Four-Unit Quadplex with
For Sale
$699,900
804 Lancaster St, Durham, NC 27701
Renovation-ready income property near Duke University's East Campus with separate utility metering and alley-accessible parking.
Property Size2,500 SF
Price / SF$279.96
Days on Market8
Property Features for 804 Lancaster St
General Information
Standard status
Active
Size
2,500 SF
Property subtype
Multi-Family
Property Condition
Severity
Repairs Needed
Evidence
fixer-upper
Units
Unit Mix
4 x 1BR/1BA
Multifamily Units
4
Additional Details
Utilities to Site
Yes
Building Details
Year Built
1920
Listing Agency:
Premier Advantage Realty Inc
(919) 528-5050
Listed By:
Wallace Peiffer · License #170317
Source:
Tcrnc
Added: Aug 22
Changed: Aug 29
Last Checked: Aug 25 at 5:33AM
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 Premier Advantage Realty Inc
Investment Insights
Based on property information with market context.
This 2,500-square-foot quadplex contains four one-bedroom, one-bath units and is positioned for renovation. The property has gas heat, gas water heaters, and four separate utility meters. A detached garage serves the rear of the site, while street parking and additional spaces reached through the alley provide parking options.
The property is in Downtown Durham, within walking distance of Duke University's East Campus and near Trinity Park. The sale is being conducted through a court-appointed Special Proceedings process and includes a 10-day upset bid period.
The property is in Downtown Durham, within walking distance of Duke University's East Campus and near Trinity Park. The sale is being conducted through a court-appointed Special Proceedings process and includes a 10-day upset bid period.
Key Highlights
- Four‑unit quadplex with 1 bedroom and 1 bath in each unit
- 2,500 square feet of property size
- Gas heat and gas water heaters
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
$21,467
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
3.07%
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%
$429,340
$429.3K
Cap Rate 7%
$306,671
$306.7K
Cap Rate 9%
$238,522
$238.5K
Market Conditions
NOI Build-Up for 2,500 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
$34.5K $13.80/SF
− Vacancy
−$3.8K −$1.53/SF
EGI
$30.7K $12.27/SF
− OpEx
−$9.2K −$3.68/SF
NOI
$21.5K $8.59/SF
Area
Durham, NC
Vacancy
11.11%
Lease Rate
$13.80 /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%
$429,340
Cap Rate 7%
$306,671
Cap Rate 9%
$238,522
Alternative Uses
Best Use
Multifamily LT 5
$306.7K
$268.3K – $357.8K
NOI $21,467 @ 7.0% cap · market cap 3.07%
Second Best
Apartment 5plus
$268.5K
$234.9K – $313.3K
NOI $18,795 @ 7.0% cap · market cap 2.69%
Theoretical Best
Office A
$807.3K
$706.4K – $941.8K
NOI $56,509 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,135
Businesses Nearby
Explore this area
Business Placement
Demographics for 27701, NC
25,208
Population
13,409
Households
1.9
Avg Household Size
34
Median Age
50%
College-Educated
85%
High-School Grad
5.2 sq mi
ZIP Area
4,848
Density / Sq Mi
$66,852
Median Household Income
$47,681
Median Earnings
$1,279
Median Rent
$457,600
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?
Quadplex - Renovation-ready income property near Duke University's East Campus with separate utility metering and alley-accessible parking.
Where is this quadplex located?
The property is located at 804 Lancaster St Durham, NC.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Four‑unit quadplex with 1 bedroom and 1 bath in each unit; 2,500 square feet of property size; Gas heat and gas water heaters
