223 S 5th Ave, Wilmington 28401: Historic District Duplex Sold at $975K — Conversion Math

Property Summary

223 S 5th Avenue is a 122-year-old duplex in Wilmington's Historic District that sold on April 10, 2026, for $975,000 — a 7.1% reduction from its $1,050,000 listing price when it was actively marketed starting October 24, 2025. The property had previously listed at $710,000 in late 2023 and reduced to $697,000 before that listing was removed in May 2024. The gap between the $697,000 earlier cycle and the $975,000 closed sale — a ~40% escalation — is the central question for any investor evaluating this asset as a comparable or future acquisition.

Fast Facts

• Address: 223 S 5th Avenue, Wilmington, NC 28401
• Sale Price: $975,000 (closed April 10, 2026)
• Original Listing Price: $1,050,000 (listed October 24, 2025)
• Beds / Baths: 6 bed / 4 bath (2 units, each 3/2)
• Square Footage: 3,548 sq ft
• Lot Size: 3,049 sq ft (0.07 acres)
• Year Built: 1903
• Property Type: Duplex / Multi-family (2 units)
• Price Per Sq Ft: ~$275 (based on $975K sale price)
• HOA: None
• Sale Date: April 10, 2026
• MLS #: 100537963

What Stands Out

• Duplex structure with two self-contained 3-bed/2-bath units — this is the core investor thesis. Two legal units under one roof in a walkable downtown location create optionality for STR, LTR, house-hack, or hybrid strategies.
• Corner lot in the Historic District, minutes from the Riverwalk, dining, and entertainment corridors — high foot traffic positioning for short-term rental demand.
• Original architectural details intact: hardwood flooring, 9-foot ceilings, crown molding, and 10 fireplaces — period features that command premium nightly rates on platforms like Airbnb and VRBO.
• No HOA fees — eliminates a common friction point for investor-operators managing rental properties.
• Unfinished basement with dirt floor and crawl space foundation — a structural consideration that adds inspection complexity on a 122-year-old building.
• On-street parking only — a functional constraint for guests or tenants in a downtown location with limited public parking infrastructure.

Pricing Lens

At ~$275/sq ft (based on the confirmed $975,000 sale), the closed price represents a significant escalation from the property's own recent history. The 2023–2024 listing cycle priced the property at $196–$200/sq ft.

The nearby 317 S 3rd St — a 3,050 sq ft triplex built in 1901 — is currently listed at $1,024,999 to $1,100,000 ($336–$361/sq ft), providing a relevant but imperfect comparable. That property is a triplex with different unit configurations. The $975K closed price at 223 S 5th Ave sits below that per-square-foot range, though direct comparison is limited by the differing unit counts and property conditions.

Neighborhood & Market Context

Wilmington's Historic District benefits from sustained tourism traffic, the Riverwalk corridor, and a concentration of restaurants, galleries, and entertainment venues that drive short-term rental demand. The 28401 zip code encompasses downtown's densest walkable core.

The area has seen continued investment in mixed-use development and infrastructure, reinforcing property values for well-positioned residential assets. However, historic district designation also imposes renovation and exterior modification restrictions that can increase project costs and timelines for investor-operators.

Zillow's current estimated value for the property post-sale is $629,900 (range $529,000–$743,000), which sits substantially below the $975,000 closed price — a discrepancy that investors should evaluate carefully.

Short-Term Rental Regulatory Context

Wilmington's short-term rental ordinance (Ordinance #0509, amending Chapter 34 of the City Code) requires an annual short-term rental owner permit for each dwelling unit rented for stays up to 29 nights. Key requirements include:

• Minimum $500,000 liability insurance coverage
• Occupancy limits tied to zoning (generally 2 adults per bedroom plus 2 additional)
• At least 1 off-street parking space per bedroom — a potential challenge given this property's on-street-only parking
• A local manager within 25 miles available 24/7 for whole-house rentals
• No owner-occupancy mandate — the ordinance does not require owners to live on-site, though it distinguishes between homestays and whole-house rentals

On March 3, 2025, Wilmington City Council approved updates explicitly allowing owner-occupied short-term rentals after permit issuance. The regulations apply citywide, including the Historic District, with eligibility dependent on zoning. Investors should verify specific zoning compliance and confirm no additional restrictions apply.

Risks & Watch-Outs

• The property sold on April 10, 2026, and is off-market. Any investor interest would require approaching the new owner directly or waiting for a future listing.
• Building age (1903): A 122-year-old structure carries elevated risk for major systems — plumbing, electrical, foundation, and roof. The unfinished dirt-floor basement and crawl space foundation warrant specialist inspection.
• Flood risk is rated low (unlikely to flood in next 30 years), but wind risk is extreme — 99% probability of strong winds over 30 years. Insurance costs for a historic wood-frame duplex in a high-wind zone could materially affect operating margins.
• Historic District restrictions may limit exterior modifications, signage, and certain commercial-use conversions without approval.
• On-street parking only — no dedicated off-street parking could reduce STR competitiveness versus properties with private parking. Note that the STR ordinance requires at least 1 off-street space per bedroom, which could be a compliance barrier for this property.
• 7 days above 105°F projected this year — HVAC load on a 3,548 sq ft historic building with forced air could drive elevated utility costs.
• Zillow's post-sale estimate of $629,900 is significantly below the $975,000 sale price — a gap that may reflect Zillow's algorithmic limitations with historic multi-family properties but warrants attention.
• 2% wildfire risk over 30 years — low but noted.

Before You Buy

• Confirm the property's current ownership status via New Hanover County deed records following the April 10, 2026 closing at $975,000
• Obtain a structural inspection focused on foundation, subfloor integrity, and basement moisture given the dirt-floor crawl space
• Request full insurance quotes including windstorm coverage — historic wood-frame duplexes in coastal NC carry above-average premiums
• Confirm current zoning permits duplex rental use (both STR and LTR) under City of Wilmington and Historic District overlay rules
• Review Wilmington's short-term rental ordinance (Ordinance #0509) for permitting, parking, occupancy, and insurance requirements — particularly the off-street parking requirement given this property's street-only parking
• Assess electrical and plumbing system age — knob-and-tube wiring or galvanized plumbing in a 1903 structure could require full replacement
• Pull 12-month STR revenue comps for 3-bed downtown Wilmington units via AirDNA or comparable platforms to model dual-unit income potential
• Verify whether the 10 fireplaces are functional, decorative, or sealed — functional fireplaces require chimney inspection and may affect insurance
• Investigate the gap between Zillow's $629,900 estimate and the $975,000 sale price to assess whether the buyer paid a premium or the algorithm undervalues this property type