Penthouse Residential Income
New
For Sale
$669,000
2840 S OCEAN Boulevard 601, Palm Beach, FL 33480
The corner residence offers ocean views from every room and a wraparound balcony.
Property Size1,290 SF
Days on Market7
Property Features for 2840 S OCEAN Boulevard 601
General Information
Standard status
Active
Size
1,290 SF
Property subtype
Triplex
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$4,769
Amenities
heated swimming pool
dock
BBQ area
24-hour door person
full time manager
Building Details
Building Size
1,290 SF
Year Built
1968
Listing Agency:
Illustrated Properties
Listed By:
Linda D. Essig · License #3004207
(561) 707-1173
Source:
Meyerlucas
Added: Sep 20
Changed: Sep 24
Last Checked: Sep 24 at 2:45PM
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 Illustrated Properties
Investment Insights
Based on property information with market context.
This penthouse-floor corner residence has a 600-square-foot wraparound balcony and ocean views from every room. Double doors open to the interior, which includes an open kitchen with granite countertops. The building dates to 1968 and offers a heated swimming pool, a dock for boating and fishing, and a barbecue area with high-top seating.
Across from the Four Seasons, the property is near a wide beach, shops, and restaurants. Building services include a full-time manager and a 24-hour doorperson.
Across from the Four Seasons, the property is near a wide beach, shops, and restaurants. Building services include a full-time manager and a 24-hour doorperson.
Key Highlights
- 600‑square‑foot wraparound balcony
- Ocean views from every room
- Penthouse‑floor corner residence with an open kitchen and granite countertops
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
$19,839
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
2.97%
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%
$396,780
$396.8K
Cap Rate 7%
$283,414
$283.4K
Cap Rate 9%
$220,433
$220.4K
Market Conditions
NOI Build-Up for 1,290 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
$37.8K $29.28/SF
− Vacancy
−$1.7K −$1.32/SF
EGI
$36.1K $27.96/SF
− OpEx
−$16.2K −$12.58/SF
NOI
$19.8K $15.38/SF
Area
Palm Beach County, FL
Vacancy
4.50%
Lease Rate
$29.28 /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%
$396,780
Cap Rate 7%
$283,414
Cap Rate 9%
$220,433
Alternative Uses
Best Use
Apartment 5plus
$283.4K
$248.0K – $330.7K
NOI $19,839 @ 7.0% cap · market cap 2.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$908.5K
$794.9K – $1.06M
NOI $63,594 @ 7.0% cap · market cap 9.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
392
Businesses Nearby
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Business Placement
Demographics for 33480, FL
10,716
Population
12,438
Households
0.9
Avg Household Size
68
Median Age
65%
College-Educated
98%
High-School Grad
3.9 sq mi
ZIP Area
2,748
Density / Sq Mi
$151,121
Median Household Income
$81,850
Median Earnings
$1,840
Median Rent
$1,218,500
Median Home Value
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Frequently Asked Questions
What type of property is this?
Residential income property - The corner residence offers ocean views from every room and a wraparound balcony.
Where is this residential income property located?
The property is located at 2840 S OCEAN Boulevard 601 Palm Beach, FL.
What is the asking price?
The asking price for this property is $669,000.
What are key features of this property?
This property features: 600‑square‑foot wraparound balcony; Ocean views from every room; Penthouse‑floor corner residence with an open kitchen and granite countertops
