Building Details

Year Built 1938

Stories 2

Listing Agency: KW Commercial Keller Williams Legacy Group t***@thetracyjonesteam.com Show Phone

Listed By: Tracy Jones · License #2022006975

Source: Crexi

Added: Mar 9 Changed: Aug 23 Last Checked: Aug 22 at 6:21PM

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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 KW Commercial Keller Williams Legacy Group

Investment Insights

Based on property information with market context.

This multi-unit property, located at 41 Railroad Street, New London, OH 44851, presents an income-producing investment opportunity. The property consists of five rental units, including two 1-bedroom apartments and three 2-bedroom apartments. The total property size is 1840 square feet. The property generates $2,850 per month in rental income. This property offers consistent income potential with a desirable rental mix. It is suitable for investors looking to add a performing asset to their portfolio or those entering the investment market, providing immediate rental income and long-term potential.

Key Highlights

• Income‑producing multi‑unit property.
• Generates $2,850 per month in rental income.
• Features a mix of two 1‑bedroom and three 2‑bedroom apartments.

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

$14,859

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

4.50%

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%

$297,180 $297.2K

Cap Rate 7%

$212,271 $212.3K

Cap Rate 9%

$165,100 $165.1K

Market Conditions

NOI Build-Up for 1,840 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

$29.4K $15.96/SF

− Vacancy

−$2.3K −$1.28/SF

EGI

$27.0K $14.68/SF

− OpEx

−$12.2K −$6.61/SF

NOI

$14.9K $8.08/SF

Area

Huron County, OH

Vacancy

8.00%

Lease Rate

$15.96 /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%

$297,180

Cap Rate 7%

$212,271

Cap Rate 9%

$165,100

Alternative Uses

Best Use

Apartment 5plus

$212.3K

$185.7K – $247.7K (±1% cap)

NOI $14,859 @ 7.0% cap · market cap 4.50%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$382.4K

$334.6K – $446.2K (±1% cap)

NOI $26,770 @ 7.0% cap · market cap 8.11%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Apartment buildings

Suggested Use

Top Pick Real Estate Agency Building Supply Restaurant Big Box & Wholesale Store Storage Facility Dental Office

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

172

Businesses Nearby

Explore this area Business Placement

Demographics for 44851, OH

5,303

Population

2,238

Households

2.4

Avg Household Size

44

Median Age

12%

College-Educated

87%

High-School Grad

76.1 sq mi

ZIP Area

70

Density / Sq Mi

$62,458

Median Household Income

$41,687

Median Earnings

$831

Median Rent

$154,900

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Apartment building - Multi-unit property with five apartments, generating $2,850 monthly income.

Where is this apartment building located?

The property is located at 41 Railroad Street New London, OH.

What is the asking price?

The asking price for this property is $329,900.

What are key features of this property?

This property features: Income‑producing multi‑unit property.; Generates $2,850 per month in rental income.; Features a mix of two 1‑bedroom and three 2‑bedroom apartments.