Auto Dealership with Expansion
For Sale
$1,300,000
1220 Broad, Central Falls, RI 02863
Established auto business with real estate in revitalizing neighborhood.
Property Size5,740 SF
Lot Size0.13 Acres
Price / SF$226.48
Days on Market215
Property Features for 1220 Broad
General Information
Standard status
Active
Size
5,740 SF
Lot size
0.13 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$10,368
Amenities
Central air
Central Air Cooling
Central Heating
Ductless Cooling
Forced Air Heating
Building Details
Year Built
1960
Listing Agency:
BHHS COMMONWEALTH REAL ESTATE
(401) 886-6100
Listed By:
BARRY ALOFSIN · License #0041106
Source:
Corcoran
Added: Jan 6
Changed: Aug 8
Last Checked: Aug 8 at 6:27AM
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 BHHS COMMONWEALTH REAL ESTATE
Investment Insights
Based on property information with market context.
This is a rare opportunity to acquire an auto dealership with real estate, located at 1220 Broad Street, Central Falls, RI. The property is approximately 12,000 SF and features an established auto dealership, auto body shop, auto repair facility, and office space. The second level includes unfinished storage or potential residential space with a separate entrance and dedicated parking, offering future expansion or income potential, subject to approvals. The sales lot accommodates up to 25 vehicles and provides visibility along Broad Street. The property is located in a revitalizing neighborhood with improved roads, sidewalks, and municipal lighting, and is directly across from a major residential development project. The auto dealership business and real estate are being sold together. The owner is willing to remain during transition and license transfer. The property size is 5740 SF.
Key Highlights
- Established auto dealership with real estate including auto body shop, auto repair facility, and office space.
- High‑visibility location on heavily traveled Broad Street with sales lot accommodating up to 25 vehicles.
- Opportunity to acquire a generational business and real estate together.
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
$64,802
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
4.98%
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%
$1,296,040
$1.3M
Cap Rate 7%
$925,743
$925.7K
Cap Rate 9%
$720,022
$720.0K
Market Conditions
NOI Build-Up for 5,740 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
$103.3K $18.00/SF
− Vacancy
−$10.7K −$1.87/SF
EGI
$92.6K $16.13/SF
− OpEx
−$27.8K −$4.84/SF
NOI
$64.8K $11.29/SF
Area
Providence County, RI
Vacancy
10.40%
Lease Rate
$18.00 /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%
$1,296,040
Cap Rate 7%
$925,743
Cap Rate 9%
$720,022
Alternative Uses
Best Use
Retail
$925.7K
$810.0K – $1.08M
NOI $64,802 @ 7.0% cap · market cap 4.98%
Second Best
Industrial
$427.9K
$374.4K – $499.2K
NOI $29,954 @ 7.0% cap · market cap 2.30%
Theoretical Best
Multifamily LT 5
$1.37M
$1.19M – $1.59M
NOI $95,574 @ 7.0% cap · market cap 7.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
617
Businesses Nearby
11k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 74%
Home Improvements & Furnishings 26%
Family Dollar
Shops & Services
6,135 visits/mo
0.5 miles
Roger's Hardware Inc
Home Improvements & Furnishings
2,936 visits/mo
0.4 miles
Advance Auto Parts
Shops & Services
2,177 visits/mo
0.5 miles
Demographics for 02863, RI
22,596
Population
8,341
Households
2.7
Avg Household Size
32
Median Age
12%
College-Educated
60%
High-School Grad
1.2 sq mi
ZIP Area
18,830
Density / Sq Mi
$45,921
Median Household Income
$30,050
Median Earnings
$1,118
Median Rent
$300,500
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Alaska Auto — 504 Roosevelt Ave, Central Falls, RI 02863
- B & L Auto Sales — 824 Lonsdale Ave, Central Falls, RI 02863
- ACS Auto — 679 Lonsdale Ave, Central Falls, RI 02863
- G&H Vehicle Repair Inc. — Pawtucket, RI 02860
- Warren Tire Inc — 420 Broadway, Pawtucket, RI 02860
Frequently Asked Questions
What type of property is this?
Auto shop - Established auto business with real estate in revitalizing neighborhood.
Where is this auto shop located?
The property is located at 1220 Broad Central Falls, RI.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Established auto dealership with real estate including auto body shop, auto repair facility, and office space.; High‑visibility location on heavily traveled Broad Street with sales lot accommodating up to 25 vehicles.; Opportunity to acquire a generational business and real estate together.
