Mixed-Use Retail and Residential
For Sale
$2,200,000
237 Highland Ave, Somerville, MA 02143
Two street-level storefronts and four leased residential units combine in a mixed-use building with access to major regional routes.
Property Size6,020 SF
Price / SF$365.45
Days on Market81
Property Features for 237 Highland Ave
General Information
Standard status
Active
Size
6,020 SF
Property subtype
Multi-Family
Zoning
MR3
Net Operating Income
$123,293
Taxes and HOA fees
Annual Taxes
$28,451
Building Details
Building Size
6,020 SF
Year Built
1900
Stories
3
Listing Agency:
Herion Karbunara
(833) 668-4649
Listed By:
Chris Bernier
(978) 578-5013
Source:
Churchillprop
Added: Jun 16
Changed: Sep 4
Last Checked: Sep 4 at 3:36AM
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 Herion Karbunara
Investment Insights
Based on property information with market context.
Offered for sale, 237 Highland Avenue is a mixed-use property totaling 8,176 square feet. The building includes two street-level commercial storefront spaces that are currently occupied by a nail salon and a tailor. It also has four residential units consisting of two one-bedroom apartments, one studio apartment, and one four-bedroom apartment. All residential units are leased through August 2027.
The property is located close to Davis Square and Porter Square, with convenient access to Route 93, Boston, Cambridge, and public transportation.
Group showings and open house only are scheduled for Thurs, June 18 from 12:00–1:00 pm, Fri, June 19 from 12:00–1:00 pm, Sat, June 20 from 12:00–1:30 pm, and Sun, June 21 from 12:00–1:30 pm.
The property is located close to Davis Square and Porter Square, with convenient access to Route 93, Boston, Cambridge, and public transportation.
Group showings and open house only are scheduled for Thurs, June 18 from 12:00–1:00 pm, Fri, June 19 from 12:00–1:00 pm, Sat, June 20 from 12:00–1:30 pm, and Sun, June 21 from 12:00–1:30 pm.
Key Highlights
- Mixed‑use building with 2 street‑level commercial storefronts plus 4 residential units
- Commercial storefronts are currently leased to a nail salon and a tailor
- Residential unit mix: two 1‑bedroom apartments, one studio, and one 4‑bedroom apartment
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
$127,385
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
5.79%
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%
$2,547,700
$2.5M
Cap Rate 7%
$1,819,786
$1.8M
Cap Rate 9%
$1,415,389
$1.4M
Market Conditions
NOI Build-Up for 6,020 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
$191.4K $31.80/SF
− Vacancy
−$9.5K −$1.57/SF
EGI
$182.0K $30.23/SF
− OpEx
−$54.6K −$9.07/SF
NOI
$127.4K $21.16/SF
Area
Middlesex County, MA
Vacancy
4.94%
Lease Rate
$31.80 /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%
$2,547,700
Cap Rate 7%
$1,819,786
Cap Rate 9%
$1,415,389
Alternative Uses
Best Use
Multifamily LT 5
$1.82M
$1.59M – $2.12M
NOI $127,385 @ 7.0% cap · market cap 5.79%
Second Best
Apartment 5plus
$1.71M
$1.50M – $2.00M
NOI $119,778 @ 7.0% cap · market cap 5.44%
Theoretical Best
Office A
$3.56M
$3.12M – $4.16M
NOI $249,467 @ 7.0% cap · market cap 11.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,432
Businesses Nearby
Explore this area
Business Placement
Demographics for 02143, MA
26,022
Population
12,901
Households
2
Avg Household Size
33
Median Age
74%
College-Educated
95%
High-School Grad
1.5 sq mi
ZIP Area
17,348
Density / Sq Mi
$126,102
Median Household Income
$73,055
Median Earnings
$2,424
Median Rent
$930,200
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Quadplex - Two street-level storefronts and four leased residential units combine in a mixed-use building with access to major regional routes.
Where is this quadplex located?
The property is located at 237 Highland Ave Somerville, MA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Mixed‑use building with 2 street‑level commercial storefronts plus 4 residential units; Commercial storefronts are currently leased to a nail salon and a tailor; Residential unit mix: two 1‑bedroom apartments, one studio, and one 4‑bedroom apartment
