Established Restaurant Near Baltimore
For Sale
Contact for pricing
111 Mercer St, Baltimore, MD
Well-maintained building with successful pub-style restaurant business for sale.
Property Size3,345 SF
Lot Size0.03 Acres
Price / SF$403.59
Days on Market868
Property Features for 111 Mercer St
General Information
Standard status
Active
Size
3,345 SF
Lot size
0.03 Acres
Property subtype
RETAIL
Listing Agency:
Greysteel | Dallas
(469) 518-5040
Listed By:
Benjamin Wilson · License #DC#SP98372489
(410) 227-7342
Source:
Moodyscre
Added: Apr 30, 2024
Changed: Sep 2
Last Checked: Sep 13 at 6:06AM
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 Greysteel | Dallas
Investment Insights
Based on property information with market context.
This is an opportunity to acquire an exceptionally well-maintained building and established business, a successful pub-style restaurant with an established reputation and track record of profitability since 1974. The property is located a short walk from the Baltimore Inner Harbor. The building has been meticulously maintained by the owner/operator. The property size is 3,345 square feet, presenting an excellent investment opportunity for an operator looking for a strong existing business paired with high-quality real estate.
Key Highlights
- Established and Profitable Business: Peter's Pour House, a successful pub‑style restaurant since 1974, offers a proven track record of profitability.
- Prime Location: Situated a short walk from the Baltimore Inner Harbor, offering high visibility and accessibility.
- Well‑Maintained Building: The property has been meticulously maintained by the owner/operator, ensuring its excellent condition.
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
$54,054
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
4.00%
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%
$1,081,080
$1.1M
Cap Rate 7%
$772,200
$772.2K
Cap Rate 9%
$600,600
$600.6K
Market Conditions
NOI Build-Up for 3,345 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
$76.3K $22.80/SF
− Vacancy
−$4.2K −$1.25/SF
EGI
$72.1K $21.55/SF
− OpEx
−$18.0K −$5.39/SF
NOI
$54.1K $16.16/SF
Area
Baltimore, MD
Vacancy
5.50%
Lease Rate
$22.80 /SF/Yr
Expense Ratio
25.00%
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%
$1,081,080
Cap Rate 7%
$772,200
Cap Rate 9%
$600,600
Alternative Uses
Best Use
Specialty Retail
$772.2K
$675.7K – $900.9K
NOI $54,054 @ 7.0% cap · market cap 4.00%
Second Best
Retail
$676.4K
$591.8K – $789.1K
NOI $47,345 @ 7.0% cap · market cap 3.51%
Theoretical Best
Office A
$801.4K
$701.2K – $934.9K
NOI $56,096 @ 7.0% cap · market cap 4.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
9,657
Businesses Nearby
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Business Placement
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in Baltimore, MD
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Pub - Well-maintained building with successful pub-style restaurant business for sale.
Where is this pub located?
The property is located at 111 Mercer St Baltimore, MD.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Established and Profitable Business: Peter's Pour House, a successful pub‑style restaurant since 1974, offers a proven track record of profitability.; Prime Location: Situated a short walk from the Baltimore Inner Harbor, offering high visibility and accessibility.; Well‑Maintained Building: The property has been meticulously maintained by the owner/operator, ensuring its excellent condition.
