Somerville Multifamily Investment
For Sale
$1,850,000
3 Lee St, Somerville, MA 02145
Six-unit building near Gilman Square with leases through 2027.
Property Size3,425 SF
Days on Market112
Property Features for 3 Lee St
General Information
Standard status
Active
Size
3,425 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$18,801
Building Details
Building Size
3,425 SF
Year Built
1900
Stories
5
Units
6
Listing Agency:
(617) 634-9665
Listed By:
Maggie Dee + Charles Cherney Team
(617) 634-9665
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 12 at 7:11AM
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 Maggie Dee + Charles Cherney Team
Investment Insights
Based on property information with market context.
This distinctive building, located on a tree-lined street, offers strong curb appeal and undeniable character. The property features six 1-bedroom, 1-bath units. Front and back porches enhance tenant appeal. The building is equipped with central heat and hot water. A paved driveway is included. The property is situated in a prime locale with easy access to the Gilman Square MBTA Green Line Station, connecting to Cambridge, Boston, and beyond. It is also in close proximity to shops, dining, and entertainment. Current lease agreements are in place through May 31, 2027. The location has a bike score of 82, making it very bikeable, a walk score of 92, classifying it as a walker's paradise, and a transit score of 70, indicating excellent transit options.
Key Highlights
- Prime location with easy access to Gilman Square MBTA Green Line Station for convenient commuting.
- Six 1‑bedroom, 1‑bath units offer a strong investment opportunity.
- Current lease agreements in place through May 31, 2027, providing immediate rental income.
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
$68,146
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
3.68%
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%
$1,362,920
$1.4M
Cap Rate 7%
$973,514
$973.5K
Cap Rate 9%
$757,178
$757.2K
Market Conditions
NOI Build-Up for 3,425 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
$130.7K $38.16/SF
− Vacancy
−$6.8K −$1.98/SF
EGI
$123.9K $36.18/SF
− OpEx
−$55.8K −$16.28/SF
NOI
$68.1K $19.90/SF
Area
Middlesex County, MA
Vacancy
5.20%
Lease Rate
$38.16 /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%
$1,362,920
Cap Rate 7%
$973,514
Cap Rate 9%
$757,178
Alternative Uses
Best Use
Apartment 5plus
$973.5K
$851.8K – $1.14M
NOI $68,146 @ 7.0% cap · market cap 3.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.03M
$1.77M – $2.37M
NOI $141,931 @ 7.0% cap · market cap 7.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,157
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?
Apartment building - Six-unit building near Gilman Square with leases through 2027.
Where is this apartment building located?
The property is located at 3 Lee St Somerville, MA.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: Prime location with easy access to Gilman Square MBTA Green Line Station for convenient commuting.; Six 1‑bedroom, 1‑bath units offer a strong investment opportunity.; Current lease agreements in place through May 31, 2027, providing immediate rental income.
