property information with market context.
This property presents an opportunity for various development possibilities. Situated on an oversized corner lot, the property offers water views from three sides. The zoning is R-3, which allows for multi-family and residential use. The zoning laws permit building up to 45 feet, offering the potential to add two or more levels. Approved variances are in hand, including one for a second and third floor cantilever, facilitating expansion plans. An additional variance for an auxiliary dwelling unit (ADU) is also in place. The property is suited for an investor seeking profit or an individual aiming to construct a primary residence, vacation getaway, or investment opportunity.
Key Highlights
- Oversized corner lot with water views from three sides.
- Zoned R‑3 for multi‑family and residential use.
- Approved variances in hand for cantilevered second and third floors.
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
$18,823
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
3.38%
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%
$376,460
$376.5K
Cap Rate 7%
$268,900
$268.9K
Cap Rate 9%
$209,144
$209.1K
Market Conditions
NOI Build-Up for 2,000 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
$36.7K $18.36/SF
− Vacancy
−$2.5K −$1.25/SF
EGI
$34.2K $17.11/SF
− OpEx
−$15.4K −$7.70/SF
NOI
$18.8K $9.41/SF
Area
Worcester County, MD
Vacancy
6.80%
Lease Rate
$18.36 /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%
$376,460
Cap Rate 7%
$268,900
Cap Rate 9%
$209,144
Alternative Uses
Best Use
Apartment 5plus
$268.9K
$235.3K – $313.7K
NOI $18,823 @ 7.0% cap · market cap 3.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$480.6K
$420.5K – $560.7K
NOI $33,643 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
108
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
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?
Multifamily property - Oversized corner lot with water views and multifamily zoning.
Where is this multifamily property located?
The property is located at 13444 MADISON Ave Ocean City, MD.
What is the asking price?
The asking price for this property is $557,500.
What are key features of this property?
This property features: Oversized corner lot with water views from three sides.; Zoned R‑3 for multi‑family and residential use.; Approved variances in hand for cantilevered second and third floors.
