Six-Unit Multifamily
New
For Sale
$1,999,000
21 Palmer St, Salem, MA 01970
Three- and four-bedroom apartments with on-site laundry and storage support a practical residential income configuration.
Property Size7,044 SF
Days on Market4
Property Features for 21 Palmer St
General Information
Standard status
Active
Size
7,044 SF
Total Parking Spaces
6
Property subtype
Multifamily
Taxes and HOA fees
Annual Taxes
$18,974
Building Details
Building Size
7,044 SF
Year Built
1915
Listing Agency:
Realty ONE Group Cosmopolitan
Listed By:
Elsa Liu · License #9581218
(781) 219-3200
Source:
Classifiedrealtygroup
Added: Sep 11
Changed: Sep 12
Last Checked: Sep 13 at 5:42AM
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 Realty ONE Group Cosmopolitan
Investment Insights
Based on property information with market context.
This 1915 multifamily property contains 6 units and 20 bedrooms, arranged as two 4-bedroom apartments and four 3-bedroom apartments. On-site laundry and storage provide additional property amenities and income sources. The building has been repositioned for continued operation as a multifamily asset.
Located at 21 Palmer St in Salem, the property offers access to Boston via MBTA Commuter Rail. Salem’s downtown, waterfront, restaurants, shopping, and entertainment are also nearby. The offering reflects a 9.81% cap rate and an established residential configuration with varied apartment sizes.
Located at 21 Palmer St in Salem, the property offers access to Boston via MBTA Commuter Rail. Salem’s downtown, waterfront, restaurants, shopping, and entertainment are also nearby. The offering reflects a 9.81% cap rate and an established residential configuration with varied apartment sizes.
Key Highlights
- 6‑unit multifamily property with 20 bedrooms
- Unit mix includes two 4‑bedroom apartments and four 3‑bedroom apartments
- 9.81% cap rate
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
$107,114
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
5.36%
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%
$2,142,280
$2.1M
Cap Rate 7%
$1,530,200
$1.5M
Cap Rate 9%
$1,190,156
$1.2M
Market Conditions
NOI Build-Up for 7,044 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
$202.9K $28.80/SF
− Vacancy
−$8.1K −$1.15/SF
EGI
$194.8K $27.65/SF
− OpEx
−$87.6K −$12.44/SF
NOI
$107.1K $15.21/SF
Area
Essex County, MA
Vacancy
4.00%
Lease Rate
$28.80 /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%
$2,142,280
Cap Rate 7%
$1,530,200
Cap Rate 9%
$1,190,156
Alternative Uses
Best Use
Apartment 5plus
$1.53M
$1.34M – $1.79M
NOI $107,114 @ 7.0% cap · market cap 5.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.17M
$3.65M – $4.87M
NOI $291,902 @ 7.0% cap · market cap 14.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,589
Businesses Nearby
Explore this area
Business Placement
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
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 - Three- and four-bedroom apartments with on-site laundry and storage support a practical residential income configuration.
Where is this apartment building located?
The property is located at 21 Palmer St Salem, MA.
What is the asking price?
The asking price for this property is $1,999,000.
What are key features of this property?
This property features: 6‑unit multifamily property with 20 bedrooms; Unit mix includes two 4‑bedroom apartments and four 3‑bedroom apartments; 9.81% cap rate
