Seven-Unit Student Housing
New
For Sale
$1,499,000
28 Sever St, Worcester, MA 01609
Leased through Summer 2027 with separately metered electricity and coin-operated laundry.
Property Size5,596 SF
Days on Market3
Property Features for 28 Sever St
General Information
Standard status
Active
Size
5,596 SF
Property subtype
Investment
Occupancy
100%
Units
Unit Mix
3 x 2BR/1BA, 2 x 3BR/1BA, 1 x 1BR/1BA, 1 x 5BR/1.5BA
Multifamily Units
7
Additional Details
Gross Income
$170,400
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$11,205
Amenities
on-site laundry
Building Details
Building Size
5,596 SF
Year Built
1920
Stories
5
Units
7
Listing Agency:
Property Investors & Advisors, LLC
(508) 868-0927
Listed By:
Brian Allen · License #9583389
(508) 868-0927
Source:
Elliman
Added: Aug 20
Changed: Aug 21
Last Checked: Aug 21 at 5:21AM
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 Property Investors & Advisors, LLC
Investment Insights
Based on property information with market context.
Built in 1920, this seven-unit apartment property at 28 Sever St includes a mix of one- to five-bedroom apartments. The unit configuration comprises two 2BD/1BA apartments, two 3BD/1BA apartments, one 1BD/1BA apartment, and one 5BD/1.5BA apartment, along with another 2BD/1BA apartment. All apartments are leased through Summer 2027, including six units occupied by WPI students.
Electricity is separately metered, and residents are responsible for electric and internet service. Property improvements include a replacement roof with gutters, upgraded electrical service and panels, and interior work in multiple apartments. An on-site coin-operated laundry provides an additional income source.
The property is located near WPI, downtown Worcester, restaurants, and shopping. WalkScore is 73, BikeScore is 31, and TransitScore is 31.
Electricity is separately metered, and residents are responsible for electric and internet service. Property improvements include a replacement roof with gutters, upgraded electrical service and panels, and interior work in multiple apartments. An on-site coin-operated laundry provides an additional income source.
The property is located near WPI, downtown Worcester, restaurants, and shopping. WalkScore is 73, BikeScore is 31, and TransitScore is 31.
Key Highlights
- Seven‑unit apartment property at 28 Sever St, Worcester, MA 01609
- All seven apartments leased through Summer 2027
- Six of seven units leased to WPI students
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
$75,437
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
5.03%
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%
$1,508,740
$1.5M
Cap Rate 7%
$1,077,671
$1.1M
Cap Rate 9%
$838,189
$838.2K
Market Conditions
NOI Build-Up for 5,596 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
$144.4K $25.80/SF
− Vacancy
−$7.2K −$1.29/SF
EGI
$137.2K $24.51/SF
− OpEx
−$61.7K −$11.03/SF
NOI
$75.4K $13.48/SF
Area
Worcester, MA
Vacancy
5.00%
Lease Rate
$25.80 /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%
$1,508,740
Cap Rate 7%
$1,077,671
Cap Rate 9%
$838,189
Alternative Uses
Best Use
Apartment 5plus
$1.08M
$943.0K – $1.26M
NOI $75,437 @ 7.0% cap · market cap 5.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.87M
$1.63M – $2.18M
NOI $130,748 @ 7.0% cap · market cap 8.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
100%
Occupancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
4,145
Businesses Nearby
Explore this area
Business Placement
Demographics for 01609, MA
23,870
Population
9,126
Households
2.6
Avg Household Size
29
Median Age
49%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
6,451
Density / Sq Mi
$61,411
Median Household Income
$32,399
Median Earnings
$1,212
Median Rent
$422,100
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?
Apartment building - Leased through Summer 2027 with separately metered electricity and coin-operated laundry.
Where is this apartment building located?
The property is located at 28 Sever St Worcester, MA.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: Seven‑unit apartment property at 28 Sever St, Worcester, MA 01609; All seven apartments leased through Summer 2027; Six of seven units leased to WPI students
