Listing Agency: RE/MAX Real Estate Center d***@gmail.com Show Phone

Listed By: David Tatangelo · License #S29833 Show Phone

Source: Exprealty

Added: Aug 4 Changed: Aug 21 Last Checked: Aug 22 at 10:08AM

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Investment Insights

Based on property information with market context.

This 5-unit apartment property at 8 Highview Ave includes 3,597 square feet of building area on a 34, 848 sq. ft. lot. Two apartments have been refurbished, while the broader improvements include vinyl siding, replacement windows, updated electrical service with a common meter, and an architectural roof. The property is Lead Certified and compliant with hardwired fire-code requirements.

Off-street parking supports the residential layout. Its suburban Hope Valley setting and five-unit configuration provide an established multifamily asset with documented rental history and potential for future expansion, as stated in the property information.

Key Highlights

• 5‑unit apartment property with 3,597 square feet of building area
• Situated on a 34, 848 sq. ft. lot at 8 Highview Ave, Hope Valley, RI
• Two of five units have been completely refurbished

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

$37,862

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

4.55%

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%

$757,240 $757.2K

Cap Rate 7%

$540,886 $540.9K

Cap Rate 9%

$420,689 $420.7K

Market Conditions

NOI Build-Up for 3,597 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

$72.1K $20.04/SF

− Vacancy

−$3.2K −$0.90/SF

EGI

$68.8K $19.14/SF

− OpEx

−$31.0K −$8.61/SF

NOI

$37.9K $10.53/SF

Area

Washington County, RI

Vacancy

4.50%

Lease Rate

$20.04 /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%

$757,240

Cap Rate 7%

$540,886

Cap Rate 9%

$420,689

Alternative Uses

Best Use

Apartment 5plus

$540.9K

$473.3K – $631.0K (±1% cap)

NOI $37,862 @ 7.0% cap · market cap 4.55%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$718.7K

$628.9K – $838.5K (±1% cap)

NOI $50,308 @ 7.0% cap · market cap 6.04%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Apartment buildings

Suggested Use

Top Pick Building Supply Real Estate Agency HVAC Service Auto Repair Shop Electrical Service Hair Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

5

Residential units

Location Intelligence

Trade Area within ½ mile

36

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Apartment building - Lead-certified property with two refurbished units and updated building systems.

Where is this apartment building located?

The property is located at 8 Highview Ave Hope Valley, RI.

What is the asking price?

The asking price for this property is $833,000.

What are key features of this property?

This property features: 5‑unit apartment property with 3,597 square feet of building area; Situated on a 34, 848 sq. ft. lot at 8 Highview Ave, Hope Valley, RI; Two of five units have been completely refurbished