Mixed-Use Income Property with Tall
For Sale
$2,490,000
402 Applerouth Ln, Key West, FL 33040
Mixed-use building with residential and commercial units and tall ceilings in an X Flood Zone location.
Property Size5,000 SF
Price / SF$498
Days on Market308
Property Features for 402 Applerouth Ln
General Information
Standard status
Active
Size
5,000 SF
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$14,665
Listing Agency:
Preferred Properties (KW)
(305) 747-0369
Listed By:
Key West Sisters
(305) 747-0369
Source:
Exprealty
Added: Oct 24, 2025
Changed: Aug 20
Last Checked: Aug 26 at 12:05PM
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 Preferred Properties (KW)
Investment Insights
Based on property information with market context.
402 Applerouth Ln in Key West, FL presents a mixed-use income property combining residential and commercial units within an iconic Old Town structure. The building is described as having over 5,000 interior square feet, with tall ceilings and historic architectural character, along with custom artistic details that reflect its distinctive design.
The property is positioned near Duval Street, and the remarks specifically note a location in an X Flood Zone. It is presented as a central Key West offering with nearby restaurants, galleries, shopping, and nightlife within minutes, supporting the building’s mix of residential and commercial uses.
For buyers seeking a mixed-use asset, this configuration provides on-site flexibility by pairing residential income with commercial unit income. The overall interior presentation—tall ceilings, historic character, and distinctive finishes—may appeal to tenants and operators looking for a building that stands out visually while accommodating both residential and retail-style programming within the same asset. Investors considering an Old Town mixed-use property can evaluate the unit mix and current income streams as part of their underwriting.
The property is positioned near Duval Street, and the remarks specifically note a location in an X Flood Zone. It is presented as a central Key West offering with nearby restaurants, galleries, shopping, and nightlife within minutes, supporting the building’s mix of residential and commercial uses.
For buyers seeking a mixed-use asset, this configuration provides on-site flexibility by pairing residential income with commercial unit income. The overall interior presentation—tall ceilings, historic character, and distinctive finishes—may appeal to tenants and operators looking for a building that stands out visually while accommodating both residential and retail-style programming within the same asset. Investors considering an Old Town mixed-use property can evaluate the unit mix and current income streams as part of their underwriting.
Key Highlights
- Mixed‑use property with both residential and commercial income units
- Located just steps from Duval Street
- Over 5,000 sq ft interior space
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
$77,588
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
3.12%
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%
$1,551,760
$1.6M
Cap Rate 7%
$1,108,400
$1.1M
Cap Rate 9%
$862,089
$862.1K
Market Conditions
NOI Build-Up for 5,000 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
$151.2K $30.24/SF
− Vacancy
−$10.1K −$2.03/SF
EGI
$141.1K $28.21/SF
− OpEx
−$63.5K −$12.70/SF
NOI
$77.6K $15.52/SF
Area
Monroe County, FL
Vacancy
6.70%
Lease Rate
$30.24 /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%
$1,551,760
Cap Rate 7%
$1,108,400
Cap Rate 9%
$862,089
Alternative Uses
Best Use
Apartment 5plus
$1.11M
$969.9K – $1.29M
NOI $77,588 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.01M
$1.76M – $2.35M
NOI $140,784 @ 7.0% cap · market cap 5.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
3,333
Businesses Nearby
Explore this area
Business Placement
Demographics for 33040, FL
35,958
Population
19,001
Households
1.9
Avg Household Size
44
Median Age
38%
College-Educated
92%
High-School Grad
17.7 sq mi
ZIP Area
2,032
Density / Sq Mi
$79,038
Median Household Income
$42,458
Median Earnings
$2,079
Median Rent
$766,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Mixed-use building with residential and commercial units and tall ceilings in an X Flood Zone location.
Where is this residential income property located?
The property is located at 402 Applerouth Ln Key West, FL.
What is the asking price?
The asking price for this property is $2,490,000.
What are key features of this property?
This property features: Mixed‑use property with both residential and commercial income units; Located just steps from Duval Street; Over 5,000 sq ft interior space
