Live-Work Property with Ground-Level
For Sale
Contact for pricing
804 Madison Street, Durham, NC 27701
Flexible downtown live-work residence with a ground-level ADU and zoning flexibility for office or rental uses.
Property Size2,450 SF
Price / SF$365.31
Days on Market63
Property Features for 804 Madison Street
General Information
Standard status
Active
Size
2,450 SF
Class
A
Property subtype
Mixed Use, Retail, Multifamily
Zoning
Downtown Design-Support 2 (DD-S2)
Additional Details
Business Included
Yes
Building Details
Year Built
2026
Stories
4
Listing Agency:
Maverick Partners
Listed By:
Jeffrey Goldman · License #276608
Source:
Crexi
Added: Jun 10
Changed: Aug 11
Last Checked: Aug 11 at 6:44AM
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 Maverick Partners
Investment Insights
Based on property information with market context.
Madison Row is a flexible downtown residence designed around everyday adaptability, with each home featuring a ground-level ADU. The one-bedroom apartment includes a private courtyard entrance, while the primary residence occupies floors two through four. The main home is laid out with three ensuite bedrooms and expansive windows intended to bring in natural light. A rooftop terrace adds an outdoor gathering space and overlooks the surrounding cityscape.
The property is offered for sale at 804 Madison Street in Durham, positioned in the heart of downtown while described as tucked into the Central Park neighborhood. Public remarks indicate it is adjacent to the Bullpen Social District and moments from the Geer Street Entertainment District. The immediate area is also described as close to the American Tobacco Campus, the historic Carolina Theatre, and the DBAP.
Under Downtown Design-Support 2 (DD-S2) zoning, the ground-level and main spaces are presented as capable of evolving for a range of living and operating scenarios, including an in-law suite, guest quarters, private office, creative studio, income-producing rental, or a storefront/workspace for a small business. This configuration may appeal to multi-generational households seeking separation and privacy, as well as remote professionals or operators looking for a live-work setup with an additional unit on site.
The property is offered for sale at 804 Madison Street in Durham, positioned in the heart of downtown while described as tucked into the Central Park neighborhood. Public remarks indicate it is adjacent to the Bullpen Social District and moments from the Geer Street Entertainment District. The immediate area is also described as close to the American Tobacco Campus, the historic Carolina Theatre, and the DBAP.
Under Downtown Design-Support 2 (DD-S2) zoning, the ground-level and main spaces are presented as capable of evolving for a range of living and operating scenarios, including an in-law suite, guest quarters, private office, creative studio, income-producing rental, or a storefront/workspace for a small business. This configuration may appeal to multi-generational households seeking separation and privacy, as well as remote professionals or operators looking for a live-work setup with an additional unit on site.
Key Highlights
- Year built 2026 for a new‑build downtown Durham residence
- Each residence includes a ground‑level ADU with a private courtyard entrance one‑bedroom apartment
- Downtown Design‑Support 2 (DD‑S2) zoning allows flexible use of the ADU (in‑law suite, guest quarters, office, studio, rental, or storefront/workspace)
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
$37,838
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
4.23%
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%
$756,760
$756.8K
Cap Rate 7%
$540,543
$540.5K
Cap Rate 9%
$420,422
$420.4K
Market Conditions
NOI Build-Up for 2,450 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
$61.2K $24.96/SF
− Vacancy
−$10.7K −$4.37/SF
EGI
$50.5K $20.59/SF
− OpEx
−$12.6K −$5.15/SF
NOI
$37.8K $15.44/SF
Area
Durham, NC
Vacancy
17.50%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
25.00%
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%
$756,760
Cap Rate 7%
$540,543
Cap Rate 9%
$420,422
Alternative Uses
Best Use
Office B
$540.5K
$473.0K – $630.6K
NOI $37,838 @ 7.0% cap · market cap 4.23%
Second Best
Mixed Use
$472.5K
$413.4K – $551.3K
NOI $33,075 @ 7.0% cap · market cap 3.70%
Theoretical Best
Office A
$791.1K
$692.2K – $923.0K
NOI $55,379 @ 7.0% cap · market cap 6.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,257
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Flexible downtown live-work residence with a ground-level ADU and zoning flexibility for office or rental uses.
Where is this multifamily property located?
The property is located at 804 Madison Street Durham, NC.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Year built 2026 for a new‑build downtown Durham residence; Each residence includes a ground‑level ADU with a private courtyard entrance one‑bedroom apartment; Downtown Design‑Support 2 (DD‑S2) zoning allows flexible use of the ADU (in‑law suite, guest quarters, office, studio, rental, or storefront/workspace)
