Historic Multifamily Investment
For Sale
$550,000
428 E Johnson Ave, Lake Wales, FL 33853
Two-story, six-unit property in Lake Wales, Florida.
Property Size4,408 SF
Price / SF$124.77
Days on Market269
Property Features for 428 E Johnson Ave
General Information
Standard status
Active
Size
4,408 SF
Property subtype
Multifamily
Building Details
Building Size
4,408 SF
Year Built
1928
Listing Agency:
Lee & Associates - Miami
(305) 484-4666
Listed By:
Michael Avendano · License #FL #SL3323947
(305) 484-4666
Source:
Lee-associates
Added: Nov 26, 2025
Changed: Aug 22
Last Checked: Aug 22 at 4:24AM
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 Lee & Associates - Miami
Investment Insights
Based on property information with market context.
Located at 428 E Johnson Ave, Lake Wales, FL 33853, this historic two-story multifamily property presents an investment opportunity. Constructed in 1928, the building spans 4,408 square feet and is situated on a 0.52-acre lot. The property features six units, each with one bedroom and one bathroom. Recent renovations have been initiated, offering value-add potential to maximize rental income. The property is located in Lake Wales, benefiting from proximity to local amenities and attractions. The area has a population of approximately 16,455 residents with a median age of 43.1 years. The location provides access to shopping centers, parks, and recreational facilities. The property is zoned R-1B and is close to the Historic Downtown District's shopping, dining, and cultural attractions. It is also near local amenities, parks, schools, and recreational facilities, making it ideal for investors seeking value-add opportunities.
Key Highlights
- Six spacious 1‑bedroom / 1‑bathroom units totaling 4,408 SF.
- Value‑add potential through further renovations to maximize rental income.
- Located in the heart of Lake Wales, close to historic downtown, shopping, dining, cultural attractions, parks, and schools.
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
$41,752
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
7.59%
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%
$835,040
$835.0K
Cap Rate 7%
$596,457
$596.5K
Cap Rate 9%
$463,911
$463.9K
Market Conditions
NOI Build-Up for 4,408 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
$80.9K $18.36/SF
− Vacancy
−$5.0K −$1.14/SF
EGI
$75.9K $17.22/SF
− OpEx
−$34.2K −$7.75/SF
NOI
$41.8K $9.47/SF
Area
Polk County, FL
Vacancy
6.20%
Lease Rate
$18.36 /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%
$835,040
Cap Rate 7%
$596,457
Cap Rate 9%
$463,911
Alternative Uses
Best Use
Apartment 5plus
$596.5K
$521.9K – $695.9K
NOI $41,752 @ 7.0% cap · market cap 7.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.06M
$926.9K – $1.24M
NOI $74,150 @ 7.0% cap · market cap 13.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
861
Businesses Nearby
Explore this area
Business Placement
Demographics for 33853, FL
12,404
Population
5,483
Households
2.3
Avg Household Size
38
Median Age
19%
College-Educated
85%
High-School Grad
8.7 sq mi
ZIP Area
1,426
Density / Sq Mi
$40,938
Median Household Income
$35,470
Median Earnings
$965
Median Rent
$198,100
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Two-story, six-unit property in Lake Wales, Florida.
Where is this apartment building located?
The property is located at 428 E Johnson Ave Lake Wales, FL.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Six spacious 1‑bedroom / 1‑bathroom units totaling 4,408 SF.; Value‑add potential through further renovations to maximize rental income.; Located in the heart of Lake Wales, close to historic downtown, shopping, dining, cultural attractions, parks, and schools.
