The Mega Group achieves 2.39% CAP 12-unit apartment building in Salem

Salem, MA The Mega Group negotiated the sale of 10-14 Lynch St., representing the seller, 10-14 Lynch Street Salem Realty Trust and its trustee, Anthony Paone Jr. of FL. The subject property is a 11,519 s/f 12-unit brick apartment building with nine off-street parking spaces situated on a 6,460 s/f corner lot.

The asset, which sold for $3.26 million, was marketed for sale on the public market, generating 33 property tours and received 19 offers, all but one exceeding $3 million.

Prior to listing, Francesca Little of Little & Co. reached out and was prepared to offer on day one and represented Spire Investments, who was the successful bidder executing a no-finance contingency contract. Institute for Savings provided financing with a two-year interest-only package that allows the buyer to renovate and stabilize the asset. At the time of the sale the net income was $78,212, or a 2.39% CAP rate with the full expectation to be at an 8.46% CAP rate in 18-months.

10-14 Lynch St. is near both Salem State University and the historic downtown tourist attractions, restaurants, breweries and the waterfront activities.

Prior to closing, the seller remodeled all the exterior fire escapes, upgraded the fire alarm and sprinkler systems, and provided a credit to the buyer to install a new roof post-closing.

The sale was recorded on May 12, 2026 but subject to an eviction of one tenant that was finally executed on July 31, 2026.

Brian DApice of The Mega Group had sold 10-14 Lynch St. to Paone Jr. in 2009. DApice had also represented Paone Jr. in two other real estate transactions totaling $24 million.

The Mega Group has been providing commercial real estate brokerage services since 1997. Their areas of discipline include investment & commercial sales, hotels & other hospitality investments, retail & industrial real estate, land development, and IRS 1031 Tax Deferred Exchanges. Our services expand through greater metropolitan Boston, Rhode Island, seacoast of New Hampshire and southern Maine.