A fully renovated 48-unit residential building in downtown Lynn, Massachusetts, has been listed for sale at $5.45 million. The property, known as The North Shore Commons, operates under a single-room occupancy (SRO) model, a housing format gaining attention in high-cost urban areas.
The sale, managed by Northeast Private Client Group, also includes an adjacent vacant lot, presenting a unique investment opportunity that combines a turnkey rental property with future development potential in a designated Qualified Opportunity Zone.
Key Takeaways
- A 48-unit SRO property in Lynn, MA, is listed for $5.45 million.
- The offering includes an adjacent 6,202-square-foot lot zoned for residential development.
- The property has undergone significant renovations, including new kitchens, bathrooms, and in-room amenities.
- The investment shows a current capitalization rate of 7.2%, with a projected rate of 8.74%.
Investment Details and Property Overview
The North Shore Commons, located at 69 North Common Street, is a three-story brick building constructed in 1905. Spanning 14,680 square feet, the property has been completely modernized to meet the demands of today's rental market. The list price breaks down to approximately $113,541 per unit.
The building contains 48 private, fully furnished rooms. Recent capital improvements have introduced modern shared facilities, including 12 new bathrooms—four on each floor—and newly designed communal kitchens. These kitchens feature granite countertops, custom cabinetry, and modern appliances.
A new on-site laundry facility with folding stations has also been added to enhance resident convenience. Each private room is equipped with a new refrigerator, a plasma TV, and a virtual touch security system, offering a blend of comfort and security.
Financial Snapshot
- Sale Price: $5,450,000
- Price per Unit: $113,541
- Current Cap Rate: 7.2%
- Pro Forma Cap Rate: 8.74%
- Average In-Place Rent: $1,040
The Rise of SRO Housing
The property's single-room occupancy format is a key aspect of its investment appeal. SROs provide individual, furnished rooms with shared common areas like kitchens and bathrooms. This model offers a more affordable housing solution for single individuals, students, and essential workers in metropolitan areas where traditional apartment costs are prohibitive.
In the Greater Boston area, where housing affordability remains a persistent challenge, the SRO model serves a critical niche. It provides workforce housing for those who need convenient access to the city without the high price tag of a full-sized apartment. The average in-place rent at North Shore Commons is reported at $1,040, a figure that is competitive within the regional market.
What is a Qualified Opportunity Zone?
A Qualified Opportunity Zone is an economically distressed community where new investments, under certain conditions, are eligible for preferential tax treatment. The inclusion of the adjacent vacant lot at 10 Hanover Street within such a zone offers potential tax benefits for future development, making the overall investment package more attractive.
Strategic Location and Development Potential
The property's location is a significant asset. Situated directly across from Lynn Commons, a large public park, it offers residents green space and a walkable neighborhood. Its proximity to Lynn Station on the MBTA Commuter Rail provides direct transit to Boston’s North Station and Logan International Airport, a crucial feature for commuters.
The sale includes a 6,202-square-foot vacant lot at 10 Hanover Street, which is adjacent to the main building. This lot is zoned R-5, permitting residential development. This presents a rare opportunity for a new owner to either expand the existing housing complex, build a new residential structure, or develop complementary amenities.
Future Prospects in a Gateway City
Lynn is considered one of Greater Boston's key gateway cities, experiencing a period of revitalization and growth. Its strategic location, transportation infrastructure, and relative affordability have made it an increasingly popular destination for residents and investors.
The combination of a stabilized, income-generating asset with the potential for new construction makes The North Shore Commons a notable listing. The property's modern renovations and strong current financial performance suggest a turnkey operation, while the adjacent lot provides a clear path for future value creation. Northeast Private Client Group is currently arranging private tours for qualified buyers.
