Character Duplex with Two-Level
For Sale
$1,050,000
126-1/2 Federal Street, Salem, MA 01970
Well-maintained duplex with hardwood floors, granite/stone counters, and a two-level second unit plus off-street parking.
Property Size2,926 SF
Price / SF$358.85
Days on Market142
Property Features for 126-1/2 Federal Street
General Information
Standard status
Active
Size
2,926 SF
Total Parking Spaces
6
Property subtype
Multi-family
Additional Details
Multifamily Units
2
Building Details
Year Built
1880
Tenancy
Multi
Listing Agency:
J. Barrett & Company
Listed By:
Daniel Meegan
(617) 388-8500
Source:
Stevebremis
Added: May 7
Changed: Sep 24
Last Checked: Sep 22 at 3:35AM
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 J. Barrett & Company
Investment Insights
Based on property information with market context.
This beautifully maintained duplex offers character and flexible space across two units. Both units feature hardwood floors throughout, oversized windows, spacious layouts, and inviting living areas. Interiors include generous pantry storage, walk-in closets, stone and granite countertops, and updated electrical panels for added comfort and peace of mind. The second unit spans two levels with cathedral ceilings, wall AC, and a dedicated family room.
A full unfinished basement provides laundry and abundant storage. Outside, the home offers a private patio and porch suited for relaxing or entertaining. The property also includes 6 deeded off-street parking spaces.
The building was formerly a legal grandfathered 3-family, and the remarks note potential future conversion/ADU possibilities subject to buyer due diligence and city approvals. The property is described as minutes from downtown Salem, dining, shopping, and commuter rail.
A full unfinished basement provides laundry and abundant storage. Outside, the home offers a private patio and porch suited for relaxing or entertaining. The property also includes 6 deeded off-street parking spaces.
The building was formerly a legal grandfathered 3-family, and the remarks note potential future conversion/ADU possibilities subject to buyer due diligence and city approvals. The property is described as minutes from downtown Salem, dining, shopping, and commuter rail.
Key Highlights
- Built in 1880, beautifully maintained Salem duplex with character, space, and flexible living layouts
- Both units feature hardwood floors and oversized windows for abundant natural light
- Kitchens include stone and granite countertops, plus generous pantry storage and walk‑in closets
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
$49,292
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
4.69%
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%
$985,840
$985.8K
Cap Rate 7%
$704,171
$704.2K
Cap Rate 9%
$547,689
$547.7K
Market Conditions
NOI Build-Up for 2,926 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
$73.7K $25.20/SF
− Vacancy
−$3.3K −$1.13/SF
EGI
$70.4K $24.07/SF
− OpEx
−$21.1K −$7.22/SF
NOI
$49.3K $16.85/SF
Area
Essex County, MA
Vacancy
4.50%
Lease Rate
$25.20 /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%
$985,840
Cap Rate 7%
$704,171
Cap Rate 9%
$547,689
Alternative Uses
Best Use
Multifamily LT 5
$704.2K
$616.2K – $821.5K
NOI $49,292 @ 7.0% cap · market cap 4.69%
Second Best
Apartment 5plus
$635.6K
$556.2K – $741.6K
NOI $44,494 @ 7.0% cap · market cap 4.24%
Theoretical Best
Office A
$1.73M
$1.52M – $2.02M
NOI $121,253 @ 7.0% cap · market cap 11.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,355
Businesses Nearby
Explore this area
Business Placement
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
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 - Well-maintained duplex with hardwood floors, granite/stone counters, and a two-level second unit plus off-street parking.
Where is this duplex located?
The property is located at 126-1/2 Federal Street Salem, MA.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Built in 1880, beautifully maintained Salem duplex with character, space, and flexible living layouts; Both units feature hardwood floors and oversized windows for abundant natural light; Kitchens include stone and granite countertops, plus generous pantry storage and walk‑in closets
