Prime Ayer Commercial Redevelopment
For Sale
$1,250,000
1 Park Street, Ayer, MA 01432
Freestanding commercial property in downtown Ayer with redevelopment potential.
Property Size5,051 SF
Price / SF$247.48
Days on Market107
Property Features for 1 Park Street
General Information
Standard status
Active
Size
5,051 SF
Property subtype
Unassigned
Listing Agency:
KW Commercial
Listed By:
Duncan Chapman · License #REB16356
(978) 840-9000
Source:
Commercialcafe
Added: May 27
Changed: Sep 10
Last Checked: Sep 9 at 5:31AM
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 KW Commercial
Investment Insights
Based on property information with market context.
Located approximately 35 miles northwest of Boston in the Nashoba Valley region, this freestanding commercial property is positioned in downtown Ayer. The property benefits from downtown revitalization efforts and transit-oriented development initiatives. Previously occupied by a Santander Bank branch, the property features existing drive-thru infrastructure and is located steps from the Ayer commuter rail station along the Fitchburg Line. The site benefits from convenient access to Route 2 and Interstate 495, with a daily traffic count of over 10,000 vehicles per day. The 5,051 square foot property is suitable for a retail franchise, restaurant, office, medical practice, or financial institution. A prior restaurant conversion application had been filed with the Town and later withdrawn without prejudice. The property also presents a redevelopment opportunity for a multifamily project with 12 or more residential units, subject to approvals.
Key Highlights
- Prime downtown Ayer location, benefiting from revitalization and transit‑oriented development.
- Exceptional redevelopment potential for commercial or mixed‑use concepts, including multi‑family (12+ units, subject to approvals).
- Existing drive‑thru infrastructure from previous bank occupancy.
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
$72,597
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
5.81%
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%
$1,451,940
$1.5M
Cap Rate 7%
$1,037,100
$1.0M
Cap Rate 9%
$806,633
$806.6K
Market Conditions
NOI Build-Up for 5,051 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
$110.9K $21.96/SF
− Vacancy
−$7.2K −$1.43/SF
EGI
$103.7K $20.53/SF
− OpEx
−$31.1K −$6.16/SF
NOI
$72.6K $14.37/SF
Area
Middlesex County, MA
Vacancy
6.50%
Lease Rate
$21.96 /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%
$1,451,940
Cap Rate 7%
$1,037,100
Cap Rate 9%
$806,633
Alternative Uses
Best Use
Office B
$2.29M
$2.00M – $2.67M
NOI $160,270 @ 7.0% cap · market cap 12.82%
Second Best
Retail
$1.04M
$907.5K – $1.21M
NOI $72,597 @ 7.0% cap · market cap 5.81%
Theoretical Best
Office A
$2.99M
$2.62M – $3.49M
NOI $209,312 @ 7.0% cap · market cap 16.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
309
Businesses Nearby
Explore this area
Business Placement
Demographics for 01432, MA
8,221
Population
3,770
Households
2.2
Avg Household Size
43
Median Age
41%
College-Educated
91%
High-School Grad
8.5 sq mi
ZIP Area
967
Density / Sq Mi
$105,142
Median Household Income
$66,659
Median Earnings
$1,373
Median Rent
$419,800
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Retail property - Freestanding commercial property in downtown Ayer with redevelopment potential.
Where is this retail property located?
The property is located at 1 Park Street Ayer, MA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Prime downtown Ayer location, benefiting from revitalization and transit‑oriented development.; Exceptional redevelopment potential for commercial or mixed‑use concepts, including multi‑family (12+ units, subject to approvals).; Existing drive‑thru infrastructure from previous bank occupancy.
