Income Producing Multi-Family
For Sale
$1,050,000
40-46 Cottage St, Leominster, MA 01453
Two buildings on one lot provide multiple rental units with off-street parking and in-unit washer/dryer hookup availability.
Property Size6,500 SF
Price / SF$161.54
Days on Market86
Property Features for 40-46 Cottage St
General Information
Standard status
Active
Size
6,500 SF
Total Parking Spaces
12
Property subtype
Multi-Family
Zoning
RC
Net Operating Income
$108,000
Additional Details
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$6,658
Amenities
in-unit washer and dryer hookups
off-street parking
Building Details
Building Size
6,500 SF
Year Built
1900
Stories
5
Tenancy
Multi
Listing Agency:
Herion Karbunara
(833) 668-4649
Listed By:
Chris Bernier
(978) 578-5013
Source:
Churchillprop
Added: Jun 12
Changed: Sep 4
Last Checked: Sep 4 at 2:27AM
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 Herion Karbunara
Investment Insights
Based on property information with market context.
This for-sale income property features two separate buildings on one lot. The larger building is a three-family offering spacious 2-bedroom units. The second building is a two-family with a 2-bedroom unit on the first floor and a 1-bedroom unit on the second floor. All units include in-unit washer and dryer hookups.
The property also provides ample off-street parking. Exterior improvements include a brand-new roof on the two-family building and a newer roof on the three-family building that was replaced a few years ago.
Overall, the configuration supports flexible use as a pure investment or an owner-occupy scenario while maintaining rental income from the remaining units.
The property also provides ample off-street parking. Exterior improvements include a brand-new roof on the two-family building and a newer roof on the three-family building that was replaced a few years ago.
Overall, the configuration supports flexible use as a pure investment or an owner-occupy scenario while maintaining rental income from the remaining units.
Key Highlights
- Two buildings on one lot with multiple rental units, plus ample off‑street parking
- Large 3‑family with spacious 2‑bedroom units
- Value‑add potential: 2‑bedroom units in the 3‑family could be converted to 3‑bedroom units with minor modifications
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
Multi-tenant
Tenancy
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 - Two buildings on one lot provide multiple rental units with off-street parking and in-unit washer/dryer hookup availability.
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: Two buildings on one lot with multiple rental units, plus ample off‑street parking; Large 3‑family with spacious 2‑bedroom units; Value‑add potential: 2‑bedroom units in the 3‑family could be converted to 3‑bedroom units with minor modifications
