Mixed-Use Income Property with
For Sale
$780,000
166 Mechanic Street, Southbridge, MA 01550
Mixed-use building with updated residential units, a commercial storefront, and a large paved parking area.
Property Size5,733 SF
Price / SF$136.05
Days on Market85
Property Features for 166 Mechanic Street
General Information
Standard status
Active
Size
5,733 SF
Property subtype
Multi-family
Additional Details
Business Included
Yes
Highway Access
Yes
Multifamily Units
4
Building Details
Year Built
1900
Listing Agency:
Keller Williams Elite
(617) 970-6268
Listed By:
Eduardo Franco
(617) 731-4644
Source:
Hammondre
Added: Jun 1
Changed: Aug 23
Last Checked: Aug 23 at 5:28AM
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 Keller Williams Elite
Investment Insights
Based on property information with market context.
This mixed-use property includes a commercial storefront plus a substantial warehouse/workshop component totaling 14,500 square feet. The building features four fully updated residential units and also contains a climate-controlled, fully finished two-bedroom suite within a portion of the warehouse, with a full kitchen, full bath, and its own mini-split system. The upper floors include four two-bedroom apartments, along with a full top floor designated for additional storage rooms. A large paved parking lot is also included, described as roughly the size of a half football field.
The property is located close to Route 20, Route 169, and the Mass Pike. BikeScore is listed as 28 (Somewhat Bikeable) and walkScore is listed as 36 (Car-Dependent), which supports a practical, vehicle-oriented use.
Designed for flexible ownership and operation, the combination of residential income and retail frontage can support an owner-occupant or a manager-led setup, while the warehouse space and paved parking may appeal to tenants needing room for vehicles and daily operations. The on-site storage areas can also help accommodate business-related needs for a variety of tenant types.
The property is located close to Route 20, Route 169, and the Mass Pike. BikeScore is listed as 28 (Somewhat Bikeable) and walkScore is listed as 36 (Car-Dependent), which supports a practical, vehicle-oriented use.
Designed for flexible ownership and operation, the combination of residential income and retail frontage can support an owner-occupant or a manager-led setup, while the warehouse space and paved parking may appeal to tenants needing room for vehicles and daily operations. The on-site storage areas can also help accommodate business-related needs for a variety of tenant types.
Key Highlights
- 14,500 SF mixed‑use building built in 1900 with 4 updated residential units plus a commercial storefront
- Warehouse/workshop component includes a climate‑controlled, fully finished 2‑bedroom suite with full kitchen and full bath
- 2‑bedroom suite has its own mini‑split system and can serve as an owner‑occupant setup or a manager’s office
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
$67,443
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
8.65%
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%
$1,348,860
$1.3M
Cap Rate 7%
$963,471
$963.5K
Cap Rate 9%
$749,367
$749.4K
Market Conditions
NOI Build-Up for 5,733 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
$125.9K $21.96/SF
− Vacancy
−$3.3K −$0.57/SF
EGI
$122.6K $21.39/SF
− OpEx
−$55.2K −$9.63/SF
NOI
$67.4K $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%
$1,348,860
Cap Rate 7%
$963,471
Cap Rate 9%
$749,367
Alternative Uses
Best Use
Retail
$1.21M
$1.06M – $1.41M
NOI $84,776 @ 7.0% cap · market cap 10.87%
Second Best
Apartment 5plus
$963.5K
$843.0K – $1.12M
NOI $67,443 @ 7.0% cap · market cap 8.65%
Theoretical Best
Office A
$1.96M
$1.71M – $2.28M
NOI $137,042 @ 7.0% cap · market cap 17.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
677
Businesses Nearby
Explore this area
Business Placement
Demographics for 01550, MA
17,740
Population
7,644
Households
2.3
Avg Household Size
39
Median Age
18%
College-Educated
82%
High-School Grad
20.2 sq mi
ZIP Area
878
Density / Sq Mi
$59,397
Median Household Income
$41,365
Median Earnings
$1,157
Median Rent
$267,000
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Mixed-use building with updated residential units, a commercial storefront, and a large paved parking area.
Where is this apartment building located?
The property is located at 166 Mechanic Street Southbridge, MA.
What is the asking price?
The asking price for this property is $780,000.
What are key features of this property?
This property features: 14,500 SF mixed‑use building built in 1900 with 4 updated residential units plus a commercial storefront; Warehouse/workshop component includes a climate‑controlled, fully finished 2‑bedroom suite with full kitchen and full bath; 2‑bedroom suite has its own mini‑split system and can serve as an owner‑occupant setup or a manager’s office
