9-Unit Apartment
New
For Sale
$2,200,000
364-366 Essex Street, Salem, MA 01970
Two-building apartment property with a varied unit mix, off-street parking, and landlord-provided utilities.
Property Size7,033 SF
Lot Size0.13 Acres
Price / SF$243.26
Days on Market3
Property Features for 364-366 Essex Street
General Information
Standard status
Active
Size
7,033 SF
Total Parking Spaces
4
Lot size
0.13 Acres
Property subtype
Multifamily
Units
Unit Mix
1 x 2BR/1BA, 5 x 1BR/1BA, 1 x 2-Room Studio, 2 x Studio
Multifamily Units
9
Additional Details
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$21,830
Building Details
Building Size
7,033 SF
Year Built
1850
Buildings
2
Listing Agency:
Horvath & Tremblay
(978) 406-1789
Listed By:
Stephen Girolamo · License #9552229
Source:
Classifiedrealtygroup
Added: Aug 12
Changed: Aug 14
Last Checked: Aug 14 at 4:18AM
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 Horvath & Tremblay
Investment Insights
Based on property information with market context.
The property at 364-366 Essex Street comprises two buildings with nine residential units and 7,033 square feet of gross living area within 9,044 square feet of gross area. The configuration includes one 2-bedroom/1-bathroom apartment, five 1-bedroom/1-bathroom apartments, one 2-room studio, and two studio units. The 0.13-acre parcel includes four off-street parking spaces.
Located in downtown Salem, the property is positioned within a walkable North Shore apartment market with a diverse employment base and year-round visitor activity. The landlord provides oil-powered heat, electric-powered hot water, common-area electricity, and city water and sewer for all units. Unit electric service is also landlord-provided at 364 Essex Street, while residents at 366 Essex Street pay their own unit electric.
Located in downtown Salem, the property is positioned within a walkable North Shore apartment market with a diverse employment base and year-round visitor activity. The landlord provides oil-powered heat, electric-powered hot water, common-area electricity, and city water and sewer for all units. Unit electric service is also landlord-provided at 364 Essex Street, while residents at 366 Essex Street pay their own unit electric.
Key Highlights
- Nine‑unit configuration with one 2‑bedroom, five 1‑bedroom, one 2‑room studio, and two studio units
- 7,033 square feet of gross living area within 9,044 square feet of gross area
- 0.13‑acre parcel with four off‑street parking spaces
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
$137,527
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
6.25%
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%
$2,750,540
$2.8M
Cap Rate 7%
$1,964,671
$2.0M
Cap Rate 9%
$1,528,078
$1.5M
Market Conditions
NOI Build-Up for 9,044 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
$260.5K $28.80/SF
− Vacancy
−$10.4K −$1.15/SF
EGI
$250.0K $27.65/SF
− OpEx
−$112.5K −$12.44/SF
NOI
$137.5K $15.21/SF
Area
Essex County, MA
Vacancy
4.00%
Lease Rate
$28.80 /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%
$2,750,540
Cap Rate 7%
$1,964,671
Cap Rate 9%
$1,528,078
Alternative Uses
Best Use
Apartment 5plus
$1.96M
$1.72M – $2.29M
NOI $137,527 @ 7.0% cap · market cap 6.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.35M
$4.68M – $6.25M
NOI $374,781 @ 7.0% cap · market cap 17.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
9
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
2,734
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Two-building apartment property with a varied unit mix, off-street parking, and landlord-provided utilities.
Where is this apartment building located?
The property is located at 364-366 Essex Street Salem, MA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Nine‑unit configuration with one 2‑bedroom, five 1‑bedroom, one 2‑room studio, and two studio units; 7,033 square feet of gross living area within 9,044 square feet of gross area; 0.13‑acre parcel with four off‑street parking spaces
