752 Sumner Ave
Retail
Marketing description
752 Sumner Avenue is a 9,268 SF mixed-use building located on a 27,584 SF parcel in the Forest Park neighborhood of Springfield, Massachusetts. The property consists of a fully leased ground-floor commercial component generating $9,200/month ($110,400/year) in verified rental income from five tenants (Clothing Boutique, Transportation, Rose Nails, Ysabel Hair Salon, and Cricket Wireless) and a vacant second floor that has received City Conditional Approval for conversion into seven (7) one-bedroom residential units.
The property is offered at $999,000 — priced as an approved, entitled, income-producing asset. The seller has completed the entitlement work, secured executed parking agreements, and commissioned architectural drawings. The next buyer steps into a clear execution path: pull building permits, execute construction ($700K–$800K estimated), and stabilize to a projected as-complete value of $2.0M–$2.8M depending on achieved rents and exit cap rate.
Investment highlights
- Entitlement risk eliminated. City Conditional Approval (Tier 1) is in hand, signed by Deputy Director Philip Dromey on April 13, 2026. The 2-year window to file a building permit is open. Most comparable value-add deals in this market require the buyer to navigate zoning and approval hurdles — this one does not.
- Income from day one. Verified retail income of $9,200/month from 5 tenants covers carrying costs throughout construction. At an acquisition bridge loan of 10% on $999K, monthly interest is ~$8,325 — retail income provides 1.11x coverage with no cash-flow gap.
- Parking fully solved. Parking is typically the single largest obstacle to residential conversion in Springfield's Business A zone. This has been resolved via a dual executed agreement: 4 spaces on-site (site plan S-1, Hervieux Design, 3/18/26) and 6 designated off-site spaces conveyed from ATAB LLC/Lot 3 (DocuSigned 4/30/2026). The City approval letter specifically references parking as a condition — and it is met.
- Significant value creation potential. Base-case pro forma projects NOI of $154,534 at stabilization. Capitalized at 6.5%, this yields an as-complete value of $2,377,000 — against a total project cost of approximately $1.70M–$1.80M. Base-case equity creation: $578K–$678K.
- 1031 exchange eligible. The presence of verified commercial tenants and in-place rental income makes this a genuine operating property acquisition, satisfying IRS like-kind exchange requirements. A buyer can defer capital gains while acquiring an entitled build-ready asset.
- Land Area 27,584 SF (0.63 acres)
- Building Size 9,268–9,480 SF (2 stories)
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