Three-Story Mixed-Use
For Sale
$2,290,000
13 Central St, Salem, MA 01970
Mixed-use property with a ground-floor restaurant and residential apartments on the second and third floors.
Property Size6,442 SF
Price / SF$355.48
Days on Market59
Property Features for 13 Central St
General Information
Standard status
Active
Size
6,442 SF
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$19,464
Building Details
Stories
3
Tenancy
Multi
Listing Agency:
Coldwell Banker Realty - Lynnfield
(978) 697-7855
Listed By:
Stephen Velonis · License #449539572
(978) 697-7855
Source:
Exprealty
Added: Jun 23
Changed: Aug 13
Last Checked: Aug 13 at 10:40AM
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 Coldwell Banker Realty - Lynnfield
Investment Insights
Based on property information with market context.
This three-story mixed-use building totals 6,442 SF and combines commercial and residential space under one roof. The first floor is currently operated as a restaurant, while the second and third floors are devoted to residential apartments, creating a straightforward vertical layout for multi-use occupancy. The property is described as being supported by long-term tenants and stable occupancy.
Located at 13 Central St in Salem, MA, the building is positioned in downtown Salem. Public remarks note that the site is marked by a historical marker connected to The London Coffee House, a colonial-era gathering place dating to 1698, and the property is presented as being in a highly visible, walkable downtown setting.
For buyers seeking a mixed-use ownership with both operating and residential components, this configuration can support continued use as a restaurant on the ground level with apartments above. The established restaurant presence and the presence of apartments on the upper floors offer a practical basis for an owner-operator or investment-focused acquisition, subject to due diligence on current leases and operating details.
Located at 13 Central St in Salem, MA, the building is positioned in downtown Salem. Public remarks note that the site is marked by a historical marker connected to The London Coffee House, a colonial-era gathering place dating to 1698, and the property is presented as being in a highly visible, walkable downtown setting.
For buyers seeking a mixed-use ownership with both operating and residential components, this configuration can support continued use as a restaurant on the ground level with apartments above. The established restaurant presence and the presence of apartments on the upper floors offer a practical basis for an owner-operator or investment-focused acquisition, subject to due diligence on current leases and operating details.
Key Highlights
- 6,442 SF three‑story mixed‑use building in downtown Salem with a ground‑floor restaurant and apartments on the 2nd and 3rd floors
- Restaurant on the 1st floor plus residential units on the 2nd and 3rd floors provides diversified income from multiple uses
- Long‑term tenants and stable occupancy with a strong, consistent rental history
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
$130,451
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
5.70%
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%
$2,609,020
$2.6M
Cap Rate 7%
$1,863,586
$1.9M
Cap Rate 9%
$1,449,456
$1.4M
Market Conditions
NOI Build-Up for 6,442 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
$231.9K $36.00/SF
− Vacancy
−$23.2K −$3.60/SF
EGI
$208.7K $32.40/SF
− OpEx
−$78.3K −$12.15/SF
NOI
$130.5K $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%
$2,609,020
Cap Rate 7%
$1,863,586
Cap Rate 9%
$1,449,456
Alternative Uses
Best Use
Mixed Use
$1.86M
$1.63M – $2.17M
NOI $130,451 @ 7.0% cap · market cap 5.70%
Second Best
Specialty Retail
$1.70M
$1.49M – $1.98M
NOI $119,075 @ 7.0% cap · market cap 5.20%
Theoretical Best
Office A
$3.81M
$3.34M – $4.45M
NOI $266,955 @ 7.0% cap · market cap 11.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,657
Businesses Nearby
2k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Valvoline Instant Oil Change
Shops & Services
2,198 visits/mo
0.5 miles
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 Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with a ground-floor restaurant and residential apartments on the second and third floors.
Where is this mixed-use property located?
The property is located at 13 Central St Salem, MA.
What is the asking price?
The asking price for this property is $2,290,000.
What are key features of this property?
This property features: 6,442 SF three‑story mixed‑use building in downtown Salem with a ground‑floor restaurant and apartments on the 2nd and 3rd floors; Restaurant on the 1st floor plus residential units on the 2nd and 3rd floors provides diversified income from multiple uses; Long‑term tenants and stable occupancy with a strong, consistent rental history
