8-Unit Garden-Style Apartment
For Sale
$895,000
2522-2536 Simpson Street Southeast, Salem, OR 97301
Eight one-bedroom apartments with shared laundry, patios, and surface parking in southeast Salem.
Property Size4,202 SF
Lot Size0.30 Acres
Price / SF$212.99
Days on Market225
Property Features for 2522-2536 Simpson Street Southeast
General Information
Standard status
Active
Size
4,202 SF
Net Rentable
4,160 SF
Total Parking Spaces
11
Lot size
0.30 Acres
Property subtype
Multi Family
Zoning
RM2
Units
Unit Mix
8 x 1BR/1BA
Multifamily Units
8
Taxes and HOA fees
Annual Taxes
$8,108
Amenities
common laundry
patios
1
Other
Building Details
Year Built
1971
Construction
garden-style
Listing Agency:
SMI Commercial Real Estate LLC
(541) 990-3795
Listed By:
Eric Swanson · License #201221479
(541) 990-3795
Source:
Compass
Added: Jan 19
Changed: Aug 31
Last Checked: Aug 30 at 11:22AM
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 SMI Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
This garden-style apartment property contains 8 units, each configured with 1 bedroom and 1 bath. Built in 1971, the complex offers approximately 4,160 RSF across a 0.30-acre site, with common laundry facilities, patios, and 11 surface parking spaces. RM2 zoning supports the property’s multifamily configuration.
Located in southeast Salem, the property includes eight residential units within a compact garden-style layout. The unit mix is consistent throughout, providing a straightforward configuration for multifamily ownership and management.
Located in southeast Salem, the property includes eight residential units within a compact garden-style layout. The unit mix is consistent throughout, providing a straightforward configuration for multifamily ownership and management.
Key Highlights
- 8‑unit garden‑style apartment complex
- All units are configured as 1 bed / 1 bath
- Approximately 4,160 RSF on a 0.30‑acre site
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
$46,475
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
5.19%
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%
$929,500
$929.5K
Cap Rate 7%
$663,929
$663.9K
Cap Rate 9%
$516,389
$516.4K
Market Conditions
NOI Build-Up for 4,202 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
$90.8K $21.60/SF
− Vacancy
−$6.3K −$1.49/SF
EGI
$84.5K $20.11/SF
− OpEx
−$38.0K −$9.05/SF
NOI
$46.5K $11.06/SF
Area
Salem, OR
Vacancy
6.90%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
45.00%
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%
$929,500
Cap Rate 7%
$663,929
Cap Rate 9%
$516,389
Alternative Uses
Best Use
Apartment 5plus
$663.9K
$580.9K – $774.6K
NOI $46,475 @ 7.0% cap · market cap 5.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$976.2K – $1.30M
NOI $78,097 @ 7.0% cap · market cap 8.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
Location Intelligence
Trade Area within ½ mile
681
Businesses Nearby
Explore this area
Business Placement
Demographics for 97301, OR
56,393
Population
21,419
Households
2.6
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
11.3 sq mi
ZIP Area
4,991
Density / Sq Mi
$57,497
Median Household Income
$33,220
Median Earnings
$1,197
Median Rent
$310,800
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Eight one-bedroom apartments with shared laundry, patios, and surface parking in southeast Salem.
Where is this apartment building located?
The property is located at 2522-2536 Simpson Street Southeast Salem, OR.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: 8‑unit garden‑style apartment complex; All units are configured as 1 bed / 1 bath; Approximately 4,160 RSF on a 0.30‑acre site
