R8-Zoned Triplex
For Sale
$429,000
742 South State Street, Dover, DE 19901
Multifamily residential property within Dover city limits, offering a three-unit configuration for income-producing use.
Property Size1,580 SF
Price / SF$271.52
Days on Market163
Property Features for 742 South State Street
General Information
Standard status
Active
Size
1,580 SF
Property subtype
Multi-Family / Fee Simple
Zoning
R8
Additional Details
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$1,609
Amenities
No
No Pool
Above Grade, Below Grade
Building Details
Year Built
1916
Buildings
1
Listing Agency:
LESTER REALTY INC.
(302) 856-4000
Listed By:
Larry Thompson · License #RS-0023303
(302) 856-4000
Source:
Compass
Added: Mar 22
Changed: Aug 31
Last Checked: Aug 31 at 12:50AM
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 LESTER REALTY INC.
Investment Insights
Based on property information with market context.
This 1,580-square-foot triplex was built in 1916 and is positioned as an income-producing residential property. The building includes above-grade and below-grade areas, with no pool listed among the exterior features.
Located at 742 South State Street in Dover, Delaware, the property is within city limits and falls under R8 zoning. It is served by the Capital School District and located in Kent County. The three-unit configuration provides a defined multifamily format for a buyer evaluating residential income property.
Located at 742 South State Street in Dover, Delaware, the property is within city limits and falls under R8 zoning. It is served by the Capital School District and located in Kent County. The three-unit configuration provides a defined multifamily format for a buyer evaluating residential income property.
Key Highlights
- Triplex configuration with income‑producing residential use
- 1,580‑square‑foot property built in 1916
- R8 zoning designation
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
$17,118
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
3.99%
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%
$342,360
$342.4K
Cap Rate 7%
$244,543
$244.5K
Cap Rate 9%
$190,200
$190.2K
Market Conditions
NOI Build-Up for 1,580 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
$25.6K $16.20/SF
− Vacancy
−$1.1K −$0.72/SF
EGI
$24.5K $15.48/SF
− OpEx
−$7.3K −$4.64/SF
NOI
$17.1K $10.83/SF
Area
Kent County, DE
Vacancy
4.46%
Lease Rate
$16.20 /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%
$342,360
Cap Rate 7%
$244,543
Cap Rate 9%
$190,200
Alternative Uses
Best Use
Multifamily LT 5
$244.5K
$214.0K – $285.3K
NOI $17,118 @ 7.0% cap · market cap 3.99%
Second Best
Apartment 5plus
$225.7K
$197.5K – $263.4K
NOI $15,801 @ 7.0% cap · market cap 3.68%
Theoretical Best
Office A
$397.9K
$348.1K – $464.2K
NOI $27,850 @ 7.0% cap · market cap 6.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
2,775
Businesses Nearby
Explore this area
Business Placement
Demographics for 19901, DE
36,839
Population
15,443
Households
2.4
Avg Household Size
34
Median Age
27%
College-Educated
89%
High-School Grad
75.8 sq mi
ZIP Area
486
Density / Sq Mi
$63,891
Median Household Income
$33,069
Median Earnings
$1,353
Median Rent
$258,400
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?
Triplex - Multifamily residential property within Dover city limits, offering a three-unit configuration for income-producing use.
Where is this triplex located?
The property is located at 742 South State Street Dover, DE.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: Triplex configuration with income‑producing residential use; 1,580‑square‑foot property built in 1916; R8 zoning designation
