Brick Mixed-Use Multifamily
For Sale
$3,299,000
2 Derne Street, Boston, MA 02114
Six-unit brick building includes five occupied one-bedroom apartments and one ground-floor commercial unit offered vacant.
Property Size4,241 SF
Days on Market51
Property Features for 2 Derne Street
General Information
Standard status
Active
Size
4,241 SF
Property subtype
Multifamily
Additional Details
Business Included
Yes
Multifamily Units
6
Taxes and HOA fees
Annual Taxes
$9
Building Details
Building Size
4,241 SF
Year Built
1899
Listing Agency:
Boston Realty Advisors
Listed By:
Daniel Alper · License #CN254381
(617) 768-7333
Source:
Classifiedrealtygroup
Added: Jul 16
Changed: Sep 4
Last Checked: Sep 4 at 3:20AM
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 Boston Realty Advisors
Investment Insights
Based on property information with market context.
This brick mixed-use building consists of six units total, with five one-bedroom residential apartments and one ground-floor commercial space. The residential units are described as well-renovated and are fully occupied on annual leases, supporting stabilized in-place income. The ground-floor commercial unit, identified as 45-B Bowdoin Street, is currently offered vacant to support leasing, repositioning, or potential owner-occupancy.
The property is located directly across from the Massachusetts State House and is described as in a trophy Beacon Hill setting, with proximity to Boston Common and Charles Street’s shops and restaurants. Additional nearby access is described to MGH, Downtown Boston, and the Financial District, along with immediate access to MBTA Red and Green Line service.
The offering combines classic Beacon Hill architecture with both occupied residential income and a separately offered commercial unit for added flexibility.
The property is located directly across from the Massachusetts State House and is described as in a trophy Beacon Hill setting, with proximity to Boston Common and Charles Street’s shops and restaurants. Additional nearby access is described to MGH, Downtown Boston, and the Financial District, along with immediate access to MBTA Red and Green Line service.
The offering combines classic Beacon Hill architecture with both occupied residential income and a separately offered commercial unit for added flexibility.
Key Highlights
- Six‑unit brick multifamily building with 5 occupied 1‑bedroom apartments on annual leases
- All 5 apartments are fully occupied, providing stabilized in‑place income
- Includes 1 ground‑floor commercial unit (45‑B Bowdoin Street) offered vacant for leasing or owner‑occupy
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
$107,708
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
3.26%
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%
$2,154,160
$2.2M
Cap Rate 7%
$1,538,686
$1.5M
Cap Rate 9%
$1,196,756
$1.2M
Market Conditions
NOI Build-Up for 4,241 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
$203.6K $48.00/SF
− Vacancy
−$7.7K −$1.82/SF
EGI
$195.8K $46.18/SF
− OpEx
−$88.1K −$20.78/SF
NOI
$107.7K $25.40/SF
Area
ZIP 02114
Vacancy
3.80%
Lease Rate
$48.00 /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%
$2,154,160
Cap Rate 7%
$1,538,686
Cap Rate 9%
$1,196,756
Alternative Uses
Best Use
Apartment 5plus
$1.54M
$1.35M – $1.80M
NOI $107,708 @ 7.0% cap · market cap 3.26%
Second Best
Retail
$1.30M
$1.14M – $1.52M
NOI $91,270 @ 7.0% cap · market cap 2.77%
Theoretical Best
Office A
$2.21M
$1.93M – $2.57M
NOI $154,447 @ 7.0% cap · market cap 4.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
6
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
24,234
Businesses Nearby
Explore this area
Business Placement
Demographics for 02114, MA
14,469
Population
9,525
Households
1.5
Avg Household Size
33
Median Age
84%
College-Educated
97%
High-School Grad
0.4 sq mi
ZIP Area
36,173
Density / Sq Mi
$135,057
Median Household Income
$94,465
Median Earnings
$2,933
Median Rent
$927,900
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 - Six-unit brick building includes five occupied one-bedroom apartments and one ground-floor commercial unit offered vacant.
Where is this apartment building located?
The property is located at 2 Derne Street Boston, MA.
What is the asking price?
The asking price for this property is $3,299,000.
What are key features of this property?
This property features: Six‑unit brick multifamily building with 5 occupied 1‑bedroom apartments on annual leases; All 5 apartments are fully occupied, providing stabilized in‑place income; Includes 1 ground‑floor commercial unit (45‑B Bowdoin Street) offered vacant for leasing or owner‑occupy
