Built-Out Quick-Service
New
For Sale
$200,000
24 College Ave, Somerville, MA 02144
Includes a basement level for preparation and storage, with seating for 12 guests.
Property Size600 SF
Price / SF$333.33
Days on Market4
Property Features for 24 College Ave
General Information
Standard status
Active
Size
600 SF
Property subtype
Commercial
Space & Availability
Floor
1 + Basement
Furnished
Yes
Restaurant
Seating Capacity
12
Equipment Included
Yes
Building Details
Year Built
2017
Listing Agency:
Berkshire Hathaway HomeServices Commonwealth Real Estate
(617) 969-2121
Listed By:
Arunee Tanampai
Source:
Rhodeislandhomesforsale
Added: Aug 28
Changed: Aug 31
Last Checked: Aug 30 at 3:40PM
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 Berkshire Hathaway HomeServices Commonwealth Real Estate
Investment Insights
Based on property information with market context.
This conventional restaurant is configured for quick-service operations and includes a finished first-floor area of approximately 600 square feet. A second 600-square-foot basement provides space for food preparation and storage, while the dining area accommodates 12 seats. The premises were built in 2017 and are described as well maintained.
The property is located at 24 College Ave in Somerville, near Davis Square Station and Tufts University. The offering is structured as an FF&E asset sale only, providing the physical restaurant setup rather than a real estate sale.
The property is located at 24 College Ave in Somerville, near Davis Square Station and Tufts University. The offering is structured as an FF&E asset sale only, providing the physical restaurant setup rather than a real estate sale.
Key Highlights
- Approximately 600 SF on the first floor plus an additional 600 SF basement
- 12‑seat dining capacity
- Basement space supports food preparation and storage
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
$11,239
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
5.62%
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%
$224,780
$224.8K
Cap Rate 7%
$160,557
$160.6K
Cap Rate 9%
$124,878
$124.9K
Market Conditions
NOI Build-Up for 600 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
$16.2K $27.00/SF
− Vacancy
−$1.2K −$2.03/SF
EGI
$15.0K $24.98/SF
− OpEx
−$3.7K −$6.24/SF
NOI
$11.2K $18.73/SF
Area
Middlesex County, MA
Vacancy
7.50%
Lease Rate
$27.00 /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%
$224,780
Cap Rate 7%
$160,557
Cap Rate 9%
$124,878
Alternative Uses
Best Use
Specialty Retail
$160.6K
$140.5K – $187.3K
NOI $11,239 @ 7.0% cap · market cap 5.62%
Second Best
Industrial
$91.2K
$79.8K – $106.4K
NOI $6,382 @ 7.0% cap · market cap 3.19%
Theoretical Best
Office A
$355.2K
$310.8K – $414.4K
NOI $24,864 @ 7.0% cap · market cap 12.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,744
Businesses Nearby
43k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 55%
Apparel 22%
Dining 20%
Beauty & Spa 3%
Speedway
Shops & Services
12,804 visits/mo
0.4 miles
Goodwill
Apparel
6,449 visits/mo
0.2 miles
7-Eleven
Shops & Services
6,095 visits/mo
0.2 miles
Dunkin' Donuts
Dining
4,315 visits/mo
0.5 miles
Domino's Pizza
Dining
3,167 visits/mo
0.3 miles
Demographics for 02144, MA
25,497
Population
11,881
Households
2.1
Avg Household Size
31
Median Age
75%
College-Educated
96%
High-School Grad
1.1 sq mi
ZIP Area
23,179
Density / Sq Mi
$140,591
Median Household Income
$74,639
Median Earnings
$2,654
Median Rent
$987,000
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Includes a basement level for preparation and storage, with seating for 12 guests.
Where is this conventional restaurant located?
The property is located at 24 College Ave Somerville, MA.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Approximately 600 SF on the first floor plus an additional 600 SF basement; 12‑seat dining capacity; Basement space supports food preparation and storage
