Two-Unit
For Sale
$489,000
205 Thompson Avenue, Middletown, NJ 07748
Residential income property with established occupants and separate three-bedroom and two-bedroom residences.
Property Size1,810 SF
Price / SF$270.17
Days on Market19
Property Features for 205 Thompson Avenue
General Information
Standard status
Active
Size
1,810 SF
Property subtype
Multi-family
Units
Unit Mix
1 x 3BR, 1 x 2BR
Multifamily Units
2
Building Details
Year Built
1923
Listing Agency:
Rewards Realty
Listed By:
Maria Tsabrova
(833) 740-1234
Source:
Actionplusrealty
Added: Aug 10
Changed: Aug 25
Last Checked: Aug 26 at 9:34AM
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 Rewards Realty
Investment Insights
Based on property information with market context.
This two-unit residential property contains a three-bedroom lower residence and a two-bedroom upper residence, providing a distinct unit mix within an 1,810-square-foot building. The property was built in 1923 and is occupied by long-term tenants.
Residents are responsible for all utilities, including water and sewer. The asset is located at 205 Thompson Avenue in Middletown, New Jersey, with the address identifying the property’s local setting.
Residents are responsible for all utilities, including water and sewer. The asset is located at 205 Thompson Avenue in Middletown, New Jersey, with the address identifying the property’s local setting.
Key Highlights
- Two‑unit duplex with separate upper and lower residences
- Three‑bedroom downstairs unit and two‑bedroom upstairs unit
- 1,810‑square‑foot building
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
$30,292
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
6.19%
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%
$605,840
$605.8K
Cap Rate 7%
$432,743
$432.7K
Cap Rate 9%
$336,578
$336.6K
Market Conditions
NOI Build-Up for 1,810 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
$46.3K $25.56/SF
− Vacancy
−$3.0K −$1.65/SF
EGI
$43.3K $23.91/SF
− OpEx
−$13.0K −$7.17/SF
NOI
$30.3K $16.74/SF
Area
Monmouth County, NJ
Vacancy
6.46%
Lease Rate
$25.56 /SF/Yr
Expense Ratio
30.00%
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%
$605,840
Cap Rate 7%
$432,743
Cap Rate 9%
$336,578
Alternative Uses
Best Use
Multifamily LT 5
$432.7K
$378.7K – $504.9K
NOI $30,292 @ 7.0% cap · market cap 6.19%
Second Best
Apartment 5plus
$397.6K
$347.9K – $463.9K
NOI $27,834 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$472.6K
$413.6K – $551.4K
NOI $33,084 @ 7.0% cap · market cap 6.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
210
Businesses Nearby
Explore this area
Business Placement
Demographics for 07748, NJ
28,169
Population
10,446
Households
2.7
Avg Household Size
43
Median Age
52%
College-Educated
96%
High-School Grad
13.0 sq mi
ZIP Area
2,167
Density / Sq Mi
$152,488
Median Household Income
$72,287
Median Earnings
$1,483
Median Rent
$568,000
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Residential income property with established occupants and separate three-bedroom and two-bedroom residences.
Where is this duplex located?
The property is located at 205 Thompson Avenue Middletown, NJ.
What is the asking price?
The asking price for this property is $489,000.
What are key features of this property?
This property features: Two‑unit duplex with separate upper and lower residences; Three‑bedroom downstairs unit and two‑bedroom upstairs unit; 1,810‑square‑foot building
