Restored Mixed-Use
New
For Sale
$897,000
406 Lincoln Ave, Saugus, MA 01906
Retail space, a two-bedroom apartment, exterior storage, and on-site parking are included.
Property Size3,755 SF
Days on Market2
Property Features for 406 Lincoln Ave
General Information
Standard status
Active
Size
3,755 SF
Property subtype
Commercial
Site & Location
Highway Access
Yes
Public Transit
Yes
Units
Unit Mix
1 x 2BR
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$5,692
Amenities
wrap-around porch
exterior storage
alarm system
Building Details
Building Size
3,755 SF
Year Built
1800
Buildings
1
Tenancy
Multi
Listing Agency:
(617) 293-1270
Listed By:
Diane Cambria
(617) 293-1270
Source:
Elliman
Added: Aug 11
Changed: Aug 12
Last Checked: Aug 12 at 8:48AM
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 Diane Cambria
Investment Insights
Based on property information with market context.
This mixed-use property at 406 Lincoln Ave combines a retail space with a separate-entry second-floor two-bedroom apartment. The apartment is income-producing and will be delivered vacant. The retail area has been designed for its current business, while newer systems, an alarm system, exterior storage, and on-site parking add practical functionality.
Built in 1800 and extensively restored, the building retains its older exterior character, including a wraparound porch. The property is in downtown Saugus just off Route 1, with access that supports visits to both the commercial and residential portions. The combination of storefront space and a separate apartment creates a straightforward mixed-use configuration for an owner-user or other commercial property buyer.
Built in 1800 and extensively restored, the building retains its older exterior character, including a wraparound porch. The property is in downtown Saugus just off Route 1, with access that supports visits to both the commercial and residential portions. The combination of storefront space and a separate apartment creates a straightforward mixed-use configuration for an owner-user or other commercial property buyer.
Key Highlights
- Separate‑entry second‑floor 2 br. income‑producing rental apartment, delivered vacant
- Retail space designed for its current business
- Building systems are in newer condition
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
$76,039
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
8.48%
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%
$1,520,780
$1.5M
Cap Rate 7%
$1,086,271
$1.1M
Cap Rate 9%
$844,878
$844.9K
Market Conditions
NOI Build-Up for 3,755 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
$135.2K $36.00/SF
− Vacancy
−$13.5K −$3.60/SF
EGI
$121.7K $32.40/SF
− OpEx
−$45.6K −$12.15/SF
NOI
$76.0K $20.25/SF
Area
Essex County, MA
Vacancy
10.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,520,780
Cap Rate 7%
$1,086,271
Cap Rate 9%
$844,878
Alternative Uses
Best Use
Mixed Use
$1.09M
$950.5K – $1.27M
NOI $76,039 @ 7.0% cap · market cap 8.48%
Second Best
Retail
$881.4K
$771.2K – $1.03M
NOI $61,696 @ 7.0% cap · market cap 6.88%
Theoretical Best
Office A
$2.22M
$1.95M – $2.59M
NOI $155,606 @ 7.0% cap · market cap 17.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
415
Businesses Nearby
12k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 56%
Dining 44%
7-Eleven
Shops & Services
6,866 visits/mo
0.1 miles
Dunkin' Donuts
Dining
5,449 visits/mo
0.2 miles
Demographics for 01906, MA
28,619
Population
11,259
Households
2.5
Avg Household Size
45
Median Age
31%
College-Educated
91%
High-School Grad
11.6 sq mi
ZIP Area
2,467
Density / Sq Mi
$100,819
Median Household Income
$52,189
Median Earnings
$1,982
Median Rent
$589,500
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Retail space, a two-bedroom apartment, exterior storage, and on-site parking are included.
Where is this mixed-use property located?
The property is located at 406 Lincoln Ave Saugus, MA.
What is the asking price?
The asking price for this property is $897,000.
What are key features of this property?
This property features: Separate‑entry second‑floor 2 br. income‑producing rental apartment, delivered vacant; Retail space designed for its current business; Building systems are in newer condition
