Three-Unit Residential
New
For Sale
$1,150,000
725 W Morgan Street, Raleigh, NC 27603
The property is configured with three residential units and rear gravel parking.
Property Size3,234 SF
Days on Market4
Property Features for 725 W Morgan Street
General Information
Standard status
Active
Size
3,234 SF
Property subtype
Multifamily Investment/Redevelopment Opportunity
Building Details
Building Size
3,234 SF
Year Built
1920
Listing Agency:
(919) 491-8722
Listed By:
Ryan Gaylord, CCIM, SIOR
(919) 491-8722
Source:
Naiglobal
Added: Aug 8
Changed: Aug 10
Last Checked: Aug 11 at 5:20AM
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 Ryan Gaylord, CCIM, SIOR
Investment Insights
Based on property information with market context.
Located at 725 W Morgan Street in Raleigh, this 1920 property is currently arranged as three residential units. The site includes gravel parking behind the building, with access provided through a perpetual 9' easement across the neighboring property.
The property is near Glenwood South, Boylan Heights, Downtown Raleigh, and Dorothea Dix Park. Its zoning supports office and residential mixed-use applications. An unused rear section of the site is also included, providing additional area for future development considerations.
The property is near Glenwood South, Boylan Heights, Downtown Raleigh, and Dorothea Dix Park. Its zoning supports office and residential mixed-use applications. An unused rear section of the site is also included, providing additional area for future development considerations.
Key Highlights
- Three residential units in the current configuration
- 1920 year built
- Rear gravel parking area
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
$42,689
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
3.71%
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%
$853,780
$853.8K
Cap Rate 7%
$609,843
$609.8K
Cap Rate 9%
$474,322
$474.3K
Market Conditions
NOI Build-Up for 3,234 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
$77.6K $24.00/SF
− Vacancy
−$9.3K −$2.88/SF
EGI
$68.3K $21.12/SF
− OpEx
−$25.6K −$7.92/SF
NOI
$42.7K $13.20/SF
Area
ZIP 27603
Vacancy
12.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$853,780
Cap Rate 7%
$609,843
Cap Rate 9%
$474,322
Alternative Uses
Best Use
Mixed Use
$609.8K
$533.6K – $711.5K
NOI $42,689 @ 7.0% cap · market cap 3.71%
Second Best
Multifamily LT 5
$496.7K
$434.6K – $579.5K
NOI $34,767 @ 7.0% cap · market cap 3.02%
Theoretical Best
Office A
$1.02M
$895.1K – $1.19M
NOI $71,607 @ 7.0% cap · market cap 6.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,388
Businesses Nearby
Explore this area
Business Placement
Demographics for 27603, NC
54,616
Population
24,030
Households
2.3
Avg Household Size
34
Median Age
48%
College-Educated
94%
High-School Grad
51.4 sq mi
ZIP Area
1,063
Density / Sq Mi
$87,939
Median Household Income
$51,856
Median Earnings
$1,496
Median Rent
$347,000
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Triplex - The property is configured with three residential units and rear gravel parking.
Where is this triplex located?
The property is located at 725 W Morgan Street Raleigh, NC.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Three residential units in the current configuration; 1920 year built; Rear gravel parking area
