Mixed-Use Village Center
For Sale
$1,925,000
22-26 School Street, Merrimac, MA 01860
Two-building mixed-use property includes a modern office building and a two-family residence with two income-producing apartments.
Property Size5,362 SF
Lot Size1.16 Acres
Price / SF$359.01
Days on Market50
Property Features for 22-26 School Street
General Information
Standard status
Active
Size
5,362 SF
Lot size
1.16 Acres
Property subtype
OFC, RES
Zoning
Village Center
Units
Multifamily Units
2
Office Units
1
Additional Details
Highway Access
Yes
Building Details
Year Built
1855
Tenancy
Multi
Listing Agency:
KW Commercial Faulkner Commercial Group
Listed By:
Janet Faulkner · License #066987
(800) 281-1316
Source:
Realnex
Added: Jul 17
Changed: Jul 19
Last Checked: Jul 20 at 1:42AM
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 KW Commercial Faulkner Commercial Group
Investment Insights
Based on property information with market context.
This mixed-use Village Center-zoned property comprises two separate buildings on a single parcel. The first is a 2,800 SF professional office building constructed in 2013 and currently leased to an established dental practice. The second building is a 2,562 SF two-family residence that includes two income-producing apartments.
The property is described as being well located in Merrimac, with convenient access to I-495 and Route 110 and travel connections to Newburyport, Amesbury, Haverhill, and Southern NH.
Financial information is available upon execution of a Confidentiality Agreement, and prospective buyers are encouraged to perform due diligence in all aspects of a contemplated acquisition. The remarks also note that redevelopment possibilities exist.
The property is described as being well located in Merrimac, with convenient access to I-495 and Route 110 and travel connections to Newburyport, Amesbury, Haverhill, and Southern NH.
Financial information is available upon execution of a Confidentiality Agreement, and prospective buyers are encouraged to perform due diligence in all aspects of a contemplated acquisition. The remarks also note that redevelopment possibilities exist.
Key Highlights
- 1.164± acre Village Center‑zoned mixed‑use property with two separate buildings
- 2,800 SF professional office building built in 2013, leased to an established dental practice
- 2,562 SF two‑family residence with two income‑producing apartments
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
$149,455
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
7.76%
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%
$2,989,100
$3.0M
Cap Rate 7%
$2,135,071
$2.1M
Cap Rate 9%
$1,660,611
$1.7M
Market Conditions
NOI Build-Up for 5,362 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
$244.5K $45.60/SF
− Vacancy
−$45.2K −$8.44/SF
EGI
$199.3K $37.16/SF
− OpEx
−$49.8K −$9.29/SF
NOI
$149.5K $27.87/SF
Area
Essex County, MA
Vacancy
18.50%
Lease Rate
$45.60 /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%
$2,989,100
Cap Rate 7%
$2,135,071
Cap Rate 9%
$1,660,611
Alternative Uses
Best Use
Office B
$2.14M
$1.87M – $2.49M
NOI $149,455 @ 7.0% cap · market cap 7.76%
Second Best
Mixed Use
$1.55M
$1.36M – $1.81M
NOI $108,581 @ 7.0% cap · market cap 5.64%
Theoretical Best
Office A
$3.17M
$2.78M – $3.70M
NOI $222,200 @ 7.0% cap · market cap 11.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
2
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
209
Businesses Nearby
Explore this area
Business Placement
Demographics for 01860, MA
6,723
Population
2,851
Households
2.4
Avg Household Size
47
Median Age
37%
College-Educated
95%
High-School Grad
8.5 sq mi
ZIP Area
791
Density / Sq Mi
$116,477
Median Household Income
$60,643
Median Earnings
$1,236
Median Rent
$531,300
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-building mixed-use property includes a modern office building and a two-family residence with two income-producing apartments.
Where is this mixed-use property located?
The property is located at 22-26 School Street Merrimac, MA.
What is the asking price?
The asking price for this property is $1,925,000.
What are key features of this property?
This property features: 1.164± acre Village Center‑zoned mixed‑use property with two separate buildings; 2,800 SF professional office building built in 2013, leased to an established dental practice; 2,562 SF two‑family residence with two income‑producing apartments
