Porter Square Redevelopment
For Sale
$13,000,000
815 Somerville Avenue, Cambridge, MA 02140
Redevelopment opportunity in the heart of Porter Square, Cambridge.
Property Size27,824 SF
Lot Size0.24 Acres
Price / SF$467.22
Days on Market368
Property Features for 815 Somerville Avenue
General Information
Standard status
Active
Size
27,824 SF
Lot size
0.24 Acres
Property subtype
Commercial
Building Details
Year Built
1917
Listing Agency:
Cushman & Wakefield
(617) 204-4134
Listed By:
Christopher Sower
(617) 394-8648
Source:
Unitboston
Added: Aug 29, 2025
Changed: Aug 28
Last Checked: Aug 30 at 6:51PM
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 Cushman & Wakefield
Investment Insights
Based on property information with market context.
Located in the heart of Porter Square in Cambridge, Massachusetts, 815 Somerville Avenue presents an exceptional redevelopment opportunity. The property features a three-story brick building with 27,824 gross square feet and 18 garage parking spaces. It is situated on a 10,442 square foot parcel within the Massachusetts Avenue District, a zoning district that allows up to 12 stories of residential use by-right. The property is located across the street from the MBTA Porter Square Station (Red Line), providing direct access to Harvard, MIT, Kendall Square, and Downtown Boston. The location is surrounded by amenities and cultural activities. Alternative use and value-creation opportunities include ground up redevelopment for residential use, re-tenanting the existing office space, or utilizing the in-place approvals to retrofit the building for lab/R&D use.
Key Highlights
- Prime redevelopment opportunity in the heart of Porter Square, Cambridge.
- Located across the street from the MBTA Porter Square Station (Red Line) for easy access to key areas.
- New zoning allows up to 12 stories of residential use by‑right.
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
$1,076,463
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
8.28%
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%
$21,529,260
$21.5M
Cap Rate 7%
$15,378,043
$15.4M
Cap Rate 9%
$11,960,700
$12.0M
Market Conditions
NOI Build-Up for 27,824 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
$1.61M $57.96/SF
− Vacancy
−$177.4K −$6.38/SF
EGI
$1.44M $51.58/SF
− OpEx
−$358.8K −$12.90/SF
NOI
$1.08M $38.69/SF
Area
Cambridge, MA
Vacancy
11.00%
Lease Rate
$57.96 /SF/Yr
Expense Ratio
25.00%
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%
$21,529,260
Cap Rate 7%
$15,378,043
Cap Rate 9%
$11,960,700
Alternative Uses
Best Use
Office B
$15.38M
$13.46M – $17.94M
NOI $1,076,463 @ 7.0% cap · market cap 8.28%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$21.45M
$18.77M – $25.03M
NOI $1,501,566 @ 7.0% cap · market cap 11.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,660
Businesses Nearby
Explore this area
Business Placement
Demographics for 02140, MA
21,447
Population
11,117
Households
1.9
Avg Household Size
35
Median Age
79%
College-Educated
95%
High-School Grad
1.2 sq mi
ZIP Area
17,873
Density / Sq Mi
$136,382
Median Household Income
$77,506
Median Earnings
$2,581
Median Rent
$1,070,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Redevelopment opportunity in the heart of Porter Square, Cambridge.
Where is this office building located?
The property is located at 815 Somerville Avenue Cambridge, MA.
What is the asking price?
The asking price for this property is $13,000,000.
What are key features of this property?
This property features: Prime redevelopment opportunity in the heart of Porter Square, Cambridge.; Located across the street from the MBTA Porter Square Station (Red Line) for easy access to key areas.; New zoning allows up to 12 stories of residential use by‑right.
