Renovated Five-Unit Apartment
For Sale
$1,000,000
22 Florence St, Worcester, MA 01610
Recently improved multifamily property with full occupancy and separately metered tenant utilities.
Property Size3,254 SF
Days on Market10
Property Features for 22 Florence St
General Information
Standard status
Active
Size
3,254 SF
Property subtype
Multifamily
Taxes and HOA fees
Annual Taxes
$7,635
Building Details
Building Size
3,254 SF
Year Built
1890
Listing Agency:
Horvath & Tremblay
Listed By:
Ethan Lazar · License #9582013
Source:
Classifiedrealtygroup
Added: Aug 12
Changed: Aug 15
Last Checked: Aug 20 at 4:41AM
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 Horvath & Tremblay
Investment Insights
Based on property information with market context.
This five-unit apartment building includes five 2-bedroom, 1-bathroom residences, with 3,254 square feet of gross living area within 5,526 square feet of gross area. Each unit has undergone recent improvements, including new kitchens, flooring, and bathrooms. Several apartments also received mini-split air conditioning systems. The building was constructed in 1890 and includes on-street parking on its 0.16-acre parcel.
Located at 22 Florence St in Worcester’s Vernon Hill neighborhood, the property is positioned near Clark University, downtown Worcester, neighborhood retail corridors, and surrounding residential areas. All five apartments are occupied. Heat, hot water, and electricity are separately metered and paid directly by tenants, while ownership is responsible for domestic water and sewer. The property is offered at an 8.34% cap rate.
Located at 22 Florence St in Worcester’s Vernon Hill neighborhood, the property is positioned near Clark University, downtown Worcester, neighborhood retail corridors, and surrounding residential areas. All five apartments are occupied. Heat, hot water, and electricity are separately metered and paid directly by tenants, while ownership is responsible for domestic water and sewer. The property is offered at an 8.34% cap rate.
Key Highlights
- Five 2‑bedroom/1‑bathroom units
- 3,254 square feet of gross living area within 5,526 square feet of gross area
- 0.16‑acre parcel with on‑street parking
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
$43,866
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
4.39%
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%
$877,320
$877.3K
Cap Rate 7%
$626,657
$626.7K
Cap Rate 9%
$487,400
$487.4K
Market Conditions
NOI Build-Up for 3,254 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
$84.0K $25.80/SF
− Vacancy
−$4.2K −$1.29/SF
EGI
$79.8K $24.51/SF
− OpEx
−$35.9K −$11.03/SF
NOI
$43.9K $13.48/SF
Area
Worcester, MA
Vacancy
5.00%
Lease Rate
$25.80 /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%
$877,320
Cap Rate 7%
$626,657
Cap Rate 9%
$487,400
Alternative Uses
Best Use
Apartment 5plus
$626.7K
$548.3K – $731.1K
NOI $43,866 @ 7.0% cap · market cap 4.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$950.4K – $1.27M
NOI $76,028 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,835
Businesses Nearby
Explore this area
Business Placement
Demographics for 01610, MA
28,717
Population
10,263
Households
2.8
Avg Household Size
28
Median Age
18%
College-Educated
74%
High-School Grad
2.1 sq mi
ZIP Area
13,675
Density / Sq Mi
$43,757
Median Household Income
$22,978
Median Earnings
$1,339
Median Rent
$279,100
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?
Apartment building - Recently improved multifamily property with full occupancy and separately metered tenant utilities.
Where is this apartment building located?
The property is located at 22 Florence St Worcester, MA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Five 2‑bedroom/1‑bathroom units; 3,254 square feet of gross living area within 5,526 square feet of gross area; 0.16‑acre parcel with on‑street parking
