Value-Add Multifamily with Buildable
For Sale
$999,000
513 Charles Street Providence, Providence, RI 02904
Six-unit property with newer roof, windows, and rear parking on an additional buildable lot.
Property Size3,550 SF
Price / SF$281.41
Days on Market65
Property Features for 513 Charles Street Providence
General Information
Standard status
Active
Size
3,550 SF
Additional Details
Multifamily Units
6
Building Details
Year Built
1900
Tenancy
Multi
Listing Agency:
(508) 501-1443
Listed By:
Kim Goodby
(508) 501-1443
Source:
Milestonerealtyinc
Added: Jun 4
Changed: Jul 10
Last Checked: Jul 15 at 2:13PM
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 Kim Goodby
Investment Insights
Based on property information with market context.
Well-kept multifamily property arranged as a 6-unit building, noted as a legal 5-unit configuration, offering a value-add framework for an owner-operator or investor. The seller highlights several major capital items already completed, including a roof installed about two years ago, majority newer windows, multiple newer water heaters, foundation repairs, and vinyl siding. The interior is described as having a need for basic renovations, supporting additional improvements after acquisition.
Located in Providence’s Charles neighborhood at 513 Charles Street, the property is presented with ample rear parking. That parking area is on a separate, buildable lot, which the remarks identify as a potential path for future development beyond the existing multifamily asset.
The current operating setup is described as flexible, with month-to-month rents characterized as below-market in the offering materials. For buyers seeking both near-term rent optimization through interior refreshes and longer-horizon optionality tied to the additional buildable lot, the combination of already-addressed major systems and development-capable outdoor space provides multiple avenues to improve the property over time.
Located in Providence’s Charles neighborhood at 513 Charles Street, the property is presented with ample rear parking. That parking area is on a separate, buildable lot, which the remarks identify as a potential path for future development beyond the existing multifamily asset.
The current operating setup is described as flexible, with month-to-month rents characterized as below-market in the offering materials. For buyers seeking both near-term rent optimization through interior refreshes and longer-horizon optionality tied to the additional buildable lot, the combination of already-addressed major systems and development-capable outdoor space provides multiple avenues to improve the property over time.
Key Highlights
- Well‑kept Providence 6‑unit property (legal 5) on Charles Street, built in 1900
- Recent major updates include a 2‑year‑old roof, majority newer windows, and multiple newer water heaters
- Foundation repairs and vinyl siding reported as completed major capital improvements
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
$53,844
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
5.39%
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%
$1,076,880
$1.1M
Cap Rate 7%
$769,200
$769.2K
Cap Rate 9%
$598,267
$598.3K
Market Conditions
NOI Build-Up for 3,550 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
$104.4K $29.40/SF
− Vacancy
−$6.5K −$1.82/SF
EGI
$97.9K $27.58/SF
− OpEx
−$44.1K −$12.41/SF
NOI
$53.8K $15.17/SF
Area
Providence, RI
Vacancy
6.20%
Lease Rate
$29.40 /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%
$1,076,880
Cap Rate 7%
$769,200
Cap Rate 9%
$598,267
Alternative Uses
Best Use
Apartment 5plus
$769.2K
$673.1K – $897.4K
NOI $53,844 @ 7.0% cap · market cap 5.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.19M
$1.04M – $1.39M
NOI $83,137 @ 7.0% cap · market cap 8.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
678
Businesses Nearby
Explore this area
Business Placement
Demographics for 02904, RI
31,542
Population
14,483
Households
2.2
Avg Household Size
41
Median Age
32%
College-Educated
88%
High-School Grad
5.2 sq mi
ZIP Area
6,066
Density / Sq Mi
$64,637
Median Household Income
$47,040
Median Earnings
$1,217
Median Rent
$302,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Six-unit property with newer roof, windows, and rear parking on an additional buildable lot.
Where is this apartment building located?
The property is located at 513 Charles Street Providence Providence, RI.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: Well‑kept Providence 6‑unit property (legal 5) on Charles Street, built in 1900; Recent major updates include a 2‑year‑old roof, majority newer windows, and multiple newer water heaters; Foundation repairs and vinyl siding reported as completed major capital improvements
