Mixed-Use Property with Office
For Sale
$350,000
28 Worcester Rd, Sterling, MA 01564
Two residential units accompany a dedicated office area with street-level exposure and off-street parking.
Property Size2,500 SF
Price / SF$140
Days on Market47
Property Features for 28 Worcester Rd
General Information
Standard status
Active
Size
2,500 SF
Additional Details
Highway Access
Yes
Building Details
Year Built
1897
Listing Agency:
Lamacchia Realty, Inc.
Listed By:
The Balestracci Group
(508) 832-5324
Source:
Alpernandmesenbourg
Added: Aug 1
Changed: Sep 16
Last Checked: Sep 15 at 10:01PM
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 Lamacchia Realty, Inc.
Investment Insights
Based on property information with market context.
This mixed-use property at 28 Worcester Road combines two residential units with a separate professional office area. The building includes a front porch entry, street-level exposure for the office component, and off-street parking serving residents and clients. Constructed in 1897, the property is zoned C and offers a configuration that accommodates both residential occupancy and business use.
Located in Sterling, the property provides access to I-190 and regional destinations including Worcester and Leominster. Its combination of residential units, office space, parking, and route access creates a flexible setting for an owner-user or investment-oriented buyer.
Located in Sterling, the property provides access to I-190 and regional destinations including Worcester and Leominster. Its combination of residential units, office space, parking, and route access creates a flexible setting for an owner-user or investment-oriented buyer.
Key Highlights
- Two residential units plus a dedicated professional office area
- Street‑level office exposure on 28 Worcester Road
- Off‑street parking for residents and office users
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
$29,410
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
8.40%
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%
$588,200
$588.2K
Cap Rate 7%
$420,143
$420.1K
Cap Rate 9%
$326,778
$326.8K
Market Conditions
NOI Build-Up for 2,500 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
$54.9K $21.96/SF
− Vacancy
−$1.4K −$0.57/SF
EGI
$53.5K $21.39/SF
− OpEx
−$24.1K −$9.63/SF
NOI
$29.4K $11.76/SF
Area
Worcester County, MA
Vacancy
2.60%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
45.00%
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%
$588,200
Cap Rate 7%
$420,143
Cap Rate 9%
$326,778
Alternative Uses
Best Use
Office B
$650.9K
$569.5K – $759.4K
NOI $45,563 @ 7.0% cap · market cap 13.02%
Second Best
Multifamily LT 5
$482.8K
$422.4K – $563.2K
NOI $33,794 @ 7.0% cap · market cap 9.66%
Theoretical Best
Office A
$853.7K
$747.0K – $996.0K
NOI $59,760 @ 7.0% cap · market cap 17.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
41
Businesses Nearby
Explore this area
Business Placement
Demographics for 01564, MA
7,985
Population
3,298
Households
2.4
Avg Household Size
48
Median Age
53%
College-Educated
95%
High-School Grad
30.6 sq mi
ZIP Area
261
Density / Sq Mi
$136,027
Median Household Income
$78,506
Median Earnings
$1,606
Median Rent
$467,400
Median Home Value
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two residential units accompany a dedicated office area with street-level exposure and off-street parking.
Where is this mixed-use property located?
The property is located at 28 Worcester Rd Sterling, MA.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Two residential units plus a dedicated professional office area; Street‑level office exposure on 28 Worcester Road; Off‑street parking for residents and office users
