Three-Unit Deleaded
For Sale
$899,000
15 1/2 Palmer, Salem, MA 01970
Occupied Salem property with shared outdoor space, covered porches, laundry, and parking for all units.
Property Size3,968 SF
Days on Market23
Property Features for 15 1/2 Palmer
General Information
Standard status
Active
Size
3,968 SF
Total Parking Spaces
3
Property subtype
Investment
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$8,054
Amenities
coin-operated laundry area
covered rear porches
fenced in backyard
modern high efficiency Navien heating systems
Building Details
Building Size
3,968 SF
Year Built
1915
Buildings
1
Stories
3
Units
3
Tenancy
Multi
Listing Agency:
Little & Co., REALTORS
(978) 973-7277
Listed By:
Francesca Little
(978) 973-7277
Source:
Elliman
Added: Jul 30
Changed: Aug 13
Last Checked: Aug 21 at 7:13AM
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 Little & Co., REALTORS
Investment Insights
Based on property information with market context.
Located at 15 1/2 Palmer in Salem, this deleaded triplex was built in 1915 and contains three spacious two-bedroom units. The property is well maintained and includes modern high-efficiency Navien heating systems, a coin-operated laundry area, covered rear porches, and a fenced backyard for shared outdoor space. Parking is available for all three units.
The property is situated on a quiet side street near downtown Salem. It is currently occupied by long-term tenants, with the owner paying for heat and hot water while tenants are responsible for electric. Walk Score is 92, Bike Score is 64, and Transit Score is 38.
The property is situated on a quiet side street near downtown Salem. It is currently occupied by long-term tenants, with the owner paying for heat and hot water while tenants are responsible for electric. Walk Score is 92, Bike Score is 64, and Transit Score is 38.
Key Highlights
- Three (3) spacious two‑bedroom units
- Deleaded triplex built in 1915
- Modern high‑efficiency Navien heating systems
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
$66,846
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
7.44%
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%
$1,336,920
$1.3M
Cap Rate 7%
$954,943
$954.9K
Cap Rate 9%
$742,733
$742.7K
Market Conditions
NOI Build-Up for 3,968 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
$100.0K $25.20/SF
− Vacancy
−$4.5K −$1.13/SF
EGI
$95.5K $24.07/SF
− OpEx
−$28.6K −$7.22/SF
NOI
$66.8K $16.85/SF
Area
Essex County, MA
Vacancy
4.50%
Lease Rate
$25.20 /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%
$1,336,920
Cap Rate 7%
$954,943
Cap Rate 9%
$742,733
Alternative Uses
Best Use
Multifamily LT 5
$954.9K
$835.6K – $1.11M
NOI $66,846 @ 7.0% cap · market cap 7.44%
Second Best
Apartment 5plus
$862.0K
$754.2K – $1.01M
NOI $60,339 @ 7.0% cap · market cap 6.71%
Theoretical Best
Office A
$2.35M
$2.06M – $2.74M
NOI $164,433 @ 7.0% cap · market cap 18.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,589
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Occupied Salem property with shared outdoor space, covered porches, laundry, and parking for all units.
Where is this triplex located?
The property is located at 15 1/2 Palmer Salem, MA.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: Three (3) spacious two‑bedroom units; Deleaded triplex built in 1915; Modern high‑efficiency Navien heating systems
