Well-Maintained Three-Story
For Sale
$850,000
8 Pelham St, Worcester, MA 01609
Three-story multifamily with off-street rear-driveway parking and basement storage with mechanical access.
Property Size4,467 SF
Price / SF$190.28
Days on Market173
Property Features for 8 Pelham St
General Information
Standard status
Active
Size
4,467 SF
Total Parking Spaces
5
Property subtype
Multi-Family
Zoning
RG-5
Net Operating Income
$87,600
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$7,805
Building Details
Building Size
4,467 SF
Year Built
1890
Stories
6
Listing Agency:
Prestige Realty Experts Inc.
(833) 668-4649
Listed By:
Chris Bernier
(978) 578-5013
Source:
Churchillprop
Added: Mar 19
Changed: Sep 6
Last Checked: Sep 6 at 5:37AM
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 Prestige Realty Experts Inc.
Investment Insights
Based on property information with market context.
Well-maintained three-story multifamily property offering functional layouts and comfortable living spaces. The building includes basement space for storage and convenient access to mechanical systems, and off-street parking is available via a rear driveway.
Located in Worcester, the property is described as being near downtown Worcester, major highways, public transportation, hospitals, universities, restaurants, and shopping. WalkScore is listed as 94 (Walker’s Paradise), bikeScore as 52 (Bikeable), and transitScore as 44 (Some Transit).
Located in Worcester, the property is described as being near downtown Worcester, major highways, public transportation, hospitals, universities, restaurants, and shopping. WalkScore is listed as 94 (Walker’s Paradise), bikeScore as 52 (Bikeable), and transitScore as 44 (Some Transit).
Key Highlights
- Well‑maintained three‑story multifamily property built in 1890
- Off‑street parking available via rear driveway
- Basement space provides storage and convenient access to mechanical systems
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
$60,217
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
7.08%
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%
$1,204,340
$1.2M
Cap Rate 7%
$860,243
$860.2K
Cap Rate 9%
$669,078
$669.1K
Market Conditions
NOI Build-Up for 4,467 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
$115.2K $25.80/SF
− Vacancy
−$5.8K −$1.29/SF
EGI
$109.5K $24.51/SF
− OpEx
−$49.3K −$11.03/SF
NOI
$60.2K $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%
$1,204,340
Cap Rate 7%
$860,243
Cap Rate 9%
$669,078
Alternative Uses
Best Use
Apartment 5plus
$860.2K
$752.7K – $1.00M
NOI $60,217 @ 7.0% cap · market cap 7.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.49M
$1.30M – $1.74M
NOI $104,369 @ 7.0% cap · market cap 12.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,596
Businesses Nearby
Explore this area
Business Placement
Demographics for 01609, MA
23,870
Population
9,126
Households
2.6
Avg Household Size
29
Median Age
49%
College-Educated
89%
High-School Grad
3.7 sq mi
ZIP Area
6,451
Density / Sq Mi
$61,411
Median Household Income
$32,399
Median Earnings
$1,212
Median Rent
$422,100
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?
Multifamily property - Three-story multifamily with off-street rear-driveway parking and basement storage with mechanical access.
Where is this multifamily property located?
The property is located at 8 Pelham St Worcester, MA.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Well‑maintained three‑story multifamily property built in 1890; Off‑street parking available via rear driveway; Basement space provides storage and convenient access to mechanical systems
