Three-Story Six-Unit Apartment
For Sale
Contact for pricing
86 Hamilton Street, Worcester, MA 01604
Two three-story six-unit buildings offer renovated and non-renovated units with separate utilities and tenant parking.
Property Size12,535 SF
Lot Size0.29 Acres
Price / SF$183.49
Days on Market62
Property Features for 86 Hamilton Street
General Information
Standard status
Active
Size
12,535 SF
Lot size
0.29 Acres
Property subtype
Multifamily
Net Operating Income
$189,685
Additional Details
Highway Access
Yes
Sprinkler System
Yes
Multifamily Units
12
Building Details
Year Built
1920
Buildings
2
Stories
3
Units
12
Listing Agency:
Horvath & Tremblay
(781) 776-4002
Listed By:
Ethan Lazar · License #MA 9582013
Source:
Crexi
Added: Jun 13
Changed: Aug 12
Last Checked: Aug 13 at 7:58AM
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 Horvath & Tremblay
Investment Insights
Based on property information with market context.
The property consists of two three-story, six-unit apartment buildings on a 0.29-acre parcel, containing 12 total units totaling 9,234 square feet of gross living area. The unit mix includes two 3-bedroom/1-bath units, seven 2-bedroom/1-bath units, and three 1-bedroom/1-bath units. One building (90-92 Hamilton) was completely renovated following a fire and is described as sprinklered, with units featuring new kitchens with quartz countertops and stainless-steel appliances, renovated bathrooms, new flooring, and new mechanical systems. The second building (86-88 Hamilton) is described as having clean layouts and newer flooring, though units are not renovated to the same extent.
All units are separately metered for heat, hot water, and electricity, with utilities paid directly by tenants. The property includes ample off-street parking for tenants and a renovated on-site laundry facility. The location is just west of downtown Worcester, with access to Main Street and Park Avenue and connectivity via Interstate 290, Interstate 90 (Massachusetts Turnpike), and Route 9.
For prospective owners, this is a multifamily asset with a mix of extensively renovated units and units that may be upgraded to better align with the renovated standard. The combination of separately metered utilities, on-site laundry, and tenant parking supports day-to-day operational practicality across the full unit count.
All units are separately metered for heat, hot water, and electricity, with utilities paid directly by tenants. The property includes ample off-street parking for tenants and a renovated on-site laundry facility. The location is just west of downtown Worcester, with access to Main Street and Park Avenue and connectivity via Interstate 290, Interstate 90 (Massachusetts Turnpike), and Route 9.
For prospective owners, this is a multifamily asset with a mix of extensively renovated units and units that may be upgraded to better align with the renovated standard. The combination of separately metered utilities, on-site laundry, and tenant parking supports day-to-day operational practicality across the full unit count.
Key Highlights
- Two three‑story six‑unit multifamily buildings at 86–92 Hamilton St, totaling 12 units with 9,234 SF gross living area
- Unit mix: two 3BR/1BA units, seven 2BR/1BA units, and three 1BR/1BA units
- 90–92 Hamilton St was completely renovated after a fire, including new kitchens (quartz counters, stainless appliances), new baths, flooring, and new mechanicals
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
$168,978
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
7.35%
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%
$3,379,560
$3.4M
Cap Rate 7%
$2,413,971
$2.4M
Cap Rate 9%
$1,877,533
$1.9M
Market Conditions
NOI Build-Up for 12,535 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
$323.4K $25.80/SF
− Vacancy
−$16.2K −$1.29/SF
EGI
$307.2K $24.51/SF
− OpEx
−$138.3K −$11.03/SF
NOI
$169.0K $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%
$3,379,560
Cap Rate 7%
$2,413,971
Cap Rate 9%
$1,877,533
Alternative Uses
Best Use
Apartment 5plus
$2.41M
$2.11M – $2.82M
NOI $168,978 @ 7.0% cap · market cap 7.35%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.18M
$3.66M – $4.88M
NOI $292,874 @ 7.0% cap · market cap 12.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Yes
Sprinkler system
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
856
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?
Apartment building - Two three-story six-unit buildings offer renovated and non-renovated units with separate utilities and tenant parking.
Where is this apartment building located?
The property is located at 86 Hamilton Street Worcester, MA.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: Two three‑story six‑unit multifamily buildings at 86–92 Hamilton St, totaling 12 units with 9,234 SF gross living area; Unit mix: two 3BR/1BA units, seven 2BR/1BA units, and three 1BR/1BA units; 90–92 Hamilton St was completely renovated after a fire, including new kitchens (quartz counters, stainless appliances), new baths, flooring, and new mechanicals
