Kannapolis Townhome Community For
For Sale
Contact for pricing
Pending
1422 Nottingham Rd, Kannapolis, NC 28081
24-unit townhome community with income potential in Kannapolis, NC.
Property Size21,816 SF
Lot Size2.22 Acres
Days on Market204
Property Features for 1422 Nottingham Rd
General Information
Standard status
Pending
Size
21,816 SF
Total Parking Spaces
48
Lot size
2.22 Acres
Property subtype
Multifamily
Zoning
R4
Investment Type
Value Add
Building Details
Year Built
1971
Year Renovated
2024
Buildings
4
Stories
2
Units
24
Listing Agency:
US Developments
Listed By:
Kimberlee Rosenburgh · License #NC 279363
Source:
Crexi
Added: Jan 28
Changed: Aug 8
Last Checked: Aug 19 at 4:54PM
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 US Developments
Investment Insights
Based on property information with market context.
The Townhomes at Cannon Mills, located at 1422 Nottingham Dr., Kannapolis, NC, is a 24-unit townhome community situated on approximately 2.22 acres. The property consists of two-story units with 2 bedrooms and 1.5 bathrooms, each featuring front and back porches, located in a quiet residential neighborhood just outside of Downtown Kannapolis. The property offers durable in-place cash flow with a clear path to additional revenue through continued rent optimization toward prevailing submarket levels, including the opportunity to further modernize remaining interiors with upgraded finishes to support premium rent positioning. A recent capital improvement program of approximately $500,000 materially reduces near-term CapEx and supports long-term performance, including an exterior overhaul (painted brick, metal awnings, shutters, upgraded lighting, gutters), new concrete patios and railings, new windows, upgraded electrical panels, utility optimization, a new asphalt parking lot with wheel bumpers, and targeted HVAC replacements. These improvements enhance curb appeal, operating efficiency, and durability. Kannapolis has emerged as a growth market anchored by the 350-acre North Carolina Research Campus, along with expanding healthcare and advanced manufacturing. The asset is located approximately 2.5 miles from Downtown Kannapolis, less than 5 miles from Atrium Health Cabarrus, and offers convenient access to I-85. It is approximately 25 miles to Uptown Charlotte, providing strong regional demand drivers with a favorable cost-of-living profile. The property size is 21816 square feet. For investors, Townhomes at Cannon Mills combines suburban stability with Charlotte-metro connectivity. It is an upgraded, well-located, income-producing asset positioned for continued performance in a market benefiting from sustained population and income growth.
Key Highlights
- Recently completed ±$500,000 capital improvement program enhances curb appeal, operating efficiency, and durability.
- Durable in‑place cash flow with opportunity for additional revenue through rent optimization and interior upgrades.
- Located in Kannapolis, a growth market anchored by the North Carolina Research Campus, healthcare, and advanced manufacturing.
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
$230,809
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
6.37%
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%
$4,616,180
$4.6M
Cap Rate 7%
$3,297,271
$3.3M
Cap Rate 9%
$2,564,544
$2.6M
Market Conditions
NOI Build-Up for 21,816 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
$458.1K $21.00/SF
− Vacancy
−$38.5K −$1.76/SF
EGI
$419.7K $19.24/SF
− OpEx
−$188.8K −$8.66/SF
NOI
$230.8K $10.58/SF
Area
Cabarrus County, NC
Vacancy
8.40%
Lease Rate
$21.00 /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%
$4,616,180
Cap Rate 7%
$3,297,271
Cap Rate 9%
$2,564,544
Alternative Uses
Best Use
Apartment 5plus
$3.30M
$2.89M – $3.85M
NOI $230,809 @ 7.0% cap · market cap 6.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.87M
$6.01M – $8.01M
NOI $480,650 @ 7.0% cap · market cap 13.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
63
Businesses Nearby
Explore this area
Business Placement
Demographics for 28081, NC
28,583
Population
12,400
Households
2.3
Avg Household Size
38
Median Age
26%
College-Educated
88%
High-School Grad
30.3 sq mi
ZIP Area
943
Density / Sq Mi
$69,167
Median Household Income
$40,167
Median Earnings
$1,080
Median Rent
$257,300
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 - 24-unit townhome community with income potential in Kannapolis, NC.
Where is this apartment building located?
The property is located at 1422 Nottingham Rd Kannapolis, NC.
What is the asking price?
The asking price for this property is $3,625,000.
What are key features of this property?
This property features: Recently completed ±$500,000 capital improvement program enhances curb appeal, operating efficiency, and durability.; Durable in‑place cash flow with opportunity for additional revenue through rent optimization and interior upgrades.; Located in Kannapolis, a growth market anchored by the North Carolina Research Campus, healthcare, and advanced manufacturing.
