Four-Unit Multifamily Investment
For Sale
$1,499,000
Pending
87-89 Spring St, Medford, MA 02155
Four units on one lot, convenient location, good cash flow.
Property Size3,388 SF
Days on Market107
Property Features for 87-89 Spring St
General Information
Standard status
Pending
Size
3,388 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$7,630
Building Details
Building Size
3,388 SF
Year Built
1900
Stories
5
Units
4
Listing Agency:
Compass Florida, LLC
(617) 216-1493
Listed By:
The Shahani Group
(617) 216-1493
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Aug 7 at 5:56AM
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 Compass Florida, LLC
Investment Insights
Based on property information with market context.
This property presents a rare opportunity for investors and those seeking a 1031 exchange. It features two separate structures situated on a single lot, comprising a total of four units. The unit mix includes a large 5-bedroom apartment, two 2-bedroom apartments, and a 1-bedroom apartment. Located conveniently near transportation and shopping, the property offers ease of access to local amenities. Tenants are responsible for covering their own utility expenses. Several updates have been made to the property over the years, including replaced water heaters and newer heater systems. There is parking space for 3 cars in the driveway. The property has great potential to increase future value considerably. The bike score is 63, indicating it is bikeable. The walk score is 70, meaning it is somewhat walkable. The transit score is 45, indicating some transit options are available.
Key Highlights
- Four Units on One Lot: Two separate structures provide a diverse rental portfolio.
- Good Cash Flow: Presents an immediate income opportunity for investors.
- Tenants Pay Utilities: Reduces landlord expenses and increases net operating income.
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
$71,691
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
4.78%
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%
$1,433,820
$1.4M
Cap Rate 7%
$1,024,157
$1.0M
Cap Rate 9%
$796,567
$796.6K
Market Conditions
NOI Build-Up for 3,388 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
$107.7K $31.80/SF
− Vacancy
−$5.3K −$1.57/SF
EGI
$102.4K $30.23/SF
− OpEx
−$30.7K −$9.07/SF
NOI
$71.7K $21.16/SF
Area
Middlesex County, MA
Vacancy
4.94%
Lease Rate
$31.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,433,820
Cap Rate 7%
$1,024,157
Cap Rate 9%
$796,567
Alternative Uses
Best Use
Multifamily LT 5
$1.02M
$896.1K – $1.19M
NOI $71,691 @ 7.0% cap · market cap 4.78%
Second Best
Apartment 5plus
$963.0K
$842.6K – $1.12M
NOI $67,410 @ 7.0% cap · market cap 4.50%
Theoretical Best
Office A
$2.01M
$1.75M – $2.34M
NOI $140,398 @ 7.0% cap · market cap 9.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
903
Businesses Nearby
Explore this area
Business Placement
Demographics for 02155, MA
61,483
Population
25,893
Households
2.4
Avg Household Size
36
Median Age
58%
College-Educated
93%
High-School Grad
8.2 sq mi
ZIP Area
7,498
Density / Sq Mi
$118,403
Median Household Income
$60,825
Median Earnings
$2,483
Median Rent
$715,500
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?
Quadplex - Four units on one lot, convenient location, good cash flow.
Where is this quadplex located?
The property is located at 87-89 Spring St Medford, MA.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: Four Units on One Lot: Two separate structures provide a diverse rental portfolio.; Good Cash Flow: Presents an immediate income opportunity for investors.; Tenants Pay Utilities: Reduces landlord expenses and increases net operating income.
