Two-Unit Duplex with
New
For Sale
$1,300,000
26-28 Gilman Terrace, Somerville, MA 02145
Both residences have central air conditioning, and the property includes a detached garage and driveway parking.
Property Size2,696 SF
Price / SF$482.20
Days on Market1
Property Features for 26-28 Gilman Terrace
General Information
Standard status
Active
Size
2,696 SF
Property subtype
Multi-Family
Units
Unit Mix
4BR/2BA, 1BR/1BA
Multifamily Units
2
Additional Details
Public Transit
Yes
Amenities
central air conditioning
laundry
wood-burning fireplace
slate patio
garden area
Building Details
Year Built
1900
Listing Agency:
Maria Babakhanova, Redfin Corp
Listed By:
Hillman Homes
(617) 609-8894
Source:
Hillmanhomesma
Added: Oct 1
Last Checked: Oct 1 at 10:15AM
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 Maria Babakhanova, Redfin Corp
Investment Insights
Based on property information with market context.
This 2,696-square-foot duplex, built in 1900, contains two residences. The upper unit occupies the second and third floors and has four bedrooms, two full bathrooms, a living room with a wood-burning fireplace, and a renovated kitchen. The first-floor unit has one bedroom, a full bathroom, and a renovated eat-in kitchen. Central air conditioning serves both units, and each has access to a full unfinished basement with laundry and storage. A solar system serves Unit 2 only.
The property sits at the end of a cul-de-sac in Somerville’s Winter Hill area, steps from the Gilman Square Green Line T station. The Public Library, Somerville High School, Community Bike Path, and Union Square are also nearby.
Exterior features include Hardie Plank siding, Azek trim, an architectural-shingle roof, and front porches. A detached one-car garage is currently used for storage and workshop space and qualifies for ADU conversion. The grounds include driveway parking, a slate patio, and a garden area.
The property sits at the end of a cul-de-sac in Somerville’s Winter Hill area, steps from the Gilman Square Green Line T station. The Public Library, Somerville High School, Community Bike Path, and Union Square are also nearby.
Exterior features include Hardie Plank siding, Azek trim, an architectural-shingle roof, and front porches. A detached one-car garage is currently used for storage and workshop space and qualifies for ADU conversion. The grounds include driveway parking, a slate patio, and a garden area.
Key Highlights
- Two‑unit duplex with 2,696 square feet; built in 1900
- Upper residence has four bedrooms and two full bathrooms; first‑floor residence has one bedroom and one full bathroom
- Central air conditioning in both units; solar system serves Unit 2 only
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
$57,048
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
4.39%
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%
$1,140,960
$1.1M
Cap Rate 7%
$814,971
$815.0K
Cap Rate 9%
$633,867
$633.9K
Market Conditions
NOI Build-Up for 2,696 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
$85.7K $31.80/SF
− Vacancy
−$4.2K −$1.57/SF
EGI
$81.5K $30.23/SF
− OpEx
−$24.4K −$9.07/SF
NOI
$57.0K $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%
$1,140,960
Cap Rate 7%
$814,971
Cap Rate 9%
$633,867
Alternative Uses
Best Use
Multifamily LT 5
$815.0K
$713.1K – $950.8K
NOI $57,048 @ 7.0% cap · market cap 4.39%
Second Best
Apartment 5plus
$766.3K
$670.5K – $894.0K
NOI $53,641 @ 7.0% cap · market cap 4.13%
Theoretical Best
Office A
$1.60M
$1.40M – $1.86M
NOI $111,722 @ 7.0% cap · market cap 8.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
2,311
Businesses Nearby
Explore this area
Business Placement
Demographics for 02145, MA
27,520
Population
12,669
Households
2.2
Avg Household Size
33
Median Age
55%
College-Educated
89%
High-School Grad
1.4 sq mi
ZIP Area
19,657
Density / Sq Mi
$119,167
Median Household Income
$63,629
Median Earnings
$2,377
Median Rent
$784,900
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?
Duplex - Both residences have central air conditioning, and the property includes a detached garage and driveway parking.
Where is this duplex located?
The property is located at 26-28 Gilman Terrace Somerville, MA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Two‑unit duplex with 2,696 square feet; built in 1900; Upper residence has four bedrooms and two full bathrooms; first‑floor residence has one bedroom and one full bathroom; Central air conditioning in both units; solar system serves Unit 2 only
