Leased Single-Family Income
For Sale
$175,000
421 Pearce Avenue, Wake Forest, NC 27587
Residential Income, Wake Forest, NC
Property Size1,482 SF
Lot Size0.28 Acres
Price / SF$118.08
Days on Market47
Property Features for 421 Pearce Avenue
General Information
Property type
Residential Multi Family
Property subtype
Single Family Residence
Zoning
UR
Bedrooms
3
Bathrooms
2
Full bathrooms
2
Rooms
Bedroom 3, Bathroom 1, Bathroom 2, Bedroom 1, Bedroom 2
Parking features
Open
Subdivision
Not in a Subdivision
Elementary school
Wake - Heritage Elementary
Middle school
Wake - Heritage Middle
High school
Wake - Wake Forest High School
Standard status
Active
APN
184119612589000 0036997
Size
1,482 SF
Lot size
0.28 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Lo1 Brookview Sub Bm2001-00333
Tax Annual Amount
1657
Legal Description
Lo1 Brookview Sub Bm2001-00333
Utilities
Sewer type
Public Sewer
Heating system
Space Heater
Cooling system
Window Unit(s)
Water source
Public
Building Details
Year built
1901
Floors in Building
1
Number of units
1
Flooring type
Wood
Building materials
Vinyl Siding
Roof type
Metal
Listing Agency:
Coldwell Banker Advantage · Coldwell Banker Real Estate
(919) 847-2222
Listed By:
Melissa Gordon
(919) 614-6878
Added: Jul 6
Changed: Aug 19
Last Checked: Aug 21 at 2:06AM
MLS# 10178234
Copyright © 2026 Doorify MLS. 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 offering includes a single-family home totaling 1,482 square feet, situated on a 0.28-acre lot. The property is currently tenant-occupied and is being sold AS-IS. For planning purposes, the home fronts Pearce Avenue and is positioned as an income-producing asset today, with the option for future redevelopment considerations consistent with its Urban Residential zoning designation.
While the broader transaction is described as part of an investment and/or redevelopment package offered alongside additional nearby properties, this specific listing reflects the single-family parcel at 421 Pearce Avenue. The zoning is UR (Urban Residential), and the location is characterized in the remarks as being in downtown Wake Forest, within a few blocks of the downtown district and nearby community amenities.
For buyers seeking an income-producing residential asset with redevelopment flexibility, this tenant-occupied home can fit investor portfolios where maintaining current occupancy is important, or it can serve as a future-focused hold-and-redevelop strategy aligned with UR zoning. The fronting street orientation and independent parcel configuration may also appeal to buyers evaluating options without relying on the adjacent parcels, subject to their due diligence and redevelopment plans.
While the broader transaction is described as part of an investment and/or redevelopment package offered alongside additional nearby properties, this specific listing reflects the single-family parcel at 421 Pearce Avenue. The zoning is UR (Urban Residential), and the location is characterized in the remarks as being in downtown Wake Forest, within a few blocks of the downtown district and nearby community amenities.
For buyers seeking an income-producing residential asset with redevelopment flexibility, this tenant-occupied home can fit investor portfolios where maintaining current occupancy is important, or it can serve as a future-focused hold-and-redevelop strategy aligned with UR zoning. The fronting street orientation and independent parcel configuration may also appeal to buyers evaluating options without relying on the adjacent parcels, subject to their due diligence and redevelopment plans.
Key Highlights
- Investment package offered with 425 Pearce Ave (MLS# 10142426) and 417 Pearce Ave (MLS# 10142424) for a combined $1,135,000 purchase price
- Three parcels totaling approx. 1.67 acres: two fully leased duplexes and one tenant‑occupied single‑family home for immediate rental income
- Single‑family home fronts Pearce Avenue and is currently leased; sold AS‑IS
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
$15,171
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
8.67%
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%
$303,420
$303.4K
Cap Rate 7%
$216,729
$216.7K
Cap Rate 9%
$168,567
$168.6K
Market Conditions
NOI Build-Up for 1,482 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
$29.3K $19.80/SF
− Vacancy
−$1.8K −$1.19/SF
EGI
$27.6K $18.61/SF
− OpEx
−$12.4K −$8.38/SF
NOI
$15.2K $10.24/SF
Area
Wake County, NC
Vacancy
6.00%
Lease Rate
$19.80 /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%
$303,420
Cap Rate 7%
$216,729
Cap Rate 9%
$168,567
Alternative Uses
Best Use
Apartment 5plus
$216.7K
$189.6K – $252.9K
NOI $15,171 @ 7.0% cap · market cap 8.67%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$423.1K
$370.3K – $493.7K
NOI $29,620 @ 7.0% cap · market cap 16.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
790
Businesses Nearby
Explore this area
Business Placement
Demographics for 27587, NC
76,647
Population
30,571
Households
2.5
Avg Household Size
40
Median Age
56%
College-Educated
96%
High-School Grad
105.1 sq mi
ZIP Area
729
Density / Sq Mi
$125,607
Median Household Income
$59,006
Median Earnings
$1,415
Median Rent
$452,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Single family property - Leased single-family home zoned UR, offered as-is for investors or owner-users seeking downtown redevelopment flexibility.
Where is this single family property located?
The property is located at 421 Pearce Avenue Wake Forest, NC.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Investment package offered with 425 Pearce Ave (MLS# 10142426) and 417 Pearce Ave (MLS# 10142424) for a combined $1,135,000 purchase price; Three parcels totaling approx. 1.67 acres: two fully leased duplexes and one tenant‑occupied single‑family home for immediate rental income; Single‑family home fronts Pearce Avenue and is currently leased; sold AS‑IS
