Renovated Apartment Building with
For Sale
$1,350,000
188 Park Ave Aka 127 Institute Rd, Worcester, MA 01609
Fourteen-bedroom, five-bath student housing property with permitted renovations, updated systems, and leased occupancy through Summer 2027.
Property Size5,140 SF
Days on Market9
Property Features for 188 Park Ave Aka 127 Institute Rd
General Information
Standard status
Active
Size
5,140 SF
Total Parking Spaces
12
Property subtype
Multifamily
Occupancy
100%
Additional Details
Sprinkler System
Yes
Taxes and HOA fees
Annual Taxes
$12,859
Amenities
coin Op laundry system
Building Details
Building Size
5,140 SF
Year Built
1920
Year Renovated
2025
Stories
3
Listing Agency:
Property Investors & Advisors, LLC
(508) 868-0927
Listed By:
Brian Allen · License #9583389
Source:
Classifiedrealtygroup
Added: Aug 4
Changed: Aug 8
Last Checked: Aug 11 at 5:16AM
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 Property Investors & Advisors, LLC
Investment Insights
Based on property information with market context.
This three-decker apartment building contains 14 bedrooms and 5 bathrooms and received a comprehensive renovation in 2025. The work was professionally permitted and inspected, with new kitchens featuring granite counters, tiled bathrooms, new flooring, updated plumbing and electrical systems, gas heating, water heaters, and a complete fire sprinkler system. A coin-operated laundry system adds another on-site feature.
The property is fully leased to WPI students through Summer 2027. It also includes a large paved parking lot with ample off-street parking, supporting the property's student-housing configuration. The building was originally constructed in 1920 and is located in Worcester, Massachusetts.
The property is fully leased to WPI students through Summer 2027. It also includes a large paved parking lot with ample off-street parking, supporting the property's student-housing configuration. The building was originally constructed in 1920 and is located in Worcester, Massachusetts.
Key Highlights
- 14‑bedroom, 5‑bath three‑decker apartment building
- Comprehensively renovated in 2025 with work professionally permitted and inspected
- Fully leased to WPI students through Summer 2027
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
$69,290
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
5.13%
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%
$1,385,800
$1.4M
Cap Rate 7%
$989,857
$989.9K
Cap Rate 9%
$769,889
$769.9K
Market Conditions
NOI Build-Up for 5,140 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
$132.6K $25.80/SF
− Vacancy
−$6.6K −$1.29/SF
EGI
$126.0K $24.51/SF
− OpEx
−$56.7K −$11.03/SF
NOI
$69.3K $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%
$1,385,800
Cap Rate 7%
$989,857
Cap Rate 9%
$769,889
Alternative Uses
Best Use
Apartment 5plus
$989.9K
$866.1K – $1.15M
NOI $69,290 @ 7.0% cap · market cap 5.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.72M
$1.50M – $2.00M
NOI $120,093 @ 7.0% cap · market cap 8.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
859
Businesses Nearby
Explore this area
Business Placement
Demographics for 01609, MA
23,870
Population
9,126
Households
2.6
Avg Household Size
29
Median Age
49%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
6,451
Density / Sq Mi
$61,411
Median Household Income
$32,399
Median Earnings
$1,212
Median Rent
$422,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - Fourteen-bedroom, five-bath student housing property with permitted renovations, updated systems, and leased occupancy through Summer 2027.
Where is this apartment building located?
The property is located at 188 Park Ave Aka 127 Institute Rd Worcester, MA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 14‑bedroom, 5‑bath three‑decker apartment building; Comprehensively renovated in 2025 with work professionally permitted and inspected; Fully leased to WPI students through Summer 2027
