Two-Family Residential
For Sale
$900,000
Pending
38-40 Pequossette St, Watertown, MA 02472
Two spacious apartments with porches, a spacious yard, and a partially finished lower level for flexible use.
Property Size2,717 SF
Days on Market55
Property Features for 38-40 Pequossette St
General Information
Standard status
Pending
Size
2,717 SF
Total Parking Spaces
6
Property subtype
Multifamily
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$12,867
Building Details
Building Size
2,717 SF
Year Built
1923
Listing Agency:
eXp Realty LLC - Corporate Office
Listed By:
The Mutlu Group · License #2013009293
(404) 689-4408
Source:
Classifiedrealtygroup
Added: Jul 12
Changed: Aug 8
Last Checked: Jul 23 at 2:42AM
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 eXp Realty LLC - Corporate Office
Investment Insights
Based on property information with market context.
This two-family residential property features two spacious apartments plus a partially finished lower level, offering flexible space and multiple ways to use the home. Unit 1 includes 2 bedrooms and 1 bathroom. Unit 2 has a similar layout with additional finished space on the top floor. The home also includes 3 porches and a spacious yard.
Located on tree-lined Pequossette Street, the property sits between Watertown Square and Arsenal Yards. It is near restaurants, shops, parks, public transportation, and commuter routes.
Offered for sale with the option to keep the property as-is with some improvements and collect rent, or renovate to customize and potentially add value through updates and expansion.
Located on tree-lined Pequossette Street, the property sits between Watertown Square and Arsenal Yards. It is near restaurants, shops, parks, public transportation, and commuter routes.
Offered for sale with the option to keep the property as-is with some improvements and collect rent, or renovate to customize and potentially add value through updates and expansion.
Key Highlights
- 2‑family house built in 1923 with two spacious apartments plus a partially finished lower level
- Unit 1 offers 2 bedrooms and 1 bathroom
- Unit 2 has a similar layout and includes additional finished space on the top floor
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
$57,493
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
6.39%
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%
$1,149,860
$1.1M
Cap Rate 7%
$821,329
$821.3K
Cap Rate 9%
$638,811
$638.8K
Market Conditions
NOI Build-Up for 2,717 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
$86.4K $31.80/SF
− Vacancy
−$4.3K −$1.57/SF
EGI
$82.1K $30.23/SF
− OpEx
−$24.6K −$9.07/SF
NOI
$57.5K $21.16/SF
Area
Middlesex County, MA
Vacancy
4.94%
Lease Rate
$31.80 /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%
$1,149,860
Cap Rate 7%
$821,329
Cap Rate 9%
$638,811
Alternative Uses
Best Use
Multifamily LT 5
$821.3K
$718.7K – $958.2K
NOI $57,493 @ 7.0% cap · market cap 6.39%
Second Best
Apartment 5plus
$772.3K
$675.7K – $901.0K
NOI $54,059 @ 7.0% cap · market cap 6.01%
Theoretical Best
Office A
$1.61M
$1.41M – $1.88M
NOI $112,592 @ 7.0% cap · market cap 12.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,040
Businesses Nearby
Explore this area
Business Placement
Demographics for 02472, MA
35,392
Population
17,069
Households
2.1
Avg Household Size
39
Median Age
67%
College-Educated
95%
High-School Grad
4.0 sq mi
ZIP Area
8,848
Density / Sq Mi
$123,383
Median Household Income
$77,537
Median Earnings
$2,356
Median Rent
$737,600
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?
Duplex - Two spacious apartments with porches, a spacious yard, and a partially finished lower level for flexible use.
Where is this duplex located?
The property is located at 38-40 Pequossette St Watertown, MA.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 2‑family house built in 1923 with two spacious apartments plus a partially finished lower level; Unit 1 offers 2 bedrooms and 1 bathroom; Unit 2 has a similar layout and includes additional finished space on the top floor
