24-Unit Garden-Style Apartment
For Sale
Contact for pricing
640 SE 2nd Ave, Boynton Beach, FL 33435
Residential community with varied unit layouts, a separate CBS structure, and recent property improvements.
Property Size17,726 SF
Price / SF$326.92
Days on Market153
Property Features for 640 SE 2nd Ave
General Information
Standard status
Active
Size
17,726 SF
Class
B
Total Parking Spaces
36
Property subtype
Multifamily
Zoning
R3—R3 MULTI FAMILY, 11 DU/AC (08-BOYNTON BEACH)
Occupancy
100%
Investment Type
Value Add
Net Operating Income
$359,424
Property Condition
Severity
Repairs Needed
Evidence
Light Value Add
Units
Unit Mix
20 x 1BR/1BA, 4 x 2BR/2BA
Multifamily Units
24
Building Details
Year Built
1967
Buildings
2
Stories
2
Units
24
Construction
garden-style
Listing Agency:
ONE Commercial Real Estate
(305) 666-0562
Listed By:
Alexis Shapiro · License #3346131
Source:
Crexi
Added: Apr 3
Changed: Aug 30
Last Checked: Jul 21 at 3:45PM
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 ONE Commercial Real Estate
Investment Insights
Based on property information with market context.
The Palms is a 24-unit garden-style apartment community with a mix of 20 1BR/1BA residences and 4 2BR/2BA residences. A separate CBS building offers potential for conversion to storage or additional unit(s). Recent improvements include a new roof installed in 2024 and hurricane impact doors.
The property is located at 640 SE 2nd Ave in Boynton Beach, Florida, with walkable access to the beach, Boynton Harbor Marina, and nearby restaurants. Downtown Delray Beach and West Palm Beach are also in close proximity, providing access to established coastal destinations and surrounding amenities.
The property is located at 640 SE 2nd Ave in Boynton Beach, Florida, with walkable access to the beach, Boynton Harbor Marina, and nearby restaurants. Downtown Delray Beach and West Palm Beach are also in close proximity, providing access to established coastal destinations and surrounding amenities.
Key Highlights
- 24‑unit garden‑style apartment community
- Unit mix includes 20 1BR/1BA and 4 2BR/2BA residences
- Separate CBS building can be converted to storage or additional unit(s)
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
$272,614
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
4.70%
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%
$5,452,280
$5.5M
Cap Rate 7%
$3,894,486
$3.9M
Cap Rate 9%
$3,029,044
$3.0M
Market Conditions
NOI Build-Up for 17,726 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
$519.0K $29.28/SF
− Vacancy
−$23.4K −$1.32/SF
EGI
$495.7K $27.96/SF
− OpEx
−$223.0K −$12.58/SF
NOI
$272.6K $15.38/SF
Area
Palm Beach County, FL
Vacancy
4.50%
Lease Rate
$29.28 /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%
$5,452,280
Cap Rate 7%
$3,894,486
Cap Rate 9%
$3,029,044
Alternative Uses
Best Use
Apartment 5plus
$3.89M
$3.41M – $4.54M
NOI $272,614 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.48M
$10.92M – $14.56M
NOI $873,855 @ 7.0% cap · market cap 15.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
24
Residential units
Location Intelligence
Trade Area within ½ mile
1,334
Businesses Nearby
Explore this area
Business Placement
Demographics for 33435, FL
37,318
Population
20,058
Households
1.9
Avg Household Size
45
Median Age
32%
College-Educated
85%
High-School Grad
6.5 sq mi
ZIP Area
5,741
Density / Sq Mi
$66,612
Median Household Income
$35,488
Median Earnings
$1,846
Median Rent
$306,900
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 - Residential community with varied unit layouts, a separate CBS structure, and recent property improvements.
Where is this apartment building located?
The property is located at 640 SE 2nd Ave Boynton Beach, FL.
What is the asking price?
The asking price for this property is $5,795,000.
What are key features of this property?
This property features: 24‑unit garden‑style apartment community; Unit mix includes 20 1BR/1BA and 4 2BR/2BA residences; Separate CBS building can be converted to storage or additional unit(s)
