Historic Seven-Unit Residential
For Sale
$2,310,000
401 Essex, Salem, MA 01970
Brick seven-family property built in 1815 with renovated interiors, off-street parking, and a detached carriage house at the rear.
Property Size4,997 SF
Price / SF$462.28
Days on Market83
Property Features for 401 Essex
General Information
Standard status
Active
Size
4,997 SF
Total Parking Spaces
6
Property subtype
5-9 Family
Additional Details
Business Included
Yes
Multifamily Units
7
Building Details
Year Built
1815
Listing Agency:
Little & Co., REALTORS
(978) 745-4447
Listed By:
Francesca Little · License #9564272
(978) 973-7277
Source:
Lockandkeyre
Added: Jun 15
Changed: Sep 4
Last Checked: Sep 4 at 5:26AM
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 Little & Co., REALTORS
Investment Insights
Based on property information with market context.
Historic brick seven-family building built in 1815, prominently located within Salem’s McIntire District. The property’s unit mix includes three one-bedroom units, one two-bedroom unit, and two one-plus-bedroom units. Interiors feature period details such as antique fireplaces and hardwood flooring. The building has been renovated throughout with granite countertops, stainless steel appliances, new bathrooms, efficient Navien heating systems, and updated electrical service.
Off-street parking is available for up to six vehicles. A detached two-story carriage house at the rear of the property provides additional income.
All tenants pay for heat, hot water, and electric. The seller notes that a rent roll and expenses are available in the attached PDF.
Off-street parking is available for up to six vehicles. A detached two-story carriage house at the rear of the property provides additional income.
All tenants pay for heat, hot water, and electric. The seller notes that a rent roll and expenses are available in the attached PDF.
Key Highlights
- Historic brick seven‑family property built in 1815 in Salem’s McIntire District
- Unit mix: three 1‑bedroom units, one 2‑bedroom unit, and two 1‑plus‑bedroom units
- Renovated interiors with granite countertops, stainless steel appliances, new bathrooms, and updated electrical service
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
$75,986
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
3.29%
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%
$1,519,720
$1.5M
Cap Rate 7%
$1,085,514
$1.1M
Cap Rate 9%
$844,289
$844.3K
Market Conditions
NOI Build-Up for 4,997 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
$143.9K $28.80/SF
− Vacancy
−$5.8K −$1.15/SF
EGI
$138.2K $27.65/SF
− OpEx
−$62.2K −$12.44/SF
NOI
$76.0K $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%
$1,519,720
Cap Rate 7%
$1,085,514
Cap Rate 9%
$844,289
Alternative Uses
Best Use
Apartment 5plus
$1.09M
$949.8K – $1.27M
NOI $75,986 @ 7.0% cap · market cap 3.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.96M
$2.59M – $3.45M
NOI $207,074 @ 7.0% cap · market cap 8.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,551
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 - Brick seven-family property built in 1815 with renovated interiors, off-street parking, and a detached carriage house at the rear.
Where is this apartment building located?
The property is located at 401 Essex Salem, MA.
What is the asking price?
The asking price for this property is $2,310,000.
What are key features of this property?
This property features: Historic brick seven‑family property built in 1815 in Salem’s McIntire District; Unit mix: three 1‑bedroom units, one 2‑bedroom unit, and two 1‑plus‑bedroom units; Renovated interiors with granite countertops, stainless steel appliances, new bathrooms, and updated electrical service
