Building Details

Year Built 1975

Listing Agency: K***@gmail.com Show Phone

Listed By: Kimberly Allen Show Phone

Source: Elliman

Added: Mar 10 Changed: Jul 6 Last Checked: Aug 20 at 9:29AM

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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 Kimberly Allen

Investment Insights

Based on property information with market context.

This offering includes a six-unit shopping center totaling 8,427 square feet, situated in a high-traffic location in Feeding Hills. All six units are currently occupied by long-term tenants, with one tenant having been in place since the building's construction in 1975. The purchase also includes a 2,828 square foot building located at 23 Southwick St, constructed in 1900, which features an empty office on the first floor. The gross annual income for the properties is $152,340. Seller financing may be available.

Key Highlights

• High Gross Annual Income: $152,340.00
• Established Shopping Center: 6 units (8,427 sq. ft) in high‑traffic location.
• Long‑Term Tenants: Stable income with tenants, including one since 1975.

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

$138,459

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

5.54%

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%

$2,769,180 $2.8M

Cap Rate 7%

$1,977,986 $2.0M

Cap Rate 9%

$1,538,433 $1.5M

Market Conditions

NOI Build-Up for 8,427 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

$202.2K $24.00/SF

− Vacancy

−$4.4K −$0.53/SF

EGI

$197.8K $23.47/SF

− OpEx

−$59.3K −$7.04/SF

NOI

$138.5K $16.43/SF

Area

Hampden County, MA

Vacancy

2.20%

Lease Rate

$24.00 /SF/Yr

Expense Ratio

30.00%

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%

$2,769,180

Cap Rate 7%

$1,977,986

Cap Rate 9%

$1,538,433

Alternative Uses

Best Use

Office B

$3.82M

$3.34M – $4.46M (±1% cap)

NOI $267,392 @ 7.0% cap · market cap 10.70%

Second Best

Retail

$1.98M

$1.73M – $2.31M (±1% cap)

NOI $138,459 @ 7.0% cap · market cap 5.54%

Theoretical Best

Office A

$5.19M

$4.54M – $6.06M (±1% cap)

NOI $363,561 @ 7.0% cap · market cap 14.54%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Shopping centers

Suggested Use

Top Pick Law Firm Building Supply Kitchen & Bath Showroom Electrical Service Auto Repair Shop HVAC Service

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

Location Intelligence

Trade Area within ½ mile

245

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 01030, MA

11,708

Population

5,199

Households

2.3

Avg Household Size

46

Median Age

34%

College-Educated

97%

High-School Grad

12.0 sq mi

ZIP Area

976

Density / Sq Mi

$92,485

Median Household Income

$56,324

Median Earnings

$1,124

Median Rent

$315,900

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

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Frequently Asked Questions

What type of property is this?

Shopping center - Six-unit shopping center with additional office building in Agawam, MA.

Where is this shopping center located?

The property is located at 23-39 Southwick St Feeding Hills, MA.

What is the asking price?

The asking price for this property is $2,500,000.

What are key features of this property?

This property features: High Gross Annual Income: $152,340.00; Established Shopping Center: 6 units (8,427 sq. ft) in high‑traffic location.; Long‑Term Tenants: Stable income with tenants, including one since 1975.