2020 Princess Place Dr: $719K Triplex at $357/Sq Ft — Multiple Price Cuts, Still on Market

Property Summary

This is not a single-family home — it's a 1951-built triplex generating rental income from three separate 1-bed/1-bath units near downtown Wilmington and the Wrightsville Beach corridor. At $719,000 and listed since April 3, 2025, the listing raises a straightforward investor question: does the rental math work at this basis, or has the market already answered that question? The Community Business (CB) zoning and current tenant mix (short-, mid-, and long-term rentals) add flexibility but also regulatory complexity worth unpacking.

Fast Facts

• Address: 2020 Princess Place Dr, Wilmington, NC 28405
• List Price: $719,000 (reduced from original $792,000)
• Type: Triplex (3 units, each ~670–671 sq ft)
• Beds / Baths: 3 bed / 3 bath (one per unit)
• Total Living Area: 2,015 sq ft
• Lot Size: 4,792 sq ft (0.11 acres), corner lot, 50×99 ft
• Year Built: 1951
• Construction: Block/concrete, slab foundation, single story
• Price / Sq Ft: ~$357/sq ft (at current ask)
• HOA: None
• Original List Date: 4/3/2025 at $792,000
• Taxes: $1,315 (2024) / $1,763 (2025)
• Assessed Value: $151,200–$299,500 (2025 assessed at $299,500: land $162,000 + improvements $137,500)
• Zillow Zestimate: $756,500
• Parcel: R04815017011000 (New Hanover County)

What Stands Out

• Reported gross rent of $5,200/month ($62,400/year): Unit 1 at $1,600, Unit 2 at $1,850, Unit 3 at $1,750. If accurate, that implies a gross rent multiplier (GRM) of ~11.5 and a gross yield of ~8.7% before expenses.
• CB zoning allows mixed rental strategies: The listing states units are operating as short-, mid-, and long-term rentals. This is a notable flexibility advantage — but also a compliance question under Wilmington's evolving STR regulatory landscape.
• Tax assessment trails ask price significantly: The 2025 assessed value of $299,500 is less than half the $719,000 list price, suggesting a potential reassessment hit post-sale that would materially increase carrying costs.
• Corner lot with off-street parking for 3 vehicles: One space per unit is functional but tight for any STR guest expecting more.
• Multiple price reductions without a sale: The property was originally listed at $792,000 ($393/sq ft) on April 3, 2025, reduced to $780,000 in July 2025, then to $725,000 in September 2025, and relisted at the current $719,000 in December 2025 — a total reduction of $73,000 (9.2%). This signals either softening investor demand or an initial overpricing.
• Furnished or partially furnished units — listing notes indicate at least some units are furnished, though one source suggests Unit 3 may be unfurnished.

Pricing Lens

At $357/sq ft, this triplex carries a significant premium to typical 28405 residential pricing but trades at a discount to 28480 (Wrightsville Beach) where comps routinely exceed $500/sq ft. The real question is whether multi-family income properties in this corridor justify this per-foot basis.

Direct comp data for small multi-family in this submarket is limited. The table below frames the pricing gap:

The ~$357/sq ft ask is roughly 40–75% above typical single-family per-foot pricing in 28405, which is justifiable only if the income stream holds up. At a 6% cap rate (reasonable target for a stabilized Wilmington rental), the property would need to generate roughly $43,000 in NOI — meaning operating expenses would need to stay below $19,400/year on the reported $62,400 gross. That's a tight margin on a 74-year-old building.

Neighborhood & Market Context

Princess Place sits in the 28405 corridor between downtown Wilmington and the Wrightsville Beach causeway, a positioning that benefits from proximity to the Soda Pop District, Burnt Mill Creek, and the broader downtown employment and tourism base. The area draws demand from renters priced out of 28480 who still want beach-adjacent living.

Wilmington's STR regulatory environment is complex and still evolving. A 2022 court ruling (Schroeder v. City of Wilmington) invalidated the city's prior short-term rental owner permit and registration requirements under state law. However, the city proposed a November 2024 ordinance amendment (Ordinance #0509) to establish new STR regulations under Chapter 34 of the city code. STRs must still comply with all applicable zoning code standards, including dwelling-unit-per-lot, guest occupancy maximums, and density restrictions. CB-zoned properties may face different compliance standards than residentially zoned ones. Any buyer running STR income projections should verify current regulatory status directly with the city, as the legal landscape remains in flux.

Risks & Watch-Outs

• Building age (1951): A 74-year-old concrete block structure on a slab raises questions about electrical, plumbing, and roof condition. Major systems replacement costs are not confirmed in public records and would require inspection to estimate.
• Flood zone status not confirmed: Coastal NC location on a 0.11-acre lot near Burnt Mill Creek warrants a formal flood determination. Insurance costs could vary dramatically based on FEMA zone.
• Tax reassessment risk: New Hanover County conducts property revaluations on a four-year cycle, with the most recent in 2025. A sale at $719,000 versus a $299,500 assessment could result in a significantly higher assessed value at the next revaluation, materially increasing the annual tax bill from the current $1,763. The specific magnitude of any post-sale reassessment is not confirmed in public records.
• STR regulatory uncertainty: Following the Schroeder ruling, the city cannot enforce registration or permit caps, but zoning-based restrictions and the proposed 2024 ordinance may still affect operations. Current permit/license status for the units is not confirmed in public listing details.
• Extended time on market with price cuts: Originally listed at $792,000 in April 2025 and reduced multiple times to the current $719,000, the property's inability to attract a buyer at any price point suggests the investor buyer pool has not validated the asking price. Negotiating leverage likely favors buyers.
• Small lot, no expansion potential: At 0.11 acres, physical expansion or adding units is functionally impossible.

Before You Buy

• Request current leases or rental agreements for all three units and verify actual collected rent vs. listed rent
• Obtain a rent roll with occupancy history for the trailing 12–24 months
• Confirm STR compliance status for any unit operating as a short-term rental under current Wilmington zoning standards and any applicable city ordinances
• Order a FEMA flood zone determination and obtain insurance quotes reflecting actual zone classification
• Request capital expenditure history: roof age, HVAC, plumbing, and electrical updates on a 1951 structure
• Verify CB zoning compliance for the current rental mix and confirm any conditional use requirements
• Model post-sale tax reassessment — project annual taxes at the purchase price, not the current assessed value
• Confirm whether furniture and furnishings convey with the sale and at what condition
• Run an independent cap rate analysis using verified expenses, not pro-forma estimates