Renovated Apartment
For Sale
Contact for pricing
704-706 N Market St, Wilmington, DE 19801
Recently updated commercial space supports student housing, apartment, or hotel conversion in Wilmington’s Central Business District.
Property Size42,706 SF
Price / SF$105.37
Days on Market699
Property Features for 704-706 N Market St
General Information
Standard status
Active
Size
42,706 SF
Property subtype
MULTIFAMILY
Listing Agency:
LMT Commercial Realty / CORFAC International
(302) 383-1911
Listed By:
Chris Moore
(302) 383-1911
Source:
Moodyscre
Added: Oct 2, 2024
Changed: Aug 30
Last Checked: Aug 30 at 6:25PM
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 LMT Commercial Realty / CORFAC International
Investment Insights
Based on property information with market context.
This approximately 42,706-square-foot property contains recently renovated space within Wilmington’s Central Business District. The building was originally designed as a dormitory, providing a physical layout associated with residential occupancy and student-oriented use.
The surrounding district includes multifamily housing, restaurants, retail shops, and office space, with both new and updated properties nearby. The existing improvements can support continued student housing or conversion to apartments or a hotel, subject to applicable approvals and requirements.
The surrounding district includes multifamily housing, restaurants, retail shops, and office space, with both new and updated properties nearby. The existing improvements can support continued student housing or conversion to apartments or a hotel, subject to applicable approvals and requirements.
Key Highlights
- Approximately 42,706 square feet of recently renovated space
- Located in Wilmington’s Central Business District
- Originally designed as a dormitory
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
$404,508
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
8.99%
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%
$8,090,160
$8.1M
Cap Rate 7%
$5,778,686
$5.8M
Cap Rate 9%
$4,494,533
$4.5M
Market Conditions
NOI Build-Up for 42,706 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
$784.1K $18.36/SF
− Vacancy
−$48.6K −$1.14/SF
EGI
$735.5K $17.22/SF
− OpEx
−$331.0K −$7.75/SF
NOI
$404.5K $9.47/SF
Area
New Castle County, DE
Vacancy
6.20%
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%
$8,090,160
Cap Rate 7%
$5,778,686
Cap Rate 9%
$4,494,533
Alternative Uses
Best Use
Apartment 5plus
$5.78M
$5.06M – $6.74M
NOI $404,508 @ 7.0% cap · market cap 8.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.21M
$8.94M – $11.92M
NOI $715,042 @ 7.0% cap · market cap 15.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,565
Businesses Nearby
Explore this area
Business Placement
Demographics for 19801, DE
16,219
Population
9,390
Households
1.7
Avg Household Size
34
Median Age
26%
College-Educated
85%
High-School Grad
4.4 sq mi
ZIP Area
3,686
Density / Sq Mi
$44,505
Median Household Income
$36,684
Median Earnings
$1,126
Median Rent
$196,000
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Recently updated commercial space supports student housing, apartment, or hotel conversion in Wilmington’s Central Business District.
Where is this apartment building located?
The property is located at 704-706 N Market St Wilmington, DE.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Approximately 42,706 square feet of recently renovated space; Located in Wilmington’s Central Business District; Originally designed as a dormitory
