Automotive Facility with Service
For Sale
$2,995,000
296 & 288 Highland Ave, Salem, MA 01970
Approved for auto body use, this automotive facility features six service bays, lifts, and showroom space on high-traffic frontage.
Property Size5,483 SF
Price / SF$546.23
Days on Market36
Property Features for 296 & 288 Highland Ave
General Information
Standard status
Active
Size
5,483 SF
Zoning
Comm/Resid
Additional Details
Business Included
Yes
Traffic Count
35,000 vehicles/day
Service Bays
6
Taxes and HOA fees
Annual Taxes
$39,693
Building Details
Building Size
5,483 SF
Year Built
1950
Listing Agency:
Keller Williams Realty - Londonderry
(603) 770-5199
Listed By:
Doug C Martin
Source:
Laerrealty
Added: Jul 5
Changed: Aug 8
Last Checked: Jul 5 at 5:21PM
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 Keller Williams Realty - Londonderry
Investment Insights
Based on property information with market context.
The offering includes two commercial lots totaling over 200 feet of frontage and an automotive facility designed for service and collision-style operations. The primary retail parcel contains a 4,488 SF automotive building with six service bays and four lifts, along with showroom space, a manager’s office, parts and stock rooms, a customer waiting area, and a security system. The property is described as approved for auto body use, supporting automotive sales, service, repair, and collision operations.
The parcels are located on busy Highland Ave in a high-traffic retail corridor with more than 35,000 vehicles per day. The second parcel includes a small residential structure situated on commercially zoned land, which may be of interest to buyers evaluating redevelopment options. In addition, approximately 12 acres of residential land are located behind the main commercial site.
For tenant and operator fit, the existing improvements support an auto body, service, or repair business that needs multiple bays and lift capacity, along with dedicated office and customer areas. For buyers, the configuration provides both an operating automotive facility and additional land components for future planning, while the highway-frontage exposure is positioned to support retail-oriented automotive functions.
The parcels are located on busy Highland Ave in a high-traffic retail corridor with more than 35,000 vehicles per day. The second parcel includes a small residential structure situated on commercially zoned land, which may be of interest to buyers evaluating redevelopment options. In addition, approximately 12 acres of residential land are located behind the main commercial site.
For tenant and operator fit, the existing improvements support an auto body, service, or repair business that needs multiple bays and lift capacity, along with dedicated office and customer areas. For buyers, the configuration provides both an operating automotive facility and additional land components for future planning, while the highway-frontage exposure is positioned to support retail-oriented automotive functions.
Key Highlights
- Approved for auto body use on a high‑traffic retail corridor along Highland Ave
- Automotive facility on the primary retail parcel: 4,488 SF with 6 service bays, 4 lifts, and showroom space
- Includes manager’s office, parts & stock rooms, customer waiting area, and a security system
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
$90,088
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
3.01%
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%
$1,801,760
$1.8M
Cap Rate 7%
$1,286,971
$1.3M
Cap Rate 9%
$1,000,978
$1.0M
Market Conditions
NOI Build-Up for 5,483 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
$131.6K $24.00/SF
− Vacancy
−$2.9K −$0.53/SF
EGI
$128.7K $23.47/SF
− OpEx
−$38.6K −$7.04/SF
NOI
$90.1K $16.43/SF
Area
Essex County, MA
Vacancy
2.20%
Lease Rate
$24.00 /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%
$1,801,760
Cap Rate 7%
$1,286,971
Cap Rate 9%
$1,000,978
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.50M
NOI $90,088 @ 7.0% cap · market cap 3.01%
Second Best
Industrial
$833.2K
$729.0K – $972.0K
NOI $58,322 @ 7.0% cap · market cap 1.95%
Theoretical Best
Office A
$3.25M
$2.84M – $3.79M
NOI $227,214 @ 7.0% cap · market cap 7.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Service bays
35,000 VPD
Traffic count
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
373
Businesses Nearby
52k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 87%
Shops & Services 8%
Electronics 5%
The Home Depot
Home Improvements & Furnishings
44,873 visits/mo
0.2 miles
T-Mobile
Electronics
2,721 visits/mo
0.1 miles
Pep Boys Auto Parts & Service
Shops & Services
2,432 visits/mo
0.3 miles
AutoZone
Shops & Services
1,558 visits/mo
0.3 miles
Demographics for 01970, MA
44,451
Population
20,920
Households
2.1
Avg Household Size
39
Median Age
50%
College-Educated
92%
High-School Grad
8.2 sq mi
ZIP Area
5,421
Density / Sq Mi
$85,189
Median Household Income
$52,024
Median Earnings
$1,800
Median Rent
$497,500
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Town Fair Tire — 311 Highland Ave, Salem, MA 01970
- Highland Ave Auto Body — 455 Highland Ave, Salem, MA 01970
- Pep Boys — 232 Highland Ave, Salem, MA 01970
- jays auto tuning — 56 Swampscott Rd, Salem, MA 01970
- Salem High School Automotive Center — 77 Willson St, Salem, MA 01970
Frequently Asked Questions
What type of property is this?
Auto shop - Approved for auto body use, this automotive facility features six service bays, lifts, and showroom space on high-traffic frontage.
Where is this auto shop located?
The property is located at 296 & 288 Highland Ave Salem, MA.
What is the asking price?
The asking price for this property is $2,995,000.
What are key features of this property?
This property features: Approved for auto body use on a high‑traffic retail corridor along Highland Ave; Automotive facility on the primary retail parcel: 4,488 SF with 6 service bays, 4 lifts, and showroom space; Includes manager’s office, parts & stock rooms, customer waiting area, and a security system
