264 Grafton St

Executive summary

This is a mixed-use investment for sale at 264 Grafton Street in Worcester, and it pays from three directions: commercial rent, apartment rent and billboard income.

The building holds three commercial units, with a restaurant in two of them and an auto shop in the third, plus three apartments, and two billboards stand on the roof. Every commercial lease is NNN and the residential tenants pay their own utilities, so the owner carries very little of the operating cost. The tenants are long-standing, and four new mini-split systems with AC condensers keep near-term capital needs low. The building is estimated at 8,000 SF. Grafton Street carries about 10,000 cars a day past the front door, the I-290 ramp at Grafton Street is a few hundred yards north, and downtown Worcester is less than a mile away, so the restaurant, the shop and the billboards all face real traffic. The parcel is 0.32 acres, zoned BL-1.0, and takes in 2 Mendon Street behind the building. There is vacant land on it, and the owner is pursuing permits, ANR approval and architectural drawings for a four-unit townhouse there, which the city planning department has approved verbally. That gives a buyer two ways in: hold it for passive income, or add new homes on land already owned. The asking price is $1,995,000, a 6.53% cap rate on the net operating income the seller reports. Call Collin for the financials and a tour.