Wellesley Square Multifamily Investment
For Sale
$3,400,000
5-7 Abbott Street, Wellesley, MA 02482
Two-building multifamily property in Wellesley Square, steps from amenities.
Property Size10,318 SF
Price / SF$329.52
Days on Market308
Property Features for 5-7 Abbott Street
General Information
Standard status
Active
Size
10,318 SF
Total Parking Spaces
7
Property subtype
Multi-Family
Zoning
c
Taxes and HOA fees
Annual Taxes
$36,267
Building Details
Building Size
10,318 SF
Year Built
1900
Stories
5
Listing Agency:
Atlantic Properties
(978) 578-5013
Listed By:
Chris Bernier · License #455023208
(978) 578-5013
Source:
Churchillprop
Added: Oct 20, 2025
Changed: Aug 23
Last Checked: Aug 22 at 9:05AM
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 Atlantic Properties
Investment Insights
Based on property information with market context.
This multifamily property, offered for the first time in almost 80 years, features two buildings with a total of 7 or 8 units. Situated on a quiet street in Wellesley Square, it provides access to restaurants, boutique shops, the Commuter Rail, Wellesley College, and the Wellesley Library. The location offers access to Routes 16, 9, 95, and the Mass Pike. This property presents opportunities for investors or owner-occupants, with potential for long-term income and upside. It can be used as a rental property or for conversion.
Key Highlights
- Prime Wellesley Square location, steps from restaurants, shops, Commuter Rail, Wellesley College, and the library.
- Rare investment opportunity: two buildings with 7/8 units offered for the first time in almost 80 years.
- Excellent long‑term income potential and possibilities for investors or owner‑occupants.
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
$170,536
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
5.02%
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%
$3,410,720
$3.4M
Cap Rate 7%
$2,436,229
$2.4M
Cap Rate 9%
$1,894,844
$1.9M
Market Conditions
NOI Build-Up for 10,318 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
$328.1K $31.80/SF
− Vacancy
−$18.0K −$1.75/SF
EGI
$310.1K $30.05/SF
− OpEx
−$139.5K −$13.52/SF
NOI
$170.5K $16.53/SF
Area
Norfolk County, MA
Vacancy
5.50%
Lease Rate
$31.80 /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%
$3,410,720
Cap Rate 7%
$2,436,229
Cap Rate 9%
$1,894,844
Alternative Uses
Best Use
Apartment 5plus
$2.44M
$2.13M – $2.84M
NOI $170,536 @ 7.0% cap · market cap 5.02%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.11M
$5.34M – $7.13M
NOI $427,575 @ 7.0% cap · market cap 12.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,376
Businesses Nearby
Explore this area
Business Placement
Demographics for 02482, MA
10,710
Population
4,249
Households
2.5
Avg Household Size
44
Median Age
83%
College-Educated
99%
High-School Grad
3.7 sq mi
ZIP Area
2,895
Density / Sq Mi
$240,069
Median Household Income
$109,805
Median Earnings
$2,674
Median Rent
$1,255,200
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 - Two-building multifamily property in Wellesley Square, steps from amenities.
Where is this apartment building located?
The property is located at 5-7 Abbott Street Wellesley, MA.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: Prime Wellesley Square location, steps from restaurants, shops, Commuter Rail, Wellesley College, and the library.; Rare investment opportunity: two buildings with 7/8 units offered for the first time in almost 80 years.; Excellent long‑term income potential and possibilities for investors or owner‑occupants.
