Updated Four-Unit
New
For Sale
$619,000
425 Vester St, Ferndale, MI 48220
Updated interiors, a balanced unit mix, and shared coin-operated laundry serve the property’s residential configuration.
Property Size2,773 SF
Days on Market4
Property Features for 425 Vester St
General Information
Standard status
Active
Size
2,773 SF
Property subtype
Investment
Units
Unit Mix
2 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$11,640
Amenities
coin-operated laundry
Building Details
Building Size
2,773 SF
Year Built
1916
Units
4
Listing Agency:
Keller Williams Legacy
Listed By:
Nick Jaafar · License #403947
(313) 228-3777
Source:
Elliman
Added: Sep 12
Changed: Sep 14
Last Checked: Sep 15 at 7:37AM
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 Keller Williams Legacy
Investment Insights
Based on property information with market context.
This four-unit multifamily property at 425 Vester St in Ferndale, MI, was built in 1916 and has undergone updates throughout. The configuration includes two upper-level apartments with 2 bedrooms and 1 full bathroom each, plus two lower-level apartments with 1 bedroom and 1 full bathroom each. Updated finishes are present across the units, and a coin-operated washer and dryer are available for tenant use.
The property is in Ferndale and records a bike score of 58, classified as Bikeable, along with a walk score of 57, classified as Somewhat Walkable. The four-unit layout and varied bedroom mix provide a clearly defined multifamily configuration.
The property is in Ferndale and records a bike score of 58, classified as Bikeable, along with a walk score of 57, classified as Somewhat Walkable. The four-unit layout and varied bedroom mix provide a clearly defined multifamily configuration.
Key Highlights
- Four‑unit quadplex with two 2‑bedroom units and two 1‑bedroom units
- Each apartment includes 1 full bathroom
- Updated interiors and finishes throughout the units
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
$36,704
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
5.93%
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%
$734,080
$734.1K
Cap Rate 7%
$524,343
$524.3K
Cap Rate 9%
$407,822
$407.8K
Market Conditions
NOI Build-Up for 2,773 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
$54.9K $19.80/SF
− Vacancy
−$2.5K −$0.89/SF
EGI
$52.4K $18.91/SF
− OpEx
−$15.7K −$5.67/SF
NOI
$36.7K $13.24/SF
Area
Oakland County, MI
Vacancy
4.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
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%
$734,080
Cap Rate 7%
$524,343
Cap Rate 9%
$407,822
Alternative Uses
Best Use
Multifamily LT 5
$524.3K
$458.8K – $611.7K
NOI $36,704 @ 7.0% cap · market cap 5.93%
Second Best
Apartment 5plus
$485.9K
$425.2K – $566.9K
NOI $34,014 @ 7.0% cap · market cap 5.49%
Theoretical Best
Specialty Retail
$598.1K
$523.4K – $697.8K
NOI $41,868 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
1,665
Businesses Nearby
Explore this area
Business Placement
Demographics for 48220, MI
21,564
Population
12,003
Households
1.8
Avg Household Size
37
Median Age
53%
College-Educated
96%
High-School Grad
4.4 sq mi
ZIP Area
4,901
Density / Sq Mi
$86,095
Median Household Income
$54,557
Median Earnings
$1,191
Median Rent
$229,700
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Quadplex - Updated interiors, a balanced unit mix, and shared coin-operated laundry serve the property’s residential configuration.
Where is this quadplex located?
The property is located at 425 Vester St Ferndale, MI.
What is the asking price?
The asking price for this property is $619,000.
What are key features of this property?
This property features: Four‑unit quadplex with two 2‑bedroom units and two 1‑bedroom units; Each apartment includes 1 full bathroom; Updated interiors and finishes throughout the units
