Waltham Investment Property with Expansion
For Sale
$799,000
11 Derby St, Waltham, MA 02453
Income-producing property in Waltham with redevelopment and expansion possibilities.
Property Size1,901 SF
Days on Market119
Property Features for 11 Derby St
General Information
Standard status
Active
Size
1,901 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$8,033
Building Details
Building Size
1,901 SF
Year Built
1900
Stories
3
Units
2
Listing Agency:
(617) 974-8538
Listed By:
Lisa Lyons
(617) 974-8538
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 20 at 10:33AM
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 Lisa Lyons
Investment Insights
Based on property information with market context.
This property presents a builder and investor opportunity in the desirable South Side of Waltham. Currently configured as an income-producing investment property, it features two large 1-bedroom units. The property is located in an RB zoning district, offering Old Lot Opinion flexibility. This allows for a 1647 sq ft buildable footprint and reduced side-yard setback requirements, according to town guidelines. The existing two-family structure has potential for redevelopment, condo conversion, or expansion, including the possibility of an accessory dwelling unit (ADU), all subject to municipal approvals. The location is considered very bikeable with a bike score of 75 and a walker's paradise with a walk score of 90. Transit options are available, indicated by a transit score of 43.
Key Highlights
- Prime redevelopment opportunity in Waltham's desirable South Side.
- RB zoning with Old Lot Opinion flexibility allows for a 1647 sq ft buildable footprint.
- Expansion potential, including possible accessory dwelling unit (ADU), subject to approvals.
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
$40,226
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
5.03%
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%
$804,520
$804.5K
Cap Rate 7%
$574,657
$574.7K
Cap Rate 9%
$446,956
$447.0K
Market Conditions
NOI Build-Up for 1,901 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
$60.5K $31.80/SF
− Vacancy
−$3.0K −$1.57/SF
EGI
$57.5K $30.23/SF
− OpEx
−$17.2K −$9.07/SF
NOI
$40.2K $21.16/SF
Area
Middlesex County, MA
Vacancy
4.94%
Lease Rate
$31.80 /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%
$804,520
Cap Rate 7%
$574,657
Cap Rate 9%
$446,956
Alternative Uses
Best Use
Multifamily LT 5
$574.7K
$502.8K – $670.4K
NOI $40,226 @ 7.0% cap · market cap 5.03%
Second Best
Apartment 5plus
$540.3K
$472.8K – $630.4K
NOI $37,823 @ 7.0% cap · market cap 4.73%
Theoretical Best
Office A
$1.13M
$984.7K – $1.31M
NOI $78,777 @ 7.0% cap · market cap 9.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,020
Businesses Nearby
Explore this area
Business Placement
Demographics for 02453, MA
31,854
Population
13,163
Households
2.4
Avg Household Size
34
Median Age
59%
College-Educated
92%
High-School Grad
3.6 sq mi
ZIP Area
8,848
Density / Sq Mi
$114,029
Median Household Income
$58,036
Median Earnings
$2,063
Median Rent
$666,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Income-producing property in Waltham with redevelopment and expansion possibilities.
Where is this duplex located?
The property is located at 11 Derby St Waltham, MA.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Prime redevelopment opportunity in Waltham's desirable South Side.; RB zoning with Old Lot Opinion flexibility allows for a **1647 sq ft buildable footprint**.; Expansion potential, including possible accessory dwelling unit (ADU), subject to approvals.
