Duplex with Two 3BR Townhouse
For Sale
$725,000
722-724 North Gammon Road, Madison, WI 53717
Two townhouse-style duplex units each offer 3 bedrooms, 2 baths, main-level laundry, and a 2-car garage.
Property Size3,740 SF
Price / SF$193.85
Days on Market101
Property Features for 722-724 North Gammon Road
General Information
Standard status
Active
Size
3,740 SF
Property subtype
Multi Family / Duplex-side by side
Zoning
PD
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$13,187
Amenities
Full, Partially finished
Natural Gas
Forced air
Personal belongings.
Range/Oven. Refridgerator, Disposal, Dishwasher, Washer, Dryer, Garage Door Opener. Unit 722 includes kitchen island and hutch.
2
Vinyl, Wood
Building Details
Year Built
1994
Units
2
Listing Agency:
Compass
(608) 839-7163
Listed By:
LaDonna Steinert · License #111647-94
(608) 839-7163
Source:
Compass
Added: May 22
Changed: Aug 28
Last Checked: Aug 29 at 3:07PM
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 Compass
Investment Insights
Based on property information with market context.
This duplex includes two townhouse-style units, each designed with three bedrooms and two bathrooms. Each unit features main-level laundry and a two-car garage, and Unit 722 includes hardwood floors, a fireplace, stainless appliances, and an exposed lower level. The property also has a new roof and includes outdoor space with a cherry tree, grapevines, and rhubarb.
The property is located on N Gammon Road in Madison, providing convenient access to nearby dining and shopping as well as Madison’s west side amenities. Units are currently month-to-month.
With two separate residential units in place, the property is suited to ownership scenarios that value having rental income from one unit while occupying the other. UHP is included.
The property is located on N Gammon Road in Madison, providing convenient access to nearby dining and shopping as well as Madison’s west side amenities. Units are currently month-to-month.
With two separate residential units in place, the property is suited to ownership scenarios that value having rental income from one unit while occupying the other. UHP is included.
Key Highlights
- Duplex built in 1994 with two townhouse‑style units
- Each unit offers 3 bedrooms, 2 bathrooms, main‑level laundry, and a 2‑car garage
- Unit 722 features hardwood floors, a fireplace (FP), and stainless appliances
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
$49,504
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
6.83%
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%
$990,080
$990.1K
Cap Rate 7%
$707,200
$707.2K
Cap Rate 9%
$550,044
$550.0K
Market Conditions
NOI Build-Up for 3,740 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
$74.1K $19.80/SF
− Vacancy
−$3.3K −$0.89/SF
EGI
$70.7K $18.91/SF
− OpEx
−$21.2K −$5.67/SF
NOI
$49.5K $13.24/SF
Area
Madison, WI
Vacancy
4.50%
Lease Rate
$19.80 /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%
$990,080
Cap Rate 7%
$707,200
Cap Rate 9%
$550,044
Alternative Uses
Best Use
Multifamily LT 5
$707.2K
$618.8K – $825.1K
NOI $49,504 @ 7.0% cap · market cap 6.83%
Second Best
Apartment 5plus
$655.4K
$573.5K – $764.6K
NOI $45,876 @ 7.0% cap · market cap 6.33%
Theoretical Best
Office A
$1.09M
$956.0K – $1.27M
NOI $76,476 @ 7.0% cap · market cap 10.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
242
Businesses Nearby
Explore this area
Business Placement
Demographics for 53717, WI
12,798
Population
6,404
Households
2
Avg Household Size
40
Median Age
66%
College-Educated
96%
High-School Grad
3.6 sq mi
ZIP Area
3,555
Density / Sq Mi
$96,245
Median Household Income
$56,313
Median Earnings
$1,385
Median Rent
$404,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
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Frequently Asked Questions
What type of property is this?
Duplex - Two townhouse-style duplex units each offer 3 bedrooms, 2 baths, main-level laundry, and a 2-car garage.
Where is this duplex located?
The property is located at 722-724 North Gammon Road Madison, WI.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Duplex built in 1994 with two townhouse‑style units; Each unit offers 3 bedrooms, 2 bathrooms, main‑level laundry, and a 2‑car garage; Unit 722 features hardwood floors, a fireplace (FP), and stainless appliances
