Residential Income Property Near
For Sale
$625,000
246 East Avenue, Burlington, VT 05401
Income-generating property near the University of Vermont Medical Center.
Property Size1,944 SF
Price / SF$321.50
Days on Market375
Property Features for 246 East Avenue
General Information
Standard status
Active
Size
1,944 SF
Property subtype
Multi-family
Building Details
Year Built
1957
Listing Agency:
Champagne Real Estate
Listed By:
Andrea Champagne
(802) 372-4500
Source:
Aultcommercial
Added: Aug 26, 2025
Changed: Sep 2
Last Checked: Sep 1 at 8:56PM
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 Champagne Real Estate
Investment Insights
Based on property information with market context.
This residential income property is located within walking distance of the University of Vermont Medical Center and The University of Vermont College. The property is currently rented through May 31st 2026, generating an annual gross income of $48,000. A new lease has been signed for the period of June 1st 2026 through May 31st 2027, which will generate an annual gross income of $54,000. The property has been inspected and registered with the city for rental use. The Comprehensive Development Ordinance enacted by the City in 2025 allows for the development of more units, as the property is zoned Residential Lower Intensity. Any development plans would need to be submitted to and approved by the City of Burlington. Showings are available by appointment.
Key Highlights
- Development potential with Residential Lower Intensity zoning.
- Currently generating substantial rental income: $48,000 annually through May 31st, 2026, increasing to $54,000 annually from June 1st, 2026, through May 31st, 2027.
- Prime location within walking distance to the University of Vermont Medical Center and The University of Vermont College.
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
$19,015
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
3.04%
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%
$380,300
$380.3K
Cap Rate 7%
$271,643
$271.6K
Cap Rate 9%
$211,278
$211.3K
Market Conditions
NOI Build-Up for 1,944 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
$35.0K $18.00/SF
− Vacancy
−$420 −$0.22/SF
EGI
$34.6K $17.78/SF
− OpEx
−$15.6K −$8.00/SF
NOI
$19.0K $9.78/SF
Area
Chittenden County, VT
Vacancy
1.20%
Lease Rate
$18.00 /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%
$380,300
Cap Rate 7%
$271,643
Cap Rate 9%
$211,278
Alternative Uses
Best Use
Apartment 5plus
$271.6K
$237.7K – $316.9K
NOI $19,015 @ 7.0% cap · market cap 3.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$533.2K
$466.6K – $622.1K
NOI $37,325 @ 7.0% cap · market cap 5.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,510
Businesses Nearby
Explore this area
Business Placement
Demographics for 05401, VT
32,059
Population
13,898
Households
2.3
Avg Household Size
28
Median Age
63%
College-Educated
95%
High-School Grad
6.1 sq mi
ZIP Area
5,256
Density / Sq Mi
$60,532
Median Household Income
$23,422
Median Earnings
$1,614
Median Rent
$463,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Income-generating property near the University of Vermont Medical Center.
Where is this residential income property located?
The property is located at 246 East Avenue Burlington, VT.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Development potential with Residential Lower Intensity zoning.; Currently generating substantial rental income: $48,000 annually through May 31st, 2026, increasing to $54,000 annually from June 1st, 2026, through May 31st, 2027.; Prime location within walking distance to the University of Vermont Medical Center and The University of Vermont College.
