Four-Unit Mixed-Use
New
For Sale
$950,000
122 Foster Street, Peabody, MA 01960
A commercial space and three two-bedroom apartments share one building.
Property Size3,591 SF
Price / SF$264.55
Days on Market5
Property Features for 122 Foster Street
General Information
Standard status
Active
Size
3,591 SF
Property subtype
4 Family - 4 Units Up/Down
Building Details
Year Built
1890
Listing Agency:
Horvath & Tremblay
(781) 776-4000
Listed By:
Stephen Girolamo · License #9552229
(978) 406-1789
Source:
Lockandkeyre
Added: Sep 29
Changed: Oct 3
Last Checked: Oct 2 at 10:54PM
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 Horvath & Tremblay
Investment Insights
Based on property information with market context.
The 3,591-square-foot building contains one commercial unit and three apartments, each with two bedrooms and one bathroom. It occupies a 0.14-acre parcel and dates to 1890. Three tandem parking spaces can accommodate six cars. Zoning is BN2.
In Peabody, the property connects to Route 114, Route 1, and Interstate 95/Route 128, with retail corridors and residential neighborhoods in the surrounding area. Tenants pay directly for gas heating, hot water, and separately metered electricity; the landlord pays for city water and sewer.
In Peabody, the property connects to Route 114, Route 1, and Interstate 95/Route 128, with retail corridors and residential neighborhoods in the surrounding area. Tenants pay directly for gas heating, hot water, and separately metered electricity; the landlord pays for city water and sewer.
Key Highlights
- Three apartments, each with 2 bedrooms and 1 bathroom, plus one commercial unit
- 3,591 square feet of gross living area
- 0.14‑acre parcel
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
$72,718
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
7.65%
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%
$1,454,360
$1.5M
Cap Rate 7%
$1,038,829
$1.0M
Cap Rate 9%
$807,978
$808.0K
Market Conditions
NOI Build-Up for 3,591 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
$129.3K $36.00/SF
− Vacancy
−$12.9K −$3.60/SF
EGI
$116.3K $32.40/SF
− OpEx
−$43.6K −$12.15/SF
NOI
$72.7K $20.25/SF
Area
Essex County, MA
Vacancy
10.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,454,360
Cap Rate 7%
$1,038,829
Cap Rate 9%
$807,978
Alternative Uses
Best Use
Mixed Use
$1.04M
$909.0K – $1.21M
NOI $72,718 @ 7.0% cap · market cap 7.65%
Second Best
Specialty Retail
$948.2K
$829.7K – $1.11M
NOI $66,377 @ 7.0% cap · market cap 6.99%
Theoretical Best
Office A
$2.13M
$1.86M – $2.48M
NOI $148,810 @ 7.0% cap · market cap 15.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,197
Businesses Nearby
Explore this area
Business Placement
Demographics for 01960, MA
54,155
Population
23,009
Households
2.4
Avg Household Size
47
Median Age
34%
College-Educated
91%
High-School Grad
16.0 sq mi
ZIP Area
3,385
Density / Sq Mi
$95,173
Median Household Income
$56,100
Median Earnings
$1,902
Median Rent
$566,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - A commercial space and three two-bedroom apartments share one building.
Where is this mixed-use property located?
The property is located at 122 Foster Street Peabody, MA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Three apartments, each with 2 bedrooms and 1 bathroom, plus one commercial unit; 3,591 square feet of gross living area; 0.14‑acre parcel
