Ground-Floor Creative
For Sale
$620,000
601 W Rosemary Street Unit 107, Chapel Hill, NC 27516
Street-facing condominium with flexible use potential, shared amenities, and dedicated underground garage parking.
Property Size1,531 SF
Price / SF$404.96
Days on Market67
Property Features for 601 W Rosemary Street Unit 107
General Information
Standard status
Active
Size
1,531 SF
Net Rentable
1,722 SF
Property subtype
Retail
Additional Details
Floor
Ground
Amenities
concierge
fitness facility
media room
sky lounge
Building Details
Building Size
1,531 SF
Year Built
2008
Listing Agency:
Maverick Partners
(919) 672-0479
Listed By:
Daniel Robinson
Source:
Maverickpartners
Added: Jun 25
Changed: Aug 30
Last Checked: Aug 30 at 2:37PM
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 Maverick Partners
Investment Insights
Based on property information with market context.
This ground-level condominium provides 1,722 rentable square feet and 1,531 USF within a creative-oriented commercial setting. The space is currently configured for photography studio and gallery use, with a kitchenette whose appliances convey. Its broad range of allowable uses supports consideration for office or retail occupancy, subject to applicable requirements.
The property fronts W Rosemary Street near the Chapel Hill and Carrboro dividing line. Ownership includes access to a concierge, fitness facility, media room, and sky lounge within the building. Dedicated parking in the underground garage conveys with the unit. Constructed in 2008, the property also offers a WalkScore of 86.
The property fronts W Rosemary Street near the Chapel Hill and Carrboro dividing line. Ownership includes access to a concierge, fitness facility, media room, and sky lounge within the building. Dedicated parking in the underground garage conveys with the unit. Constructed in 2008, the property also offers a WalkScore of 86.
Key Highlights
- 1,722 RSF ground‑floor condominium with 1,531 USF
- Currently configured as a photography studio and gallery
- Broad range of allowable uses, including office or retail conversion potential
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
$23,645
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
3.81%
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%
$472,900
$472.9K
Cap Rate 7%
$337,786
$337.8K
Cap Rate 9%
$262,722
$262.7K
Market Conditions
NOI Build-Up for 1,531 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
$38.2K $24.96/SF
− Vacancy
−$6.7K −$4.37/SF
EGI
$31.5K $20.59/SF
− OpEx
−$7.9K −$5.15/SF
NOI
$23.6K $15.44/SF
Area
Orange County, NC
Vacancy
17.50%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
25.00%
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%
$472,900
Cap Rate 7%
$337,786
Cap Rate 9%
$262,722
Alternative Uses
Best Use
Office B
$337.8K
$295.6K – $394.1K
NOI $23,645 @ 7.0% cap · market cap 3.81%
Second Best
Retail
$254.9K
$223.1K – $297.4K
NOI $17,844 @ 7.0% cap · market cap 2.88%
Theoretical Best
Office A
$494.4K
$432.6K – $576.8K
NOI $34,606 @ 7.0% cap · market cap 5.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,909
Businesses Nearby
Explore this area
Business Placement
Demographics for 27516, NC
45,841
Population
18,684
Households
2.5
Avg Household Size
35
Median Age
72%
College-Educated
96%
High-School Grad
93.5 sq mi
ZIP Area
490
Density / Sq Mi
$100,788
Median Household Income
$48,638
Median Earnings
$1,446
Median Rent
$508,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Creative space - Street-facing condominium with flexible use potential, shared amenities, and dedicated underground garage parking.
Where is this creative space located?
The property is located at 601 W Rosemary Street Unit 107 Chapel Hill, NC.
What is the asking price?
The asking price for this property is $620,000.
What are key features of this property?
This property features: 1,722 RSF ground‑floor condominium with 1,531 USF; Currently configured as a photography studio and gallery; Broad range of allowable uses, including office or retail conversion potential
