Gas Station Business with Repair
For Sale
$650,000
2 Andover Street, Peabody, MA 01960
Established fuel and automotive service operation with two pumps, workshop space, and customer-facing support areas.
Property Size2,021 SF
Days on Market10
Property Features for 2 Andover Street
General Information
Standard status
Active
Size
2,021 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Building Details
Building Size
2,021 SF
Year Built
2021
Listing Agency:
Berkshire Hathaway HomeServices Warren Residential
(617) 848-9616
Listed By:
Onnelly T. Parslow
(617) 512-1591
Source:
Iverty
Added: Sep 16
Changed: Sep 24
Last Checked: Sep 24 at 9:51AM
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 Warren Residential
Investment Insights
Based on property information with market context.
This established operating business combines fuel sales with automotive repair and inspection services. The site includes two gas pumps, a workshop equipped with vehicle lifts, a customer reception area, and dedicated office and storage space. The offering consists of the business, equipment, and leasehold interest; the underlying real estate is not included.
The operation occupies a highly visible corner position on Andover Street with convenient access. A ten-year lease may be available to the purchaser. Adding a convenience-store component is identified as a possible future use, subject to required approvals.
The operation occupies a highly visible corner position on Andover Street with convenient access. A ten-year lease may be available to the purchaser. Adding a convenience-store component is identified as a possible future use, subject to required approvals.
Key Highlights
- Business, equipment, and leasehold interest only; real estate is not included
- Two gas pumps support the fuel operation
- Automotive repair and inspection services in place
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
$37,357
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
5.75%
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%
$747,140
$747.1K
Cap Rate 7%
$533,671
$533.7K
Cap Rate 9%
$415,078
$415.1K
Market Conditions
NOI Build-Up for 2,021 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
$50.9K $25.20/SF
− Vacancy
−$1.1K −$0.55/SF
EGI
$49.8K $24.65/SF
− OpEx
−$12.5K −$6.16/SF
NOI
$37.4K $18.48/SF
Area
Essex County, MA
Vacancy
2.20%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
25.00%
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%
$747,140
Cap Rate 7%
$533,671
Cap Rate 9%
$415,078
Alternative Uses
Best Use
Specialty Retail
$533.7K
$467.0K – $622.6K
NOI $37,357 @ 7.0% cap · market cap 5.75%
Second Best
Retail
$474.4K
$415.1K – $553.4K
NOI $33,206 @ 7.0% cap · market cap 5.11%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,750 @ 7.0% cap · market cap 12.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
861
Businesses Nearby
18k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 33%
Dunkin' Donuts
Dining
9,295 visits/mo
0.5 miles
7-Eleven
Shops & Services
5,276 visits/mo
0.5 miles
Domino's Pizza
Dining
2,674 visits/mo
0.1 miles
People's United Bank
Shops & Services
634 visits/mo
0.5 miles
Demographics for 01960, MA
54,155
Population
23,009
Households
2.4
Avg Household Size
47
Median Age
34%
College-Educated
91%
High-School Grad
16.0 sq mi
ZIP Area
3,385
Density / Sq Mi
$95,173
Median Household Income
$56,100
Median Earnings
$1,902
Median Rent
$566,700
Median Home Value
Market
Vacancy Rate% for Retail 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?
Gas station - Established fuel and automotive service operation with two pumps, workshop space, and customer-facing support areas.
Where is this gas station located?
The property is located at 2 Andover Street Peabody, MA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Business, equipment, and leasehold interest only; real estate is not included; Two gas pumps support the fuel operation; Automotive repair and inspection services in place
