Renovated Mixed-Use
New
For Sale
$1,980,000
181-187 Chestnut St, Springfield, MA 01103
Historic brick property combines three commercial spaces with eight one-bedroom apartments.
Property Size11,628 SF
Price / SF$170.28
Days on Market6
Property Features for 181-187 Chestnut St
General Information
Standard status
Active
Size
11,628 SF
Total Parking Spaces
6
Property subtype
Multifamily
Units
Unit Mix
8 x 1BR/1BA
Multifamily Units
8
Additional Details
Asking Price
$1,988,000
Public Transit
Yes
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$21,013
Amenities
High Ceilings
Oversized Windows
Common Areas
Building Details
Building Size
11,628 SF
Year Built
1900
Buildings
1
Construction
Brick
Tenancy
Multi
Listing Agency:
Berkshire Hathaway HomeServices Realty Professionals
Listed By:
Anthony Ardolino · License #9517020-RE-B
(413) 543-6766
Source:
Classifiedrealtygroup
Added: Sep 18
Changed: Sep 21
Last Checked: Sep 22 at 1:38PM
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 Berkshire Hathaway HomeServices Realty Professionals
Investment Insights
Based on property information with market context.
Built in 1875, this approximately 11,628-square-foot brick mixed-use building contains 11 units: three street-level commercial spaces and eight one-bedroom apartments. The property has undergone significant renovation and includes separate utilities, a full sprinkler system, high ceilings, oversized windows, and maintained common areas.
Located at 181–187 Chestnut Street within downtown Springfield’s Business Improvement District, the building is near Union Station, downtown employers, restaurants, entertainment, and regional transportation routes. The nearby 125 Liberty Street site has been selected for the Roderick L. Ireland Regional Justice Center, adding a significant public project within several blocks of the property.
Located at 181–187 Chestnut Street within downtown Springfield’s Business Improvement District, the building is near Union Station, downtown employers, restaurants, entertainment, and regional transportation routes. The nearby 125 Liberty Street site has been selected for the Roderick L. Ireland Regional Justice Center, adding a significant public project within several blocks of the property.
Key Highlights
- 11‑unit configuration with 3 commercial spaces and 8 one‑bedroom apartments
- Approximately 11,628 SF historic brick building
- Significant renovation with full sprinkler system and separate utilities
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
$156,978
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
7.93%
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%
$3,139,560
$3.1M
Cap Rate 7%
$2,242,543
$2.2M
Cap Rate 9%
$1,744,200
$1.7M
Market Conditions
NOI Build-Up for 11,628 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
$279.1K $24.00/SF
− Vacancy
−$27.9K −$2.40/SF
EGI
$251.2K $21.60/SF
− OpEx
−$94.2K −$8.10/SF
NOI
$157.0K $13.50/SF
Area
Springfield, MA
Vacancy
10.00%
Lease Rate
$24.00 /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%
$3,139,560
Cap Rate 7%
$2,242,543
Cap Rate 9%
$1,744,200
Alternative Uses
Best Use
Mixed Use
$2.24M
$1.96M – $2.62M
NOI $156,978 @ 7.0% cap · market cap 7.93%
Second Best
Apartment 5plus
$2.19M
$1.91M – $2.55M
NOI $153,106 @ 7.0% cap · market cap 7.73%
Theoretical Best
Office A
$3.16M
$2.76M – $3.68M
NOI $221,025 @ 7.0% cap · market cap 11.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
Multi-tenant
Tenancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
4,125
Businesses Nearby
Explore this area
Business Placement
Demographics for 01103, MA
2,545
Population
1,728
Households
1.5
Avg Household Size
39
Median Age
36%
College-Educated
82%
High-School Grad
0.4 sq mi
ZIP Area
6,363
Density / Sq Mi
$21,458
Median Household Income
$38,156
Median Earnings
$1,053
Median Rent
$148,000
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?
Mixed-use property - Historic brick property combines three commercial spaces with eight one-bedroom apartments.
Where is this mixed-use property located?
The property is located at 181-187 Chestnut St Springfield, MA.
What is the asking price?
The asking price for this property is $1,980,000.
What are key features of this property?
This property features: 11‑unit configuration with 3 commercial spaces and 8 one‑bedroom apartments; Approximately 11,628 SF historic brick building; Significant renovation with full sprinkler system and separate utilities
