171 Old Cambridge Rd

A 2 to 2½ story wood frame, vinyl sided structure (former hospital), with a combination rubber membrane and asphalt shingle roof, elevator access, a full granite/brick foundation walled and concrete slab basement, built circa 1900, renovated over time. The property is state MASH certified as a 50-bed sober house under the 12-Step Education Program of New England.  This investment offers tremendous upside, when stabilized at an 85% occupancy (currently at 73% annualized).  Rents will be increased, as of October 2025, to $310 per week for singles, $235 per week for shared accommodations, $1,250 per month for singles and $1,000 for shared accommodations (includes food). To date, the mix has historically been 10% monthly fees and 90% weekly fees.  The property is in need of an upgrade.

Stabilized Proforma - The property has 50 beds and a gross building area of 9,131 sq ft. Gross scheduled income totals $639,010, including $6,250 from laundry ($125/bed/yr). After a generous 25% vacancy or collection loss ($159,753), the effective gross income is $479,258. Total expenses are estimated at $473,757, which includes real estate taxes and an acheivable pure triple net lease payment of $235,000. The expenses are based on FY 2024, with 3% increases to reflect a forward looking estimate.  Landscaping at $750 and snow plowing at $1,500 were added, as was a reserve replacement at $0.40 per square foot. Net operating income, based on the non-profit operation is $5,501. If a stabilized occupancy of 85% is used, the net operating income is estimated at $65,567.

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