Rebuilt 5-Unit Apartment
For Sale
$750,000
228 Hanover Street, Trenton, NJ 08608
Five individually metered units were rebuilt in 2023 with energy-efficient HVAC and full sprinkler protection.
Property Size3,394 SF
Price / SF$220.98
Days on Market135
Property Features for 228 Hanover Street
General Information
Standard status
Active
Size
3,394 SF
Property subtype
Multi-Family
Taxes and HOA fees
Annual Taxes
$4,181
Amenities
Central Air
3
HIST
Parking.
Public, On Street.
24X100
Downtown.
Building Details
Year Built
1900
Listing Agency:
Pott Real Estate, LLC
(609) 793-9639
Listed By:
Roland Pott · License #0342277
(609) 793-9639
Source:
Xome
Added: Mar 29
Changed: Aug 8
Last Checked: Aug 10 at 2:45AM
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 Pott Real Estate, LLC
Investment Insights
Based on property information with market context.
This is a 5-unit apartment building that was completely rebuilt in 2023. Each unit features hardwood flooring, granite countertops, porcelain bath tile, custom blinds, and energy-efficient HVAC. The building has individually metered units for power and HVAC, and is fully sprinklered with a fire alarm.
The property is located in downtown Trenton, within walking distance of the Trenton Transit Center and with access to Route 1. Retail services in the area are described as being within a couple blocks, including a supermarket, restaurants, and bank branches.
The offering presents a renovated multifamily asset with updated unit interiors and modern mechanical and life-safety systems.
The property is located in downtown Trenton, within walking distance of the Trenton Transit Center and with access to Route 1. Retail services in the area are described as being within a couple blocks, including a supermarket, restaurants, and bank branches.
The offering presents a renovated multifamily asset with updated unit interiors and modern mechanical and life-safety systems.
Key Highlights
- 5‑unit apartment building rebuilt in 2023 with individually metered power & HVAC for each unit
- Energy‑efficient HVAC plus central air cooling
- Fully sprinklered with fire alarm
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
$51,801
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
6.91%
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%
$1,036,020
$1.0M
Cap Rate 7%
$740,014
$740.0K
Cap Rate 9%
$575,567
$575.6K
Market Conditions
NOI Build-Up for 3,394 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
$101.8K $30.00/SF
− Vacancy
−$7.6K −$2.25/SF
EGI
$94.2K $27.75/SF
− OpEx
−$42.4K −$12.49/SF
NOI
$51.8K $15.26/SF
Area
Mercer County, NJ
Vacancy
7.50%
Lease Rate
$30.00 /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%
$1,036,020
Cap Rate 7%
$740,014
Cap Rate 9%
$575,567
Alternative Uses
Best Use
Apartment 5plus
$740.0K
$647.5K – $863.4K
NOI $51,801 @ 7.0% cap · market cap 6.91%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.09M
$955.5K – $1.27M
NOI $76,438 @ 7.0% cap · market cap 10.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,424
Businesses Nearby
Explore this area
Business Placement
Demographics for 08608, NJ
1,269
Population
645
Households
2
Avg Household Size
41
Median Age
25%
College-Educated
77%
High-School Grad
0.3 sq mi
ZIP Area
4,230
Density / Sq Mi
$48,232
Median Earnings
$1,009
Median Rent
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Five individually metered units were rebuilt in 2023 with energy-efficient HVAC and full sprinkler protection.
Where is this apartment building located?
The property is located at 228 Hanover Street Trenton, NJ.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 5‑unit apartment building rebuilt in 2023 with individually metered power & HVAC for each unit; Energy‑efficient HVAC plus central air cooling; Fully sprinklered with fire alarm
