Updated Two-Unit
For Sale
$1,150,000
Pending
38-40 Cherry St, Medford, MA 02155
Meticulously maintained duplex with updated interiors, recent mechanical improvements, and a heated walk-up attic for potential expansion.
Property Size2,630 SF
Days on Market32
Property Features for 38-40 Cherry St
General Information
Standard status
Pending
Size
2,630 SF
Total Parking Spaces
2
Property subtype
Multifamily
Taxes and HOA fees
Annual Taxes
$9,173
Building Details
Building Size
2,630 SF
Year Built
1920
Listing Agency:
Thompson Realty
(781) 307-7395
Listed By:
Jamie Thompson
Source:
Classifiedrealtygroup
Added: Jul 20
Changed: Aug 8
Last Checked: Jul 29 at 4:00AM
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 Thompson Realty
Investment Insights
Based on property information with market context.
Meticulously maintained two-family duplex featuring ongoing updates throughout both units. Recent improvements include refinished hardwood floors, updated paint, and updated kitchens and baths. Unit 2 has mini splits added in 2020, and 1st-floor windows have just been updated. The heated walk-up attic provides an opportunity to expand the 2nd-floor unit.
The property is a walk-up configuration with currently leased units. It includes utility and major system upgrades such as updated 200-amp electric service, boilers completed in the early 2000s, water heaters recently replaced, and a roof completed in 2008.
With both units under leases, the building is positioned for rental income while still offering a path for future owner-occupancy.
The property is a walk-up configuration with currently leased units. It includes utility and major system upgrades such as updated 200-amp electric service, boilers completed in the early 2000s, water heaters recently replaced, and a roof completed in 2008.
With both units under leases, the building is positioned for rental income while still offering a path for future owner-occupancy.
Key Highlights
- 1920 Medford 2‑family duplex with two leased units
- Recently refinished hardwood floors and updated paint throughout both units
- Updated kitchens and baths in both units
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
$55,652
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
4.84%
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%
$1,113,040
$1.1M
Cap Rate 7%
$795,029
$795.0K
Cap Rate 9%
$618,356
$618.4K
Market Conditions
NOI Build-Up for 2,630 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
$83.6K $31.80/SF
− Vacancy
−$4.1K −$1.57/SF
EGI
$79.5K $30.23/SF
− OpEx
−$23.9K −$9.07/SF
NOI
$55.7K $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%
$1,113,040
Cap Rate 7%
$795,029
Cap Rate 9%
$618,356
Alternative Uses
Best Use
Multifamily LT 5
$795.0K
$695.7K – $927.5K
NOI $55,652 @ 7.0% cap · market cap 4.84%
Second Best
Apartment 5plus
$747.5K
$654.1K – $872.1K
NOI $52,328 @ 7.0% cap · market cap 4.55%
Theoretical Best
Office A
$1.56M
$1.36M – $1.82M
NOI $108,987 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
743
Businesses Nearby
Explore this area
Business Placement
Demographics for 02155, MA
61,483
Population
25,893
Households
2.4
Avg Household Size
36
Median Age
58%
College-Educated
93%
High-School Grad
8.2 sq mi
ZIP Area
7,498
Density / Sq Mi
$118,403
Median Household Income
$60,825
Median Earnings
$2,483
Median Rent
$715,500
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 - Meticulously maintained duplex with updated interiors, recent mechanical improvements, and a heated walk-up attic for potential expansion.
Where is this duplex located?
The property is located at 38-40 Cherry St Medford, MA.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 1920 Medford 2‑family duplex with two leased units; Recently refinished hardwood floors and updated paint throughout both units; Updated kitchens and baths in both units
