Residential Buildings Portfolio
For Sale
Contact for pricing
1606 Highland Ave, Vero Beach, FL 32960
Nine residential buildings totaling 9,616 SF with long-term lease.
Property Size9,616 SF
Price / SF$291.18
Days on Market183
Property Features for 1606 Highland Ave
General Information
Standard status
Active
Size
9,616 SF
Property subtype
Multifamily
Investment Type
Sale/Leaseback
Net Operating Income
$207,536
Building Details
Buildings
9
Units
9
Listing Agency:
Lambert Commercial Real Estate Inc
(772) 778-2334
Listed By:
Kevin Lambert · License #BK 3327845
Source:
Crexi
Added: Feb 9
Changed: Aug 8
Last Checked: Aug 8 at 6:32AM
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 Lambert Commercial Real Estate Inc
Investment Insights
Based on property information with market context.
This portfolio includes nine residential buildings totaling 9,616 square feet. The properties have been purchased and renovated within the past 5 years, with renovations varying by address but including full interior renovations, plumbing and electrical upgrades, and recent roof HVAC replacements. The current base rent is $207, 536.80. The lease structure is triple net (NNN) with 3% annual rental increases and two 1-year renewal options with 3% increases. The average lease expiration is February 2034, with 8 years remaining. Landlord responsibilities include the roof, structure, and common area maintenance, with all operating expenses billed back to the tenant, including amortized capital improvements or repairs. Tenant responsibilities include all interior repairs and maintenance, including HVAC. The properties are currently used as monitored sober living facilities. This is a sale-leaseback opportunity from a thriving health and wellness organization. Lease terms may be adjusted to better suit investor needs. The residential or commercial package may be purchased individually. The NOI is $207, 536.80 and the cap rate is 7.41%.
Key Highlights
- Sale‑Leaseback Opportunity from Thriving Health and Wellness Organization
- Triple Net (NNN) Lease Structure with 8 Years Remaining (Average Lease Expiration: February 2034)
- 7.41% CAP Rate with $207,536.80 NOI**
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
$130,128
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
4.65%
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%
$2,602,560
$2.6M
Cap Rate 7%
$1,858,971
$1.9M
Cap Rate 9%
$1,445,867
$1.4M
Market Conditions
NOI Build-Up for 9,616 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
$242.3K $25.20/SF
− Vacancy
−$25.4K −$2.65/SF
EGI
$216.9K $22.55/SF
− OpEx
−$86.8K −$9.02/SF
NOI
$130.1K $13.53/SF
Area
Indian River County, FL
Vacancy
10.50%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$2,602,560
Cap Rate 7%
$1,858,971
Cap Rate 9%
$1,445,867
Alternative Uses
Best Use
Healthcare Medical
$1.86M
$1.63M – $2.17M
NOI $130,128 @ 7.0% cap · market cap 4.65%
Second Best
Apartment 5plus
$1.46M
$1.28M – $1.71M
NOI $102,497 @ 7.0% cap · market cap 3.66%
Theoretical Best
Specialty Retail
$2.11M
$1.85M – $2.46M
NOI $147,618 @ 7.0% cap · market cap 5.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,038
Businesses Nearby
Explore this area
Business Placement
Demographics for 32960, FL
21,522
Population
11,590
Households
1.9
Avg Household Size
48
Median Age
25%
College-Educated
90%
High-School Grad
11.1 sq mi
ZIP Area
1,939
Density / Sq Mi
$52,350
Median Household Income
$30,236
Median Earnings
$1,171
Median Rent
$254,400
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?
Rehabilitation center - Nine residential buildings totaling 9,616 SF with long-term lease.
Where is this rehabilitation center located?
The property is located at 1606 Highland Ave Vero Beach, FL.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Sale‑Leaseback Opportunity from Thriving Health and Wellness Organization; Triple Net (NNN) Lease Structure with 8 Years Remaining (Average Lease Expiration: February 2034); 7.41% CAP Rate with $207,536.80 NOI**
