Historic Brick Seven-Unit
For Sale
$2,310,000
401 Essex, Salem, MA 01970
Seven residential units in a renovated 1815 brick building with off-street parking for up to six vehicles.
Property Size4,997 SF
Days on Market59
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
Multifamily Units
7
Taxes and HOA fees
Annual Taxes
$17,770
Amenities
off-street parking
Building Details
Building Size
4,997 SF
Year Built
1815
Tenancy
Multi
Listing Agency:
Little & Co., REALTORS
(978) 973-7277
Listed By:
Francesca Little
Source:
Donnellyandco
Added: Jun 15
Changed: Aug 8
Last Checked: Aug 11 at 12:38PM
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 Captain Nathaniel Osgood House offers a unique ownership opportunity in a renovated brick seven-family property built in 1815. The building is configured with three one-bedroom units, one two-bedroom unit, and two one-plus-bedroom units. Period details are highlighted throughout, including antique fireplaces and hardwood flooring, along with modern upgrades such as granite countertops, stainless steel appliances, new bathrooms, updated electrical service, and efficient Navien heating systems.
Off-street parking is available for up to six vehicles, and a detached two-story carriage house at the rear of the property provides additional income. The property is described as having tenants responsible for heat, hot water (HW), and electric.
For additional operating details, including income and expenses, please refer to the attached rent roll and expense information.
Off-street parking is available for up to six vehicles, and a detached two-story carriage house at the rear of the property provides additional income. The property is described as having tenants responsible for heat, hot water (HW), and electric.
For additional operating details, including income and expenses, please refer to the attached rent roll and expense information.
Key Highlights
- Historic Captain Nathaniel Osgood House built in 1815, brick seven‑family property in Salem’s McIntire District
- Unit mix: 3 one‑bedroom, 1 two‑bedroom, and 2 one‑plus‑bedroom units, each with antique fireplaces and hardwood flooring
- Renovated throughout 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
Multi-tenant
Tenancy
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 - Seven residential units in a renovated 1815 brick building with off-street parking for up to six vehicles.
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 Captain Nathaniel Osgood House built in 1815, brick seven‑family property in Salem’s McIntire District; Unit mix: 3 one‑bedroom, 1 two‑bedroom, and 2 one‑plus‑bedroom units, each with antique fireplaces and hardwood flooring; Renovated throughout with granite countertops, stainless steel appliances, new bathrooms, and updated electrical service
