3-Unit Property with
For Sale
$749,000
518 Grafton Street, Worcester, MA 01604
Residential units feature gas heat, eat-in kitchens, hardwood and tile finishes, and individual laundry hookups.
Property Size4,035 SF
Price / SF$185.63
Days on Market86
Property Features for 518 Grafton Street
General Information
Standard status
Active
Size
4,035 SF
Property subtype
Multi-family
Site & Location
Road Access
Yes
Utilities to Site
Yes
Units
Unit Mix
3 x 3BR
Multifamily Units
3
Amenities
off-street parking
laundry hookups
Building Details
Year Built
1920
Buildings
1
Tenancy
Multi
Listing Agency:
The DiRoberto Group Inc.
(413) 717-0635
Listed By:
Daniel DiRoberto
(508) 823-9400
Source:
Ballowhutchinsonrealestate
Added: Jun 6
Changed: Aug 29
Last Checked: Jun 15 at 12:05PM
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 The DiRoberto Group Inc.
Investment Insights
Based on property information with market context.
Built in 1920, this 4,035-square-foot triplex contains three six-room, three-bedroom units. Each apartment includes living and dining areas, an eat-in kitchen, hardwood flooring, tile, and laundry hookups. Gas heat serves all three units, and the property includes off-street parking.
The first-floor apartment is vacant and has 1.5 bathrooms, while the upper units are occupied under leases ending 1/31/27. Recent improvements include a new roof completed in 2024, a new main stack installed in 2025, and one new water tank. Unit 1 also has a lead certificate.
The first-floor apartment is vacant and has 1.5 bathrooms, while the upper units are occupied under leases ending 1/31/27. Recent improvements include a new roof completed in 2024, a new main stack installed in 2025, and one new water tank. Unit 1 also has a lead certificate.
Key Highlights
- 3‑unit triplex with 4,035 square feet, built in 1920
- Each unit offers 6 rooms and 3 bedrooms
- Off‑street parking included
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
$59,255
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
7.91%
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%
$1,185,100
$1.2M
Cap Rate 7%
$846,500
$846.5K
Cap Rate 9%
$658,389
$658.4K
Market Conditions
NOI Build-Up for 4,035 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
$89.6K $22.20/SF
− Vacancy
−$4.9K −$1.22/SF
EGI
$84.7K $20.98/SF
− OpEx
−$25.4K −$6.29/SF
NOI
$59.3K $14.69/SF
Area
Worcester, MA
Vacancy
5.50%
Lease Rate
$22.20 /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%
$1,185,100
Cap Rate 7%
$846,500
Cap Rate 9%
$658,389
Alternative Uses
Best Use
Multifamily LT 5
$846.5K
$740.7K – $987.6K
NOI $59,255 @ 7.0% cap · market cap 7.91%
Second Best
Apartment 5plus
$777.1K
$679.9K – $906.6K
NOI $54,394 @ 7.0% cap · market cap 7.26%
Theoretical Best
Office A
$1.35M
$1.18M – $1.57M
NOI $94,276 @ 7.0% cap · market cap 12.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
645
Businesses Nearby
Explore this area
Business Placement
Demographics for 01604, MA
41,301
Population
18,166
Households
2.3
Avg Household Size
37
Median Age
31%
College-Educated
86%
High-School Grad
6.6 sq mi
ZIP Area
6,258
Density / Sq Mi
$72,911
Median Household Income
$45,596
Median Earnings
$1,570
Median Rent
$321,900
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?
Triplex - Residential units feature gas heat, eat-in kitchens, hardwood and tile finishes, and individual laundry hookups.
Where is this triplex located?
The property is located at 518 Grafton Street Worcester, MA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3‑unit triplex with 4,035 square feet, built in 1920; Each unit offers 6 rooms and 3 bedrooms; Off‑street parking included
