Renovated Six-Unit Apartment
For Sale
$1,350,000
35 Lafayette St, Worcester, MA 01608
Fully renovated apartments with separately metered utilities and off-street parking.
Property Size6,576 SF
Days on Market153
Property Features for 35 Lafayette St
General Information
Standard status
Active
Size
6,576 SF
Property subtype
Multifamily
Occupancy
100%
Amenities
Upon stabilization, this investment can yield a 7.93% Cap Rate and 10.13% Cash-on-Cash Return (75% LTV, 6% IR, 10 YR Term, 30 YR Am)
Property is under a ten minute walk to Polar Park/Kelley Square, putting tenants in close proximity to Worcester's live-work-play hub, which stands to sustain rental demand.
Worcester ranks as one of the most competitive rental markets in the U.S, supporting low vacancy, resilient tenant demand, and long-term rent growth potential.
Building Details
Building Size
6,576 SF
Units
6
Listing Agency:
Boston Office
(617) 896-7200
Listed By:
Matthew Pierce · License #MA: 9506948
(617) 896-7214
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 30
Last Checked: Aug 30 at 7:13AM
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 Boston Office
Investment Insights
Based on property information with market context.
This six-unit apartment building contains three 3-bedroom, 1-bath residences and three 1-bedroom, 1-bath residences across more than 4,500 square feet of rentable area. The property has been fully renovated, including improvements to every unit, electrical and plumbing systems, and the driveway. Off-street parking is provided, and utilities are separately metered. The asset is delivered vacant.
Located at 35 Lafayette St in Worcester, Massachusetts, the property is less than a half-mile from Polar Park and Kelley Square. Its stabilized underwriting reflects a 7.93% cap rate.
Located at 35 Lafayette St in Worcester, Massachusetts, the property is less than a half-mile from Polar Park and Kelley Square. Its stabilized underwriting reflects a 7.93% cap rate.
Key Highlights
- Six‑unit apartment building with three 3‑bedroom and three 1‑bedroom units
- More than 4,500 square feet of rentable area
- Full renovation includes all units plus updated electrical and plumbing systems
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
$88,648
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
6.57%
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%
$1,772,960
$1.8M
Cap Rate 7%
$1,266,400
$1.3M
Cap Rate 9%
$984,978
$985.0K
Market Conditions
NOI Build-Up for 6,576 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
$169.7K $25.80/SF
− Vacancy
−$8.5K −$1.29/SF
EGI
$161.2K $24.51/SF
− OpEx
−$72.5K −$11.03/SF
NOI
$88.6K $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%
$1,772,960
Cap Rate 7%
$1,266,400
Cap Rate 9%
$984,978
Alternative Uses
Best Use
Apartment 5plus
$1.27M
$1.11M – $1.48M
NOI $88,648 @ 7.0% cap · market cap 6.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.19M
$1.92M – $2.56M
NOI $153,645 @ 7.0% cap · market cap 11.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,933
Businesses Nearby
Explore this area
Business Placement
Demographics for 01608, MA
4,996
Population
2,565
Households
1.9
Avg Household Size
28
Median Age
29%
College-Educated
74%
High-School Grad
0.5 sq mi
ZIP Area
9,992
Density / Sq Mi
$45,962
Median Household Income
$36,596
Median Earnings
$1,461
Median Rent
$117,100
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 - Fully renovated apartments with separately metered utilities and off-street parking.
Where is this apartment building located?
The property is located at 35 Lafayette St Worcester, MA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Six‑unit apartment building with three 3‑bedroom and three 1‑bedroom units; More than 4,500 square feet of rentable area; Full renovation includes all units plus updated electrical and plumbing systems
