Building Details

Year built 1855

Listing Agency: Keller Williams Realty Show Phone

Listed By: Susan Rochwarg Show Phone

Added: Jul 17 Changed: Sep 3 Last Checked: Sep 4 at 12:06AM

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MLS# 73551397

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Investment Insights

Based on property information with market context.

This mixed-use property includes two separate buildings totaling 6,721 square feet. The 2,962-square-foot professional office building was constructed in 2013 and is leased to an established dental practice. A separate 3,759-square-foot two-family residence contains two income-producing apartments, configured as one two-bedroom unit and one four-bedroom unit. The property is zoned VC, or Village Center.

The parcel has frontage on Broad St and is located near I-495 and MA 110, providing access to Newburyport, Amesbury, Haverhill, and Southern NH. Its commercial and residential components support a combination of office and apartment occupancy, while redevelopment possibilities are also identified for the property.

Key Highlights

• 6,721 SF mixed‑use property across two separate buildings
• 2,962 SF professional office building constructed in 2013
• Office building leased to an established dental practice

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

$136,100

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

7.07%

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%

$2,722,000 $2.7M

Cap Rate 7%

$1,944,286 $1.9M

Cap Rate 9%

$1,512,222 $1.5M

Market Conditions

NOI Build-Up for 6,721 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

$242.0K $36.00/SF

− Vacancy

−$24.2K −$3.60/SF

EGI

$217.8K $32.40/SF

− OpEx

−$81.7K −$12.15/SF

NOI

$136.1K $20.25/SF

Area

Essex County, MA

Vacancy

10.00%

Lease Rate

$36.00 /SF/Yr

Expense Ratio

37.50%

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%

$2,722,000

Cap Rate 7%

$1,944,286

Cap Rate 9%

$1,512,222

Alternative Uses

Best Use

Office B

$2.68M

$2.34M – $3.12M (±1% cap)

NOI $187,334 @ 7.0% cap · market cap 9.73%

Second Best

Mixed Use

$1.94M

$1.70M – $2.27M (±1% cap)

NOI $136,100 @ 7.0% cap · market cap 7.07%

Theoretical Best

Office A

$3.98M

$3.48M – $4.64M (±1% cap)

NOI $278,517 @ 7.0% cap · market cap 14.47%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Medical Office Space

Suggested Use

Top Pick Law Firm Real Estate Agency Building Supply Auto Repair Shop Parking Lot & Garage Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Single-tenant

Tenancy

Yes

Highway access

Yes

Paved road 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

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Two separate buildings combine professional office space with two residential apartments.

Where is this mixed-use property located?

The property is located at 22-26 School St 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: 6,721 SF mixed‑use property across two separate buildings; 2,962 SF professional office building constructed in 2013; Office building leased to an established dental practice