Triplex with Detached Two-Bay
New
For Sale
$474,900
56 Water Street, Southbridge, MA 01550
Three-bedroom units feature enclosed porches, oversized windows, and similar layouts.
Property Size3,414 SF
Price / SF$139.10
Days on Market7
Property Features for 56 Water Street
General Information
Standard status
Active
Size
3,414 SF
Property subtype
Multi-family
Occupancy
100%
Units
Unit Mix
3 x 3BR/1BA
Multifamily Units
3
Amenities
coin-operated laundry
Building Details
Year Built
1900
Listing Agency:
Excelsior Realty
Listed By:
Robert Bissonnette · License #453014206
(508) 981-3734
Source:
Longwoodresidential
Added: Sep 7
Changed: Sep 13
Last Checked: Sep 13 at 9:07AM
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 Excelsior Realty
Investment Insights
Based on property information with market context.
The property at 56 Water Street is a three-unit residential building constructed in 1900. Each apartment has approximately 1,150 sq. ft. with three bedrooms, one bathroom, a kitchen, living room, and enclosed porch. Upgraded oversized windows bring additional natural light to the porch areas. A detached two-bay garage and off-street parking are also included.
The basement contains an approximately 650 sq. ft. studio apartment with a full bathroom, providing additional living space within the property. A common-area coin-operated laundry room is located off the first-floor porch. All three primary apartments are currently occupied, and the existing tenants have indicated interest in remaining. The property is situated near schools, shopping, and a hospital, with town services available.
The basement contains an approximately 650 sq. ft. studio apartment with a full bathroom, providing additional living space within the property. A common-area coin-operated laundry room is located off the first-floor porch. All three primary apartments are currently occupied, and the existing tenants have indicated interest in remaining. The property is situated near schools, shopping, and a hospital, with town services available.
Key Highlights
- Three‑unit property with three bedrooms and one bathroom in each main apartment
- Each main unit measures approximately 1,150 sq. ft.
- Basement includes an approximately 650 sq. ft. studio apartment with full bathroom
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
$40,162
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
8.46%
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%
$803,240
$803.2K
Cap Rate 7%
$573,743
$573.7K
Cap Rate 9%
$446,244
$446.2K
Market Conditions
NOI Build-Up for 3,414 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
$75.0K $21.96/SF
− Vacancy
−$1.9K −$0.57/SF
EGI
$73.0K $21.39/SF
− OpEx
−$32.9K −$9.63/SF
NOI
$40.2K $11.76/SF
Area
Worcester County, MA
Vacancy
2.60%
Lease Rate
$21.96 /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%
$803,240
Cap Rate 7%
$573,743
Cap Rate 9%
$446,244
Alternative Uses
Best Use
Multifamily LT 5
$659.3K
$576.9K – $769.2K
NOI $46,149 @ 7.0% cap · market cap 9.72%
Second Best
Apartment 5plus
$573.7K
$502.0K – $669.4K
NOI $40,162 @ 7.0% cap · market cap 8.46%
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,608 @ 7.0% cap · market cap 17.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
634
Businesses Nearby
Explore this area
Business Placement
Demographics for 01550, MA
17,740
Population
7,644
Households
2.3
Avg Household Size
39
Median Age
18%
College-Educated
82%
High-School Grad
20.2 sq mi
ZIP Area
878
Density / Sq Mi
$59,397
Median Household Income
$41,365
Median Earnings
$1,157
Median Rent
$267,000
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?
Triplex - Three-bedroom units feature enclosed porches, oversized windows, and similar layouts.
Where is this triplex located?
The property is located at 56 Water Street Southbridge, MA.
What is the asking price?
The asking price for this property is $474,900.
What are key features of this property?
This property features: Three‑unit property with three bedrooms and one bathroom in each main apartment; Each main unit measures approximately 1,150 sq. ft.; Basement includes an approximately 650 sq. ft. studio apartment with full bathroom
