Auto Dealership with Expansion
For Sale
$1,300,000
1220 Broad Street, Central Falls, RI 02863
Established auto business and real estate in revitalizing neighborhood.
Property Size12,000 SF
Price / SF$108.33
Days on Market213
Property Features for 1220 Broad Street
General Information
Standard status
Active
Size
12,000 SF
Property subtype
Commercial
Building Details
Year Built
1960
Listing Agency:
BHHS Commonwealth Real Estate
(401) 345-3100
Listed By:
Barry Alofsin · License #0041106
(401) 345-3100
Source:
Liongatere
Added: Jan 6
Changed: Jul 10
Last Checked: Aug 7 at 10:18AM
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 approximately 12,000 SF property features an established auto dealership, auto body shop, auto repair facility, and office space. The sales lot accommodates up to 25 vehicles and provides visibility along Broad Street. 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. Located in a revitalizing neighborhood with newly improved roads, sidewalks, and municipal lighting, the property 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.
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 for up to 25 vehicles.
- Second level offers unfinished storage or potential residential space with separate entrance and dedicated parking.
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
$62,622
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
4.82%
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%
$1,252,440
$1.3M
Cap Rate 7%
$894,600
$894.6K
Cap Rate 9%
$695,800
$695.8K
Market Conditions
NOI Build-Up for 12,000 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
$90.0K $7.50/SF
− Vacancy
−$540 −$0.05/SF
EGI
$89.5K $7.46/SF
− OpEx
−$26.8K −$2.24/SF
NOI
$62.6K $5.22/SF
Area
Providence County, RI
Vacancy
0.60%
Lease Rate
$7.50 /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%
$1,252,440
Cap Rate 7%
$894,600
Cap Rate 9%
$695,800
Alternative Uses
Best Use
Office B
$2.22M
$1.94M – $2.59M
NOI $155,110 @ 7.0% cap · market cap 11.93%
Second Best
Retail
$1.94M
$1.69M – $2.26M
NOI $135,475 @ 7.0% cap · market cap 10.42%
Theoretical Best
Multifamily LT 5
$2.85M
$2.50M – $3.33M
NOI $199,806 @ 7.0% cap · market cap 15.37%
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
Under-served
Demand for This Use
Explore this area
Business Placement
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 Office in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- U-Haul Neighborhood Dealer — 854 Dexter St, Central Falls, RI 02863
- Enterprise Rent-A-Car — 458 Broadway, Pawtucket, RI 02860
Frequently Asked Questions
What type of property is this?
Automotive property - Established auto business and real estate in revitalizing neighborhood.
Where is this automotive property located?
The property is located at 1220 Broad Street 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 for up to 25 vehicles.; Second level offers unfinished storage or potential residential space with separate entrance and dedicated parking.
