Conventional Restaurant with Outdoor
For Sale
$199,000
125 Main Street, Westerly, RI 02891
Commercial/Business, Westerly, RI
Property Size1,500 SF
Lot Size2.26 Acres
Price / SF$132.67
Days on Market82
Property Features for 125 Main Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
DC2
Parking
40
Security features
Security
Interior features
Ceiling Height (9 to 12 Ft)
Lot features
Paved, Sidewalks, Downtown
Standard status
Active
Size
1,500 SF
Lot size
2.26 Acres
Taxes and HOA fees
Tax Year
2023
Utilities
Heating system
Zoned, Natural Gas
Cooling system
Ductless
Building Details
Year built
1975
Number of units
1
Building materials
Brick, Masonry
Listing Agency:
Coldwell Banker Coastal Homes · Coldwell Banker Real Estate
(401) 596-6333
Listed By:
Mark Wright
(401) 787-5203
Added: Jun 25
Changed: Sep 12
Last Checked: Sep 14 at 3:06PM
MLS# 1416336
Copyright © 2026 State Wide MLS of Rhode Island, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This conventional restaurant property includes a 1,500-square-foot building with brick and masonry construction, a seasonal outdoor patio, and all inventory and equipment located on the premises. The operation has been in business for 60 years and is situated on a 2.26-acre parcel. Interior features include 9- to 12-foot ceiling heights. The property was built in 1975 and has natural gas, zoned heating with ductless cooling, and DC2 zoning.
Key Highlights
- 1,500 SF restaurant building on 2.26 acres
- 60‑year operating history
- Outdoor patio supports seasonal dining
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$15,209
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.64%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$304,180
$304.2K
Cap Rate 7%
$217,271
$217.3K
Cap Rate 9%
$168,989
$169.0K
Market Conditions
NOI Build-Up for 1,500 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$22.7K $15.12/SF
− Vacancy
−$953 −$0.64/SF
EGI
$21.7K $14.48/SF
− OpEx
−$6.5K −$4.35/SF
NOI
$15.2K $10.14/SF
Area
Washington County, RI
Vacancy
4.20%
Lease Rate
$15.12 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$304,180
Cap Rate 7%
$217,271
Cap Rate 9%
$168,989
Alternative Uses
Best Use
Specialty Retail
$277.1K
$242.5K – $323.3K
NOI $19,400 @ 7.0% cap · market cap 9.75%
Second Best
Retail
$217.3K
$190.1K – $253.5K
NOI $15,209 @ 7.0% cap · market cap 7.64%
Theoretical Best
Healthcare Medical
$299.7K
$262.2K – $349.7K
NOI $20,979 @ 7.0% cap · market cap 10.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
832
Businesses Nearby
12k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 87%
Dining 13%
Mobil
Shops & Services
6,362 visits/mo
0.2 miles
Shell
Shops & Services
4,487 visits/mo
0.2 miles
The Cafe
Dining
1,584 visits/mo
0.4 miles
Demographics for 02891, RI
21,803
Population
12,660
Households
1.7
Avg Household Size
50
Median Age
41%
College-Educated
94%
High-School Grad
26.3 sq mi
ZIP Area
829
Density / Sq Mi
$90,435
Median Household Income
$49,448
Median Earnings
$1,249
Median Rent
$422,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established pizza restaurant with on-site equipment, inventory, and seasonal outdoor dining area.
Where is this conventional restaurant located?
The property is located at 125 Main Street Westerly, RI.
What is the asking price?
The asking price for this property is $199,000.
What are key features of this property?
This property features: 1,500 SF restaurant building on 2.26 acres; 60‑year operating history; Outdoor patio supports seasonal dining
