In 2002, the property at 109 Smith Place in Cambridge, MA was purchased for $1,950,000 with a going-in cap rate of 4.09%, meaning it generated an estimated annual net operating income of $79,755 at the time. After holding the property for four years, it was sold in 2006 for $3,000,000.
This sale represented a 147% return on the original investment, suggesting significant capital appreciation and possibly rental income gains during ownership.
The annualized return on the investment over the four-year period was approximately 11.3% per year, reflecting the strong performance of the property in a relatively short timeframe. The overall strategy resulted in substantial financial growth from the initial purchase to the final disposition.
- Purchase Details: Acquired in 2002 for $1,950,000 with a 4.09% going-in cap rate.
- Disposition: Sold in 2006 for $3,000,000, realizing a 147% return.
