Historic Five-Residence Apartment
New
For Sale
$1,875,000
393 Essex Street, Salem, MA 01970
Renovated in 2022, the property combines individually metered utilities with separate HVAC and hot-water systems.
Property Size5,345 SF
Price / SF$350.80
Days on Market4
Property Features for 393 Essex Street
General Information
Standard status
Active
Size
5,345 SF
Property subtype
Multi-family
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Units
Unit Mix
1 x 2BR/2BA, 4 x 1BR/1BA
Multifamily Units
5
Additional Details
Gross Income
$160,000
Sprinkler System
Yes
Building Details
Year Built
1775
Year Renovated
2022
Buildings
1
Listing Agency:
Gibson Sotheby's International Realty
Listed By:
Michael Selbst · License #9049869
(617) 504-9159
Source:
Thecharlesrealty
Added: Sep 20
Changed: Sep 22
Last Checked: Sep 22 at 1:32PM
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 Gibson Sotheby's International Realty
Investment Insights
Based on property information with market context.
This 5,345-square-foot apartment building dates to 1775 and was renovated to the studs in 2022. The property contains five residences, including a substantial first-floor unit with two ensuite bedrooms, living and dining rooms, a cook’s kitchen, and access to a bluestone patio, lawn, and private parking. Four additional one-bedroom apartments occupy the upper levels. Historic interior features include a three-story Federal staircase, wainscoting, paneled walls, and original interior shutters.
Each residence has separately metered gas and electric service, along with its own HVAC and hot-water equipment. The building is fully sprinklered and fire monitored and carries B1 zoning. It is located in Salem’s McIntire Historic District, less than 30 seconds from Chestnut Street and near downtown restaurants, shops, and commuter rail.
Each residence has separately metered gas and electric service, along with its own HVAC and hot-water equipment. The building is fully sprinklered and fire monitored and carries B1 zoning. It is located in Salem’s McIntire Historic District, less than 30 seconds from Chestnut Street and near downtown restaurants, shops, and commuter rail.
Key Highlights
- Five residences, including one two‑bedroom first‑floor unit and four one‑bedroom apartments
- 5,345 square feet on a property dating to 1775
- Renovated to the studs in 2022
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
$81,278
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
4.33%
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%
$1,625,560
$1.6M
Cap Rate 7%
$1,161,114
$1.2M
Cap Rate 9%
$903,089
$903.1K
Market Conditions
NOI Build-Up for 5,345 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
$153.9K $28.80/SF
− Vacancy
−$6.2K −$1.15/SF
EGI
$147.8K $27.65/SF
− OpEx
−$66.5K −$12.44/SF
NOI
$81.3K $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%
$1,625,560
Cap Rate 7%
$1,161,114
Cap Rate 9%
$903,089
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.02M – $1.35M
NOI $81,278 @ 7.0% cap · market cap 4.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.16M
$2.77M – $3.69M
NOI $221,495 @ 7.0% cap · market cap 11.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
5
Residential units
Yes
Sprinkler system
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
2,184
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Apartment building - Renovated in 2022, the property combines individually metered utilities with separate HVAC and hot-water systems.
Where is this apartment building located?
The property is located at 393 Essex Street Salem, MA.
What is the asking price?
The asking price for this property is $1,875,000.
What are key features of this property?
This property features: Five residences, including one two‑bedroom first‑floor unit and four one‑bedroom apartments; 5,345 square feet on a property dating to 1775; Renovated to the studs in 2022
