Updated Two-Family
For Sale
$875,000
5 Willow Avenue, Salem, MA 01970
Separate utilities, a one-car garage, driveway, and patio support practical ownership.
Property Size2,229 SF
Price / SF$392.55
Days on Market9
Property Features for 5 Willow Avenue
General Information
Standard status
Active
Size
2,229 SF
Property subtype
Multi-family
Lease Term
[]
Units
Unit Mix
1 x 1BR/1BA, 1 x 4BR/2BA
Multifamily Units
2
Additional Details
Public Transit
Yes
Amenities
patio
Building Details
Year Built
1890
Listing Agency:
Compass
Listed By:
Strobeck Antonell Bull Group
(781) 285-8028
Source:
Yourhomeforsale
Added: Sep 15
Changed: Sep 21
Last Checked: Sep 22 at 5:29PM
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 Compass
Investment Insights
Based on property information with market context.
This updated duplex at 5 Willow Ave includes 2,229 SF of residential space arranged as two separate homes. The first-floor residence has one bedroom and one bathroom. The upper residence occupies two levels and provides four bedrooms, two bathrooms, and a vaulted bonus room. Separate utilities, a one-car garage, driveway, and low-maintenance patio add useful property features. The home was built in 1890 and includes numerous upgrades.
The property is positioned between downtown Salem and Salem State University, with access to downtown shops, restaurants, commuter rail service, and the ferry to Boston. A small neighborhood beach is located at the end of the street. The upper unit is currently vacant and was most recently leased before becoming available.
The property is positioned between downtown Salem and Salem State University, with access to downtown shops, restaurants, commuter rail service, and the ferry to Boston. A small neighborhood beach is located at the end of the street. The upper unit is currently vacant and was most recently leased before becoming available.
Key Highlights
- 2,229 SF duplex with two residential units
- First‑floor unit offers 1 bedroom and 1 bath
- Upper unit spans two levels with 4 bedrooms, 2 baths, and a vaulted bonus room
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
$37,550
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
4.29%
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%
$751,000
$751.0K
Cap Rate 7%
$536,429
$536.4K
Cap Rate 9%
$417,222
$417.2K
Market Conditions
NOI Build-Up for 2,229 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
$56.2K $25.20/SF
− Vacancy
−$2.5K −$1.13/SF
EGI
$53.6K $24.07/SF
− OpEx
−$16.1K −$7.22/SF
NOI
$37.6K $16.85/SF
Area
Essex County, MA
Vacancy
4.50%
Lease Rate
$25.20 /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%
$751,000
Cap Rate 7%
$536,429
Cap Rate 9%
$417,222
Alternative Uses
Best Use
Multifamily LT 5
$536.4K
$469.4K – $625.8K
NOI $37,550 @ 7.0% cap · market cap 4.29%
Second Best
Apartment 5plus
$484.2K
$423.7K – $564.9K
NOI $33,895 @ 7.0% cap · market cap 3.87%
Theoretical Best
Office A
$1.32M
$1.15M – $1.54M
NOI $92,369 @ 7.0% cap · market cap 10.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
998
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Duplex - Separate utilities, a one-car garage, driveway, and patio support practical ownership.
Where is this duplex located?
The property is located at 5 Willow Avenue Salem, MA.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 2,229 SF duplex with two residential units; First‑floor unit offers 1 bedroom and 1 bath; Upper unit spans two levels with 4 bedrooms, 2 baths, and a vaulted bonus room
