Residential Income Property with Development
For Sale
$625,000
246 East Avenue, Burlington, VT 05401
Multi-Family, Burlington, VT
Property Size1,944 SF
Lot Size0.26 Acres
Price / SF$321.50
Days on Market318
Property Features for 246 East Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
RL Lower Intensity
Rooms
Basement
Lot features
Level
Directions
East Ave off of Colchester Ave and Main Street.
Standard status
Active
Size
1,944 SF
Lot size
0.26 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
9333
Utilities
Heating system
Natural Gas
Building Details
Year built
1957
Floors in Building
3
Number of units
1
Building materials
Wood Frame
Roof type
Shingle
Architectural style
Other
Listing Agency:
Champagne Real Estate
(802) 372-4500
Listed By:
Andrea Champagne
(802) 372-4500
Added: Oct 16, 2025
Changed: Aug 19
Last Checked: Aug 29 at 3:06PM
MLS# 5065964
Copyright © 2026 PrimeMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This residential income property is currently configured as a rental and is inspected and registered with the City for rental use. The property is zoned RL Lower Intensity, and it sits on a 0.26-acre lot with a property size of 1,944 square feet. The existing rental status remains in place through May 25, 2027.
The location offers walking distance access to the University of Vermont Medical Center and The University of Vermont College. The City of Burlington enacted a Comprehensive Development Ordinance in 2025, and the documentation provided indicates that ordinance would allow for more units under the property’s current zoning. Any planned increase in units would require submitting and obtaining City approval for development plans.
For tenants, this is an income property with an established rental setup and a known in-place rental term extending through May 25, 2027. For buyers and developers, the combination of RL Lower Intensity zoning and the post-2025 ordinance framework may support future redevelopment, subject to the City’s review and approval process. Showings are available by appointment with 48 hours’ notice.
The location offers walking distance access to the University of Vermont Medical Center and The University of Vermont College. The City of Burlington enacted a Comprehensive Development Ordinance in 2025, and the documentation provided indicates that ordinance would allow for more units under the property’s current zoning. Any planned increase in units would require submitting and obtaining City approval for development plans.
For tenants, this is an income property with an established rental setup and a known in-place rental term extending through May 25, 2027. For buyers and developers, the combination of RL Lower Intensity zoning and the post-2025 ordinance framework may support future redevelopment, subject to the City’s review and approval process. Showings are available by appointment with 48 hours’ notice.
Key Highlights
- Wood‑frame construction with natural gas heating and a shingle roof
- Built in 1957
- Currently rented through May 25, 2027, generating $52,800 annual gross income
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?
Single family property - Rented multi-unit property near UVM Medical Center and UVM College with municipal rental registration and redevelopment path.
Where is this single family 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: Wood‑frame construction with natural gas heating and a shingle roof; Built in 1957; Currently rented through May 25, 2027, generating $52,800 annual gross income
