Two-Building Residential Income
For Sale
$1,050,000
40-46 Cottage St, Leominster, MA 01453
Property includes a 3-family and 2-family on one lot, with in-unit washer/dryer hookups and off-street parking.
Property Size6,500 SF
Days on Market54
Property Features for 40-46 Cottage St
General Information
Standard status
Active
Size
6,500 SF
Property subtype
Investment
Additional Details
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$6,658
Building Details
Building Size
6,500 SF
Year Built
1900
Stories
5
Units
5
Listing Agency:
Property Investors & Advisors, LLC
(978) 906-5225
Listed By:
Nicolas Berthet-Garcia
(978) 906-5225
Source:
Elliman
Added: Jun 17
Changed: Aug 7
Last Checked: Aug 8 at 1:35PM
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 Property Investors & Advisors, LLC
Investment Insights
Based on property information with market context.
This residential income property features two buildings on one lot, including a 3-family and a 2-family. The 3-family offers spacious 2-bedroom units, while the 2-family includes a 2-bedroom unit on the first floor and a 1-bedroom unit on the second floor. All units are supported by in-unit washer and dryer hookups. Exterior improvements include a brand-new roof on the 2-family and a newer roof on the 3-family installed a few years ago, along with ample off-street parking.
The property is located at 40–44 Cottage St in Leominster, Massachusetts. Walk and transit scores are described as somewhat walkable and somewhat transit, and bike score is noted as somewhat bikeable.
The property is located at 40–44 Cottage St in Leominster, Massachusetts. Walk and transit scores are described as somewhat walkable and somewhat transit, and bike score is noted as somewhat bikeable.
Key Highlights
- Year built 1900: two separate buildings on one lot, including a 3‑family and a 2‑family
- 3‑family offers spacious 2‑bedroom units; could be converted into 3‑bedroom units with minor modifications
- 2‑family layout: 2‑bedroom on the first floor and 1‑bedroom on the second 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
$87,865
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
8.37%
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%
$1,757,300
$1.8M
Cap Rate 7%
$1,255,214
$1.3M
Cap Rate 9%
$976,278
$976.3K
Market Conditions
NOI Build-Up for 6,500 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
$128.7K $19.80/SF
− Vacancy
−$3.2K −$0.49/SF
EGI
$125.5K $19.31/SF
− OpEx
−$37.7K −$5.79/SF
NOI
$87.9K $13.52/SF
Area
Worcester County, MA
Vacancy
2.47%
Lease Rate
$19.80 /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%
$1,757,300
Cap Rate 7%
$1,255,214
Cap Rate 9%
$976,278
Alternative Uses
Best Use
Multifamily LT 5
$1.26M
$1.10M – $1.46M
NOI $87,865 @ 7.0% cap · market cap 8.37%
Second Best
Apartment 5plus
$1.09M
$955.8K – $1.27M
NOI $76,466 @ 7.0% cap · market cap 7.28%
Theoretical Best
Office A
$2.22M
$1.94M – $2.59M
NOI $155,376 @ 7.0% cap · market cap 14.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
1,158
Businesses Nearby
Explore this area
Business Placement
Demographics for 01453, MA
43,752
Population
18,895
Households
2.3
Avg Household Size
41
Median Age
32%
College-Educated
90%
High-School Grad
26.4 sq mi
ZIP Area
1,657
Density / Sq Mi
$82,098
Median Household Income
$52,247
Median Earnings
$1,282
Median Rent
$345,900
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?
Triplex - Property includes a 3-family and 2-family on one lot, with in-unit washer/dryer hookups and off-street parking.
Where is this triplex located?
The property is located at 40-46 Cottage St Leominster, MA.
What is the asking price?
The asking price for this property is $1,050,000.
What are key features of this property?
This property features: Year built 1900: two separate buildings on one lot, including a 3‑family and a 2‑family; 3‑family offers spacious 2‑bedroom units; could be converted into 3‑bedroom units with minor modifications; 2‑family layout: 2‑bedroom on the first floor and 1‑bedroom on the second floor
