Remodeled 5-Plex with Sixth
For Sale
$1,100,000
2005 Summer St SE, Salem, OR 97302
Five units are leased, with a nearly completed one-bedroom, one-bath unit and parking via carport and driveway.
Property Size5,784 SF
Price / SF$190.18
Days on Market22
Property Features for 2005 Summer St SE
General Information
Standard status
Active
Size
5,784 SF
Property subtype
Multi-Family
Building Details
Year Built
1972
Listing Agency:
STELLAR REALTY NORTHWEST
(541) 905-1962
Listed By:
KATY ROSECRANS · License #200402282
Source:
Wisser
Added: Aug 11
Changed: Aug 29
Last Checked: Aug 30 at 8:17PM
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 STELLAR REALTY NORTHWEST
Investment Insights
Based on property information with market context.
This remodeled apartment property in southeast Salem contains five existing units, all currently leased, plus a sixth unit that is nearly complete. The additional residence is configured with one bedroom and one bathroom. The property provides 5,784 SF of apartment space and was built in 1972.
Located at 2005 Summer St SE in Salem, the property includes parking through a combination of carport and driveway spaces. The completed sixth unit adds another one-bedroom, one-bath configuration to the existing apartment layout.
Located at 2005 Summer St SE in Salem, the property includes parking through a combination of carport and driveway spaces. The completed sixth unit adds another one-bedroom, one-bath configuration to the existing apartment layout.
Key Highlights
- Five existing units are leased
- Nearly completed sixth unit with 1 bed/1 bath
- 5,784 SF apartment property
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
$63,973
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
5.82%
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%
$1,279,460
$1.3M
Cap Rate 7%
$913,900
$913.9K
Cap Rate 9%
$710,811
$710.8K
Market Conditions
NOI Build-Up for 5,784 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
$124.9K $21.60/SF
− Vacancy
−$8.6K −$1.49/SF
EGI
$116.3K $20.11/SF
− OpEx
−$52.3K −$9.05/SF
NOI
$64.0K $11.06/SF
Area
Salem, OR
Vacancy
6.90%
Lease Rate
$21.60 /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%
$1,279,460
Cap Rate 7%
$913,900
Cap Rate 9%
$710,811
Alternative Uses
Best Use
Apartment 5plus
$913.9K
$799.7K – $1.07M
NOI $63,973 @ 7.0% cap · market cap 5.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.54M
$1.34M – $1.79M
NOI $107,499 @ 7.0% cap · market cap 9.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,477
Businesses Nearby
Explore this area
Business Placement
Demographics for 97302, OR
39,776
Population
17,888
Households
2.2
Avg Household Size
41
Median Age
43%
College-Educated
95%
High-School Grad
23.5 sq mi
ZIP Area
1,693
Density / Sq Mi
$83,697
Median Household Income
$44,623
Median Earnings
$1,230
Median Rent
$415,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Five units are leased, with a nearly completed one-bedroom, one-bath unit and parking via carport and driveway.
Where is this apartment building located?
The property is located at 2005 Summer St SE Salem, OR.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Five existing units are leased; Nearly completed sixth unit with 1 bed/1 bath; 5,784 SF apartment property
