Mixed-Use Building with Development
For Sale
$995,000
Pending
1039 Douglas Avenue, Providence, RI 02904
Mixed-use property with income and development potential in Providence.
Property Size5,450 SF
Lot Size0.46 Acres
Days on Market216
Property Features for 1039 Douglas Avenue
General Information
Standard status
Pending
Size
5,450 SF
Lot size
0.46 Acres
Property subtype
Residential Income / Multi Family
Taxes and HOA fees
Annual Taxes
$23,239
Amenities
Central Air
Central, Gas
Interior Entry, Partial, Unfinished
Laminate
Gas Water Heater
Yes
18
No
3
1
5
Stall Shower
4
See Remarks
Building Details
Year Built
1900
Buildings
1
Listing Agency:
Compass
(401) 612-4242
Listed By:
Jonathan Kaufman · License #RES.0044773
(401) 612-4242
Source:
Compass
Added: Jan 20
Changed: Aug 23
Last Checked: Aug 24 at 12:19PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Compass
Investment Insights
Based on property information with market context.
This offering includes nearly 20,000 square feet of buildable land comprised of two parcels, situated at a highly visible and busy intersection in Providence. The property features a five-unit mixed-use building with three residential units and two restaurant spaces. Newer updates include the roof and mechanical systems. Both parcels are zoned C-2, which allows for a wide range of permitted commercial and mixed-use applications with flexible development standards, including potential drive-through capacity, subject to approvals. The site benefits from four curb cuts, providing excellent access, circulation, and exceptional visibility from all sides. The parcels convey together, offering additional development potential and subdivision, subject to approvals.
Key Highlights
- High‑visibility location at a busy intersection in Providence.
- Existing income from a five‑unit mixed‑use building (3 residential, 2 restaurant).
- Development potential and subdivision possibilities (subject to approvals).
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
$77,090
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
7.75%
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%
$1,541,800
$1.5M
Cap Rate 7%
$1,101,286
$1.1M
Cap Rate 9%
$856,556
$856.6K
Market Conditions
NOI Build-Up for 5,450 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
$134.1K $24.60/SF
− Vacancy
−$10.7K −$1.97/SF
EGI
$123.3K $22.63/SF
− OpEx
−$46.3K −$8.49/SF
NOI
$77.1K $14.15/SF
Area
Providence, RI
Vacancy
8.00%
Lease Rate
$24.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,541,800
Cap Rate 7%
$1,101,286
Cap Rate 9%
$856,556
Alternative Uses
Best Use
Mixed Use
$1.10M
$963.6K – $1.28M
NOI $77,090 @ 7.0% cap · market cap 7.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.82M
$1.60M – $2.13M
NOI $127,633 @ 7.0% cap · market cap 12.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
442
Businesses Nearby
Explore this area
Business Placement
Demographics for 02904, RI
31,542
Population
14,483
Households
2.2
Avg Household Size
41
Median Age
32%
College-Educated
88%
High-School Grad
5.2 sq mi
ZIP Area
6,066
Density / Sq Mi
$64,637
Median Household Income
$47,040
Median Earnings
$1,217
Median Rent
$302,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with income and development potential in Providence.
Where is this mixed-use property located?
The property is located at 1039 Douglas Avenue Providence, RI.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: High‑visibility location at a busy intersection in Providence.; Existing income from a five‑unit mixed‑use building (3 residential, 2 restaurant).; Development potential and subdivision possibilities (subject to approvals).
