Eight-Unit Apartment
For Sale
$1,275,000
88 Cross Street, Southbridge, MA 01550
Well-maintained multifamily with a mix of 1-, 2-, and 3-bedroom units and current gross monthly rent of $9,242.
Property Size5,224 SF
Price / SF$244.07
Days on Market126
Property Features for 88 Cross Street
General Information
Standard status
Active
Size
5,224 SF
Property subtype
Multi-family
Additional Details
Highway Access
Yes
Multifamily Units
8
Building Details
Year Built
1900
Listing Agency:
www.HomeZu.com
Listed By:
Jason Saphire
(774) 280-2745
Source:
Broadboutique
Added: Apr 10
Changed: Aug 12
Last Checked: Aug 12 at 3:58AM
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 www.HomeZu.com
Investment Insights
Based on property information with market context.
This well-maintained eight-unit multifamily property offers a mix of 1-, 2-, and 3-bedroom apartments. Unit types include two-bedroom basement, two-bedroom units at the 1L and 1Rear designations, three-bedroom units at 1R, and multiple two-bedroom apartments at 2L and 2R. There are also one-bedroom units at 3R and one-bedroom units referenced alongside the three-bedroom units at 3L. The building’s current gross monthly rent totals $9,242, with an average of $1,540 per unit. Documented annual expenses include property taxes, disposal and waste fees, electricity, and water and sewer.
Located in Southbridge, Massachusetts, the property provides easy highway access and is close to local amenities, supporting tenant convenience and day-to-day living.
The tenant mix is suited to residents seeking different bedroom options within the same building, and several units are noted as currently showing below-market rents. For buyers evaluating an owner-occupant or investment strategy, the setup offers a straightforward portfolio addition profile, including consideration for a 1031 exchange.
Located in Southbridge, Massachusetts, the property provides easy highway access and is close to local amenities, supporting tenant convenience and day-to-day living.
The tenant mix is suited to residents seeking different bedroom options within the same building, and several units are noted as currently showing below-market rents. For buyers evaluating an owner-occupant or investment strategy, the setup offers a straightforward portfolio addition profile, including consideration for a 1031 exchange.
Key Highlights
- 8‑unit multifamily building with a mix of 1-, 2-, and 3‑bedroom units
- Current gross monthly rent of $9,242 with an average of $1,540 per unit
- Unit mix includes 2BR, 3BR, and 1BR configurations (e.g., Basement 2BR and 1R 3BR)
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
$61,455
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
4.82%
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%
$1,229,100
$1.2M
Cap Rate 7%
$877,929
$877.9K
Cap Rate 9%
$682,833
$682.8K
Market Conditions
NOI Build-Up for 5,224 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
$114.7K $21.96/SF
− Vacancy
−$3.0K −$0.57/SF
EGI
$111.7K $21.39/SF
− OpEx
−$50.3K −$9.63/SF
NOI
$61.5K $11.76/SF
Area
Worcester County, MA
Vacancy
2.60%
Lease Rate
$21.96 /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%
$1,229,100
Cap Rate 7%
$877,929
Cap Rate 9%
$682,833
Alternative Uses
Best Use
Apartment 5plus
$877.9K
$768.2K – $1.02M
NOI $61,455 @ 7.0% cap · market cap 4.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.78M
$1.56M – $2.08M
NOI $124,874 @ 7.0% cap · market cap 9.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
894
Businesses Nearby
Explore this area
Business Placement
Demographics for 01550, MA
17,740
Population
7,644
Households
2.3
Avg Household Size
39
Median Age
18%
College-Educated
82%
High-School Grad
20.2 sq mi
ZIP Area
878
Density / Sq Mi
$59,397
Median Household Income
$41,365
Median Earnings
$1,157
Median Rent
$267,000
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 - Well-maintained multifamily with a mix of 1-, 2-, and 3-bedroom units and current gross monthly rent of $9,242.
Where is this apartment building located?
The property is located at 88 Cross Street Southbridge, MA.
What is the asking price?
The asking price for this property is $1,275,000.
What are key features of this property?
This property features: 8‑unit multifamily building with a mix of 1-, 2-, and 3‑bedroom units; Current gross monthly rent of $9,242 with an average of $1,540 per unit; Unit mix includes 2BR, 3BR, and 1BR configurations (e.g., Basement 2BR and 1R 3BR)
