Three-Unit Property with Recent
For Sale
$719,900
1260 Grafton Street, Worcester, MA 01604
Multifamily property with two vacant residential units and a flexible third suite for residential or office use.
Property Size3,800 SF
Price / SF$189.45
Days on Market161
Property Features for 1260 Grafton Street
General Information
Standard status
Active
Size
3,800 SF
Total Parking Spaces
7
Property subtype
Multi-family / 3 Family - 3 Units Up/Down
Zoning
RL-7
Net Operating Income
$15,000
Taxes and HOA fees
Annual Taxes
$5,330
Amenities
No
Range, Refrigerator
3.0
Full, Sump Pump, Concrete Floor, Slab
3
3.00
Building Details
Year Built
1900
Listing Agency:
George Russell Realty, LLC
(508) 799-9997
Listed By:
George Russell · License #134064
(508) 799-9997
Source:
Compass
Added: Mar 23
Changed: Aug 29
Last Checked: Aug 29 at 7:57PM
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 George Russell Realty, LLC
Investment Insights
Based on property information with market context.
This three-unit multifamily property contains 3,800 square feet on a recently subdivided lot. Two residential units offer three bedrooms each and are scheduled for delivery vacant following recent cleanup. The third unit is configured as a nail salon with a full bathroom and may support conversion to residential or office use. Its current lease expires this year, with the tenant open to a longer-term arrangement.
Property improvements include a recent roof, insulation, and replaced windows. The site provides at least 7 parking spaces, and lead documents are in hand. RL-7 zoning applies to the property, which was built in 1900.
Property improvements include a recent roof, insulation, and replaced windows. The site provides at least 7 parking spaces, and lead documents are in hand. RL-7 zoning applies to the property, which was built in 1900.
Key Highlights
- Three‑unit multifamily property with 3,800 square feet
- Two 3 BR residential units to be delivered vacant
- Third unit includes a nail salon layout and full bathroom
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
$55,804
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
7.75%
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%
$1,116,080
$1.1M
Cap Rate 7%
$797,200
$797.2K
Cap Rate 9%
$620,044
$620.0K
Market Conditions
NOI Build-Up for 3,800 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
$84.4K $22.20/SF
− Vacancy
−$4.6K −$1.22/SF
EGI
$79.7K $20.98/SF
− OpEx
−$23.9K −$6.29/SF
NOI
$55.8K $14.69/SF
Area
Worcester, MA
Vacancy
5.50%
Lease Rate
$22.20 /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%
$1,116,080
Cap Rate 7%
$797,200
Cap Rate 9%
$620,044
Alternative Uses
Best Use
Multifamily LT 5
$797.2K
$697.6K – $930.1K
NOI $55,804 @ 7.0% cap · market cap 7.75%
Second Best
Apartment 5plus
$731.8K
$640.3K – $853.8K
NOI $51,226 @ 7.0% cap · market cap 7.12%
Theoretical Best
Office A
$1.27M
$1.11M – $1.48M
NOI $88,785 @ 7.0% cap · market cap 12.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
400
Businesses Nearby
Explore this area
Business Placement
Demographics for 01604, MA
41,301
Population
18,166
Households
2.3
Avg Household Size
37
Median Age
31%
College-Educated
86%
High-School Grad
6.6 sq mi
ZIP Area
6,258
Density / Sq Mi
$72,911
Median Household Income
$45,596
Median Earnings
$1,570
Median Rent
$321,900
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?
Triplex - Multifamily property with two vacant residential units and a flexible third suite for residential or office use.
Where is this triplex located?
The property is located at 1260 Grafton Street Worcester, MA.
What is the asking price?
The asking price for this property is $719,900.
What are key features of this property?
This property features: Three‑unit multifamily property with 3,800 square feet; Two 3 BR residential units to be delivered vacant; Third unit includes a nail salon layout and full bathroom
