Updated Four-Unit
For Sale
$880,000
506 N Lancaster Ave, Dallas, TX 75203
Renovated income property with a flexible mix of one- and two-bedroom residences near Bishop Arts District and Downtown Dallas.
Property Size3,744 SF
Price / SF$235.04
Days on Market116
Property Features for 506 N Lancaster Ave
General Information
Standard status
Active
Size
3,744 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
4
Building Details
Year Built
1945
Buildings
1
Listing Agency:
Kimberly Adams Realty
(817) 983-5475
Listed By:
Tiffany Turincio · License #0722031
Source:
Christenberrygroup
Added: May 8
Changed: Aug 30
Last Checked: Aug 30 at 8:23PM
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 Kimberly Adams Realty
Investment Insights
Based on property information with market context.
This 3,744-square-foot quadplex was built in 1945 and updated in 2023. The unit mix includes two two-bedroom, one-bath residences and two one-bedroom, one-bath residences. Interior features include luxury vinyl plank flooring, open-plan layouts, kitchen islands, pantries, walk-in closets, dishwashers, ranges, refrigerators, and tankless water heaters. Individual conveniences include central air, private entrances, balconies, and covered patio or porch areas.
The property is located at 506 North Lancaster Avenue in Dallas, within North Oak Cliff and near Bishop Arts District and Downtown Dallas. Lake Cliff Park and other nearby parks provide access to outdoor recreation, while surrounding dining, entertainment, cultural attractions, and Downtown employment centers are close by. Short-term rental and Airbnb eligibility is stated for the property, with a projected 12% cap rate. A survey is available through the transaction desk.
The property is located at 506 North Lancaster Avenue in Dallas, within North Oak Cliff and near Bishop Arts District and Downtown Dallas. Lake Cliff Park and other nearby parks provide access to outdoor recreation, while surrounding dining, entertainment, cultural attractions, and Downtown employment centers are close by. Short-term rental and Airbnb eligibility is stated for the property, with a projected 12% cap rate. A survey is available through the transaction desk.
Key Highlights
- 3,744‑square‑foot quadplex updated in 2023
- Four residences: two 2‑bedroom/1‑bath units and two 1‑bedroom/1‑bath units
- Located at 506 North Lancaster Avenue near Bishop Arts District and Downtown Dallas
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
$65,833
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
7.48%
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%
$1,316,660
$1.3M
Cap Rate 7%
$940,471
$940.5K
Cap Rate 9%
$731,478
$731.5K
Market Conditions
NOI Build-Up for 3,744 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
$104.7K $27.96/SF
− Vacancy
−$10.6K −$2.84/SF
EGI
$94.0K $25.12/SF
− OpEx
−$28.2K −$7.54/SF
NOI
$65.8K $17.58/SF
Area
Dallas, TX
Vacancy
10.16%
Lease Rate
$27.96 /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%
$1,316,660
Cap Rate 7%
$940,471
Cap Rate 9%
$731,478
Alternative Uses
Best Use
Multifamily LT 5
$940.5K
$822.9K – $1.10M
NOI $65,833 @ 7.0% cap · market cap 7.48%
Second Best
Apartment 5plus
$813.3K
$711.6K – $948.9K
NOI $56,931 @ 7.0% cap · market cap 6.47%
Theoretical Best
Office A
$4.49M
$3.93M – $5.24M
NOI $314,474 @ 7.0% cap · market cap 35.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
1,717
Businesses Nearby
Explore this area
Business Placement
Demographics for 75203, TX
14,710
Population
6,862
Households
2.1
Avg Household Size
33
Median Age
17%
College-Educated
65%
High-School Grad
4.8 sq mi
ZIP Area
3,065
Density / Sq Mi
$46,358
Median Household Income
$32,690
Median Earnings
$1,110
Median Rent
$125,000
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?
Quadplex - Renovated income property with a flexible mix of one- and two-bedroom residences near Bishop Arts District and Downtown Dallas.
Where is this quadplex located?
The property is located at 506 N Lancaster Ave Dallas, TX.
What is the asking price?
The asking price for this property is $880,000.
What are key features of this property?
This property features: 3,744‑square‑foot quadplex updated in 2023; Four residences: two 2‑bedroom/1‑bath units and two 1‑bedroom/1‑bath units; Located at 506 North Lancaster Avenue near Bishop Arts District and Downtown Dallas
