Historic Mixed-Use
New
For Sale
$1,200,000
185 Main St, Spencer, MA 01562
Three-story building combines residential apartments, commercial offices, and on-site parking.
Property Size9,934 SF
Price / SF$120.80
Days on Market3
Property Features for 185 Main St
General Information
Standard status
Active
Size
9,934 SF
Zoning
VR
Taxes and HOA fees
Annual Taxes
$6,071
Building Details
Building Size
9,934 SF
Year Built
1890
Listing Agency:
ERA Key Realty Services- Spenc
Listed By:
Donna Flannery · License #9004142
(508) 885-6665
Source:
Laerrealty
Added: Sep 22
Last Checked: Sep 24 at 7:43AM
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 ERA Key Realty Services- Spenc
Investment Insights
Based on property information with market context.
Built circa 1890, this three-story mixed-use property contains approximately 9,934 square feet of combined residential and office space. The layout includes 7 one- and two-bedroom apartments alongside 10 commercial office spaces, creating a varied rental configuration. Historic architectural details remain throughout the building, which is situated on approximately 0.82 acres.
The property provides 25+ off-street parking spaces, paved parking, public water and sewer, natural gas, and VR zoning. Additional land may support expanded parking or new buildings, subject to town approvals. Its Spencer setting is near downtown and adjacent to Isaac Prouty Veterans Park, with public transportation, shopping, restaurants, and other amenities nearby. Worcester Regional Airport, the Mass Pike, and major routes are less than 15 minutes away.
The property provides 25+ off-street parking spaces, paved parking, public water and sewer, natural gas, and VR zoning. Additional land may support expanded parking or new buildings, subject to town approvals. Its Spencer setting is near downtown and adjacent to Isaac Prouty Veterans Park, with public transportation, shopping, restaurants, and other amenities nearby. Worcester Regional Airport, the Mass Pike, and major routes are less than 15 minutes away.
Key Highlights
- 17 rental units: 7 residential apartments and 10 commercial office spaces
- Approximately 9,934 square feet in a 3‑story mixed‑use building
- Approximately 0.82 acres with 25+ off‑street parking spaces
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
$89,592
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
7.47%
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%
$1,791,840
$1.8M
Cap Rate 7%
$1,279,886
$1.3M
Cap Rate 9%
$995,467
$995.5K
Market Conditions
NOI Build-Up for 9,934 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
$155.0K $15.60/SF
− Vacancy
−$11.6K −$1.17/SF
EGI
$143.3K $14.43/SF
− OpEx
−$53.8K −$5.41/SF
NOI
$89.6K $9.02/SF
Area
Worcester County, MA
Vacancy
7.50%
Lease Rate
$15.60 /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%
$1,791,840
Cap Rate 7%
$1,279,886
Cap Rate 9%
$995,467
Alternative Uses
Best Use
Office B
$2.59M
$2.26M – $3.02M
NOI $181,047 @ 7.0% cap · market cap 15.09%
Second Best
Apartment 5plus
$1.67M
$1.46M – $1.95M
NOI $116,863 @ 7.0% cap · market cap 9.74%
Theoretical Best
Office A
$3.39M
$2.97M – $3.96M
NOI $237,462 @ 7.0% cap · market cap 19.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
376
Businesses Nearby
Explore this area
Business Placement
Demographics for 01562, MA
11,992
Population
5,788
Households
2.1
Avg Household Size
44
Median Age
27%
College-Educated
92%
High-School Grad
32.9 sq mi
ZIP Area
364
Density / Sq Mi
$79,086
Median Household Income
$49,131
Median Earnings
$1,085
Median Rent
$368,300
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 - Three-story building combines residential apartments, commercial offices, and on-site parking.
Where is this mixed-use property located?
The property is located at 185 Main St Spencer, MA.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 17 rental units: 7 residential apartments and 10 commercial office spaces; Approximately 9,934 square feet in a 3‑story mixed‑use building; Approximately 0.82 acres with 25+ off‑street parking spaces
