Mixed-Use Redevelopment
For Sale
$985,000
1405 S 5th Avenue, Wilmington, NC 28401
COMMERCIAL - Wilmington, NC
Property Size7,015 SF
Lot Size0.34 Acres
Price / SF$140.41
Days on Market58
Property Features for 1405 S 5th Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
UMX
Parking features
Off Street, Paved or Surfaced
Subdivision
Not In Subdivision
Directions
Take Market Street toward downtown Wilmington, turn left on S 3rd, turn left on Greenfield Street, turn left on 5th Avenue and property is on the right.
Standard status
Active
APN
R05417-006-004-003
Size
7,015 SF
Lot size
0.34 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Tr A Lot 2-3 Blk 576 City Of Wilmington Recom
Tax Annual Amount
2895
Legal Description
Tr A Lot 2-3 Blk 576 City Of Wilmington Recom
Utilities
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1948
Number of units
2
Flooring type
Concrete
Building materials
Block, Steel Frame, Wood Frame
Roof type
Membrane, Shingle, Metal
Listing Agency:
RE/MAX Executive
(910) 218-2000
Listed By:
Allison Justice · License #348022
(910) 540-1856
Added: Jun 23
Changed: Aug 19
Last Checked: Aug 19 at 7:06PM
MLS# 100578856
Copyright © 2026 Hive MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use property comprises two connected buildings totaling 7,015 square feet on 0.3419 acres. The interior configuration includes warehouse, office, storage, and residential components, providing a varied existing layout for continued commercial use or redevelopment. Construction dates are 1948 and 1991, with block, steel frame, and wood frame materials, concrete flooring, membrane, shingle, and metal roofing, natural gas forced-air heat, and central air conditioning.
The property is located at 1405 S 5th Avenue in Wilmington, within the UMX zoning district. Paved and off-street parking, public water, and a location described as just minutes from Downtown Wilmington add practical context for the site. Its Wilmington setting and mixed-use zoning support consideration of adaptive reuse or a future combination of commercial and residential functions.
The property is located at 1405 S 5th Avenue in Wilmington, within the UMX zoning district. Paved and off-street parking, public water, and a location described as just minutes from Downtown Wilmington add practical context for the site. Its Wilmington setting and mixed-use zoning support consideration of adaptive reuse or a future combination of commercial and residential functions.
Key Highlights
- 7,015‑square‑foot property on 0.3419 acres
- Two connected buildings constructed in 1948 and 1991
- UMX zoning supports mixed commercial and residential use
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
$86,880
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
8.82%
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%
$1,737,600
$1.7M
Cap Rate 7%
$1,241,143
$1.2M
Cap Rate 9%
$965,333
$965.3K
Market Conditions
NOI Build-Up for 7,015 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
$109.4K $15.60/SF
− Vacancy
−$7.2K −$1.03/SF
EGI
$102.2K $14.57/SF
− OpEx
−$15.3K −$2.19/SF
NOI
$86.9K $12.38/SF
Area
Wilmington, NC
Vacancy
6.60%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
15.00%
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%
$1,737,600
Cap Rate 7%
$1,241,143
Cap Rate 9%
$965,333
Alternative Uses
Best Use
Mixed Use
$84.59M
$74.02M – $98.69M
NOI $5,921,387 @ 7.0% cap · market cap 601.16%
Second Best
Warehouse
$1.24M
$1.09M – $1.45M
NOI $86,880 @ 7.0% cap · market cap 8.82%
Theoretical Best
Multifamily LT 5
$85.89M
$75.16M – $100.21M
NOI $6,012,619 @ 7.0% cap · market cap 610.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
408
Businesses Nearby
Explore this area
Business Placement
Demographics for 28401, NC
22,204
Population
13,017
Households
1.7
Avg Household Size
41
Median Age
34%
College-Educated
88%
High-School Grad
31.0 sq mi
ZIP Area
716
Density / Sq Mi
$52,159
Median Household Income
$35,739
Median Earnings
$1,183
Median Rent
$263,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - UMX-zoned property combines warehouse, office, storage, and residential components within connected commercial buildings.
Where is this mixed-use property located?
The property is located at 1405 S 5th Avenue Wilmington, NC.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: 7,015‑square‑foot property on 0.3419 acres; Two connected buildings constructed in 1948 and 1991; UMX zoning supports mixed commercial and residential use
