Renovated Five-Unit Apartment
For Sale
$908,000
271 Sherman Ave, New Haven, CT 06511
Custom kitchens, tiled bathrooms, and updated building systems are installed throughout.
Property Size4,055 SF
Days on Market8
Property Features for 271 Sherman Ave
General Information
Standard status
Active
Size
4,055 SF
Property subtype
Multi Family
Building Details
Building Size
4,055 SF
Year Built
1900
Listing Agency:
mygoodagent
(203) 606-5010
Listed By:
Dominique M. Larose
(203) 606-5010
Source:
Elliman
Added: Aug 15
Changed: Aug 21
Last Checked: Aug 22 at 8:04AM
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 mygoodagent
Investment Insights
Based on property information with market context.
This five-unit apartment building at 271 Sherman Ave in New Haven combines a four-unit one-bedroom mix with one large three-bedroom apartment. Property improvements include a new roof, custom kitchens with stone countertops, remodeled bathrooms with tiled walls, hardwood and tile flooring, new windows, updated mechanical systems, and upgraded electric and plumbing. The building was constructed in 1900.
The apartments are described as leased with stabilized occupancy. The unit configuration includes four one-bedroom residences and a larger three-bedroom layout, providing a range of apartment sizes within one property. The location records a BikeScore of 97, a WalkScore of 79, and a TransitScore of 60. The property is in the Dwight neighborhood of New Haven.
The apartments are described as leased with stabilized occupancy. The unit configuration includes four one-bedroom residences and a larger three-bedroom layout, providing a range of apartment sizes within one property. The location records a BikeScore of 97, a WalkScore of 79, and a TransitScore of 60. The property is in the Dwight neighborhood of New Haven.
Key Highlights
- Four 1‑bedroom apartments and one large 3‑bedroom apartment
- New roof, windows, mechanicals, electric, and plumbing
- Custom kitchens with stone countertops in every unit
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
$63,512
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
6.99%
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%
$1,270,240
$1.3M
Cap Rate 7%
$907,314
$907.3K
Cap Rate 9%
$705,689
$705.7K
Market Conditions
NOI Build-Up for 4,055 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
$123.1K $30.36/SF
− Vacancy
−$7.6K −$1.88/SF
EGI
$115.5K $28.48/SF
− OpEx
−$52.0K −$12.81/SF
NOI
$63.5K $15.66/SF
Area
New Haven, CT
Vacancy
6.20%
Lease Rate
$30.36 /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%
$1,270,240
Cap Rate 7%
$907,314
Cap Rate 9%
$705,689
Alternative Uses
Best Use
Apartment 5plus
$907.3K
$793.9K – $1.06M
NOI $63,512 @ 7.0% cap · market cap 6.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.30M
$1.14M – $1.52M
NOI $91,308 @ 7.0% cap · market cap 10.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,446
Businesses Nearby
Explore this area
Business Placement
Demographics for 06511, CT
55,879
Population
24,579
Households
2.3
Avg Household Size
29
Median Age
48%
College-Educated
91%
High-School Grad
5.8 sq mi
ZIP Area
9,634
Density / Sq Mi
$56,300
Median Household Income
$34,409
Median Earnings
$1,534
Median Rent
$313,400
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?
Apartment building - Custom kitchens, tiled bathrooms, and updated building systems are installed throughout.
Where is this apartment building located?
The property is located at 271 Sherman Ave New Haven, CT.
What is the asking price?
The asking price for this property is $908,000.
What are key features of this property?
This property features: Four 1‑bedroom apartments and one large 3‑bedroom apartment; New roof, windows, mechanicals, electric, and plumbing; Custom kitchens with stone countertops in every unit
