Three-Unit Residential Income
For Sale
$865,000
26 Sterling Street, Worcester, MA 01610
Well-maintained three-family building with three 3-bedroom, 1-bath units, including a vacant unit for immediate occupancy.
Property Size3,936 SF
Price / SF$219.77
Days on Market127
Property Features for 26 Sterling Street
General Information
Standard status
Active
Size
3,936 SF
Total Parking Spaces
6
Property subtype
Multi-family
Additional Details
Multifamily Units
3
Building Details
Year Built
1920
Stories
3
Tenancy
Multi
Listing Agency:
BA Property & Lifestyle Advisors
Listed By:
Michael Barbera
(774) 280-2745
Source:
Broadboutique
Added: Apr 19
Changed: Aug 22
Last Checked: Aug 22 at 9:45AM
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 BA Property & Lifestyle Advisors
Investment Insights
Based on property information with market context.
This well-maintained three-family property offers three spacious 3-bedroom, 1-bath units. The building is configured to provide residential income with two units currently leased and a vacant third-floor unit that can support immediate occupancy or new tenancy. Recent updates include renovated kitchens and baths, replacement windows, updated electrical and plumbing systems, and a newer roof.
The property is situated on a large lot with approximately six off-street parking spaces and a generous rear yard. Tenants pay their own heat, hot water, gas, and electric, which can help reduce owner expenses.
Each unit offers a flexible layout, and the floor plans may support future bedroom configuration changes, subject to buyer due diligence. The location provides convenient access to major routes, public transportation, schools, hospitals, and downtown Worcester amenities.
The property is situated on a large lot with approximately six off-street parking spaces and a generous rear yard. Tenants pay their own heat, hot water, gas, and electric, which can help reduce owner expenses.
Each unit offers a flexible layout, and the floor plans may support future bedroom configuration changes, subject to buyer due diligence. The location provides convenient access to major routes, public transportation, schools, hospitals, and downtown Worcester amenities.
Key Highlights
- Three‑family property built in 1920 with three 3‑bedroom, 1‑bath units
- Approximately 3,936 SF of living area across the three units
- Two units are leased; the third‑floor unit is vacant and available for immediate occupancy or rental
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
$57,801
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
6.68%
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%
$1,156,020
$1.2M
Cap Rate 7%
$825,729
$825.7K
Cap Rate 9%
$642,233
$642.2K
Market Conditions
NOI Build-Up for 3,936 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
$87.4K $22.20/SF
− Vacancy
−$4.8K −$1.22/SF
EGI
$82.6K $20.98/SF
− OpEx
−$24.8K −$6.29/SF
NOI
$57.8K $14.69/SF
Area
Worcester, MA
Vacancy
5.50%
Lease Rate
$22.20 /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%
$1,156,020
Cap Rate 7%
$825,729
Cap Rate 9%
$642,233
Alternative Uses
Best Use
Multifamily LT 5
$825.7K
$722.5K – $963.4K
NOI $57,801 @ 7.0% cap · market cap 6.68%
Second Best
Apartment 5plus
$758.0K
$663.2K – $884.3K
NOI $53,059 @ 7.0% cap · market cap 6.13%
Theoretical Best
Office A
$1.31M
$1.15M – $1.53M
NOI $91,963 @ 7.0% cap · market cap 10.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,007
Businesses Nearby
Explore this area
Business Placement
Demographics for 01610, MA
28,717
Population
10,263
Households
2.8
Avg Household Size
28
Median Age
18%
College-Educated
74%
High-School Grad
2.1 sq mi
ZIP Area
13,675
Density / Sq Mi
$43,757
Median Household Income
$22,978
Median Earnings
$1,339
Median Rent
$279,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Triplex - Well-maintained three-family building with three 3-bedroom, 1-bath units, including a vacant unit for immediate occupancy.
Where is this triplex located?
The property is located at 26 Sterling Street Worcester, MA.
What is the asking price?
The asking price for this property is $865,000.
What are key features of this property?
This property features: Three‑family property built in 1920 with three 3‑bedroom, 1‑bath units; Approximately 3,936 SF of living area across the three units; Two units are leased; the third‑floor unit is vacant and available for immediate occupancy or rental
