Pond-Front Restaurant and
For Sale
$3,999,000
Pending
116 Aquidneck Avenue Middletown, Middletown, RI 02842
The package includes an operating restaurant and brewery with private-event space and LBA-zoned commercial space.
Property Size9,149 SF
Lot Size0.57 Acres
Days on Market117
Property Features for 116 Aquidneck Avenue Middletown
General Information
Standard status
Pending
Size
9,149 SF
Total Parking Spaces
44
Lot size
0.57 Acres
Zoning
LBA
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$30,521
Building Details
Building Size
9,149 SF
Year Built
1960
Buildings
2
Stories
2
Listing Agency:
(508) 501-1443
Listed By:
Ashley Paiva
(508) 501-1443
Source:
Milestonerealtyinc
Added: May 7
Changed: Aug 30
Last Checked: Aug 30 at 5:07PM
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 Ashley Paiva
Investment Insights
Based on property information with market context.
This offering brings together two operating businesses at 116 Aquidneck Avenue. Diego's Cantina is a 5,500-square-foot Mexican restaurant and function venue with seating for 166 guests, dining space, private-event capability, and views across Easton Pond. Its west-facing setting supports year-round operations.
Rejects Brewery adds 3,600 square feet of LBA-zoned space next door. The property information identifies food service, manufacturing, and distribution among the applicable use possibilities for this component. Together, the businesses occupy a 0.57-acre parcel in Middletown. The property was built in 1960 and is offered as a combined operating package.
Rejects Brewery adds 3,600 square feet of LBA-zoned space next door. The property information identifies food service, manufacturing, and distribution among the applicable use possibilities for this component. Together, the businesses occupy a 0.57-acre parcel in Middletown. The property was built in 1960 and is offered as a combined operating package.
Key Highlights
- 5,500‑square‑foot restaurant and function venue with seating for 166
- Diego's Cantina includes west‑facing views of Easton Pond
- Rejects Brewery provides 3,600 square feet of LBA‑zoned space
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
$132,800
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
3.32%
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%
$2,656,000
$2.7M
Cap Rate 7%
$1,897,143
$1.9M
Cap Rate 9%
$1,475,556
$1.5M
Market Conditions
NOI Build-Up for 9,149 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
$197.6K $21.60/SF
− Vacancy
−$20.6K −$2.25/SF
EGI
$177.1K $19.35/SF
− OpEx
−$44.3K −$4.84/SF
NOI
$132.8K $14.52/SF
Area
Newport County, RI
Vacancy
10.40%
Lease Rate
$21.60 /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%
$2,656,000
Cap Rate 7%
$1,897,143
Cap Rate 9%
$1,475,556
Alternative Uses
Best Use
Specialty Retail
$1.90M
$1.66M – $2.21M
NOI $132,800 @ 7.0% cap · market cap 3.32%
Second Best
Industrial
$608.1K
$532.1K – $709.5K
NOI $42,568 @ 7.0% cap · market cap 1.06%
Theoretical Best
Multifamily LT 5
$2.18M
$1.91M – $2.55M
NOI $152,808 @ 7.0% cap · market cap 3.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
210
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 02842, RI
17,115
Population
8,255
Households
2.1
Avg Household Size
43
Median Age
49%
College-Educated
96%
High-School Grad
12.5 sq mi
ZIP Area
1,369
Density / Sq Mi
$97,650
Median Household Income
$47,307
Median Earnings
$1,906
Median Rent
$536,600
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - The package includes an operating restaurant and brewery with private-event space and LBA-zoned commercial space.
Where is this conventional restaurant located?
The property is located at 116 Aquidneck Avenue Middletown Middletown, RI.
What is the asking price?
The asking price for this property is $3,999,000.
What are key features of this property?
This property features: 5,500‑square‑foot restaurant and function venue with seating for 166; Diego's Cantina includes west‑facing views of Easton Pond; Rejects Brewery provides 3,600 square feet of LBA‑zoned space
