Five-Unit Apartment
For Sale
$895,000
71 Esther Street, Worcester, MA 01607
Two-building multifamily property with upgraded kitchens, baths, appliances, siding, roofing, and utility systems.
Property Size3,000 SF
Price / SF$298.33
Days on Market68
Property Features for 71 Esther Street
General Information
Standard status
Active
Size
3,000 SF
Property subtype
Multi-family
Units
Unit Mix
3 x 2BR, 2 x 1BR
Multifamily Units
5
Additional Details
Highway Access
Yes
Building Details
Year Built
1900
Buildings
2
Listing Agency:
RE/MAX Vision
Listed By:
Richard J. Trifone
(617) 875-4950
Source:
Sarkisboston
Added: Jun 25
Changed: Aug 30
Last Checked: Aug 30 at 5:22PM
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 RE/MAX Vision
Investment Insights
Based on property information with market context.
This apartment property comprises two buildings with five residential units. The front structure contains three two-bedroom apartments, while the rear building at 71½ Esther St. has two one-bedroom apartments. Recent work in the rear building includes new siding completed in 2024, a poured concrete basement floor, replacement water heaters, renovated kitchens and bathrooms, new appliances, a new roof installed in 2025, and a sewer-line replacement completed in 2023. Units 2 and 3 in the front building have received new gas stoves and refrigerators. Originally built in 1900, the property is near public parks, a swimming pool, shopping, and dining, with access to major commuter routes, highways, and the Massachusetts Turnpike.
Key Highlights
- Five‑family property with two separate buildings on one lot
- Front building includes three 2‑bedroom units
- Rear building at 71½ Esther St. contains two 1‑bedroom units
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
$40,442
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
4.52%
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%
$808,840
$808.8K
Cap Rate 7%
$577,743
$577.7K
Cap Rate 9%
$449,356
$449.4K
Market Conditions
NOI Build-Up for 3,000 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
$77.4K $25.80/SF
− Vacancy
−$3.9K −$1.29/SF
EGI
$73.5K $24.51/SF
− OpEx
−$33.1K −$11.03/SF
NOI
$40.4K $13.48/SF
Area
Worcester, MA
Vacancy
5.00%
Lease Rate
$25.80 /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%
$808,840
Cap Rate 7%
$577,743
Cap Rate 9%
$449,356
Alternative Uses
Best Use
Apartment 5plus
$577.7K
$505.5K – $674.0K
NOI $40,442 @ 7.0% cap · market cap 4.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.00M
$876.2K – $1.17M
NOI $70,093 @ 7.0% cap · market cap 7.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
445
Businesses Nearby
Explore this area
Business Placement
Demographics for 01607, MA
9,378
Population
4,172
Households
2.2
Avg Household Size
36
Median Age
29%
College-Educated
85%
High-School Grad
3.0 sq mi
ZIP Area
3,126
Density / Sq Mi
$66,365
Median Household Income
$46,300
Median Earnings
$1,356
Median Rent
$341,300
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 with upgraded kitchens, baths, appliances, siding, roofing, and utility systems.
Where is this apartment building located?
The property is located at 71 Esther Street Worcester, MA.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Five‑family property with two separate buildings on one lot; Front building includes three 2‑bedroom units; Rear building at 71½ Esther St. contains two 1‑bedroom units
