Five-Unit Downtown Apartment
For Sale
$1,159,999
Pending
503 N Osprey Ave, Sarasota, FL 34236
Five fully rented units on a downtown corner lot, with common area laundry and DTN zoning allowing weekly rentals.
Property Size2,958 SF
Days on Market48
Property Features for 503 N Osprey Ave
General Information
Standard status
Pending
Size
2,958 SF
Property subtype
Multi-Family
Zoning
DTN
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
5
Building Details
Year Built
1949
Tenancy
Multi
Listing Agency:
RE/MAX ALLIANCE GROUP
Listed By:
Patrick Ritchey · License #3028794
(941) 284-7287
Source:
Whitesandsfl
Added: Jul 18
Changed: Sep 2
Last Checked: Sep 1 at 9:59PM
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 RE/MAX ALLIANCE GROUP
Investment Insights
Based on property information with market context.
This five-unit apartment complex consists of three buildings on a downtown Sarasota corner lot. Building #1 includes two 1-bedroom/1-bath units. Building #2 includes two 2-bedroom/1-bath units. Building #3 is a cottage/studio. The property is fully rented under month-to-month annual agreements, and includes common area laundry as an amenity for tenants.
The property is located in DTN zoning. City zoning allows weekly rentals, and the offering is positioned as both an income-producing purchase and an opportunity to develop under DTN zoning. Public remarks indicate the property is a few blocks from Main Street with downtown restaurants, shops, and bars, and about two blocks from Sarasota City Park with tennis courts, a playground, and a dog park.
The seller is offering owner/seller financing to prospective buyers, with a 60% minimum down payment requirement and attractive financing terms. Minimum balloon options may be considered, and the seller will not enter a second position as a lender.
The property is located in DTN zoning. City zoning allows weekly rentals, and the offering is positioned as both an income-producing purchase and an opportunity to develop under DTN zoning. Public remarks indicate the property is a few blocks from Main Street with downtown restaurants, shops, and bars, and about two blocks from Sarasota City Park with tennis courts, a playground, and a dog park.
The seller is offering owner/seller financing to prospective buyers, with a 60% minimum down payment requirement and attractive financing terms. Minimum balloon options may be considered, and the seller will not enter a second position as a lender.
Key Highlights
- Five‑unit apartment complex built in 1949 on a downtown Sarasota corner lot
- Unit mix: two 1BR/1BA units in Building #1; two 2BR/1BA units in Building #2; one cottage/studio in Building #3
- All units are fully rented on month‑to‑month annual agreements
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
$35,791
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
3.09%
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%
$715,820
$715.8K
Cap Rate 7%
$511,300
$511.3K
Cap Rate 9%
$397,678
$397.7K
Market Conditions
NOI Build-Up for 2,958 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
$68.9K $23.28/SF
− Vacancy
−$3.8K −$1.28/SF
EGI
$65.1K $22.00/SF
− OpEx
−$29.3K −$9.90/SF
NOI
$35.8K $12.10/SF
Area
Manatee County, FL
Vacancy
5.50%
Lease Rate
$23.28 /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%
$715,820
Cap Rate 7%
$511,300
Cap Rate 9%
$397,678
Alternative Uses
Best Use
Apartment 5plus
$511.3K
$447.4K – $596.5K
NOI $35,791 @ 7.0% cap · market cap 3.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$869.9K
$761.1K – $1.01M
NOI $60,890 @ 7.0% cap · market cap 5.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
6,319
Businesses Nearby
Explore this area
Business Placement
Demographics for 34236, FL
14,083
Population
11,661
Households
1.2
Avg Household Size
66
Median Age
62%
College-Educated
96%
High-School Grad
3.6 sq mi
ZIP Area
3,912
Density / Sq Mi
$96,400
Median Household Income
$48,828
Median Earnings
$2,010
Median Rent
$917,100
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 - Five fully rented units on a downtown corner lot, with common area laundry and DTN zoning allowing weekly rentals.
Where is this apartment building located?
The property is located at 503 N Osprey Ave Sarasota, FL.
What is the asking price?
The asking price for this property is $1,159,999.
What are key features of this property?
This property features: Five‑unit apartment complex built in 1949 on a downtown Sarasota corner lot; Unit mix: two 1BR/1BA units in Building #1; two 2BR/1BA units in Building #2; one cottage/studio in Building #3; All units are fully rented on month‑to‑month annual agreements
