Building Details

Building Size 7,800 SF

Year Built 1773

Listing Agency: c***@milestonerealtyinc.com Show Phone

Listed By: Alyson Roslonek Show Phone

Source: Milestonerealtyinc

Added: May 15 Changed: Aug 7 Last Checked: Aug 13 at 3:21AM

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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 Alyson Roslonek

Investment Insights

Based on property information with market context.

Located on Kearsarge Road in North Conway, the historic Isaac Merrill House, originally established in 1773, presents a blend of history and future opportunity in the Mount Washington Valley. The 7,800 square foot property operated for many years as a bed & breakfast. Currently, the building is configured for mid-term rentals, providing extended-stay housing. The location is minutes from Cranmore Mountain, Story Land, Schouler Park, and North Conway Village, placing residents and guests in the center of year-round recreation and activity. The property offers flexibility to continue the current extended-stay rental model, or explore the possibility of reestablishing the building as a bed & breakfast.

Key Highlights

• Historic Isaac Merrill House (est. 1773) offers unique character and appeal.
• Prime location minutes from Cranmore Mountain, Story Land, Schouler Park, and North Conway Village.
• Strong rental demand in the White Mountains.

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

$97,812

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

8.15%

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%

$1,956,240 $2.0M

Cap Rate 7%

$1,397,314 $1.4M

Cap Rate 9%

$1,086,800 $1.1M

Market Conditions

NOI Build-Up for 7,800 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

$234.0K $30.00/SF

− Vacancy

−$28.1K −$3.60/SF

EGI

$205.9K $26.40/SF

− OpEx

−$108.1K −$13.86/SF

NOI

$97.8K $12.54/SF

Area

Carroll County, NH

Vacancy

12.00%

Lease Rate

$30.00 /SF/Yr

Expense Ratio

52.50%

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%

$1,956,240

Cap Rate 7%

$1,397,314

Cap Rate 9%

$1,086,800

Alternative Uses

Best Use

Hotel Hospitality

$1.40M

$1.22M – $1.63M (±1% cap)

NOI $97,812 @ 7.0% cap · market cap 8.15%

Second Best

Apartment 5plus

$1.15M

$1.00M – $1.34M (±1% cap)

NOI $80,270 @ 7.0% cap · market cap 6.69%

Theoretical Best

Office A

$1.95M

$1.70M – $2.27M (±1% cap)

NOI $136,334 @ 7.0% cap · market cap 11.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Bed & breakfasts

Suggested Use

Top Pick Auto Repair Shop Bed & Breakfast Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

489

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 03860, NH

3,910

Population

3,169

Households

1.2

Avg Household Size

53

Median Age

40%

College-Educated

95%

High-School Grad

23.2 sq mi

ZIP Area

169

Density / Sq Mi

$81,771

Median Household Income

$45,915

Median Earnings

$1,094

Median Rent

$328,500

Median Home Value

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bed & breakfast - Historic property near North Conway Village with future opportunities.

Where is this bed & breakfast located?

The property is located at 720 Kearsarge Rd Conway North Conway, NH.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: Historic Isaac Merrill House (est. 1773) offers unique character and appeal.; Prime location minutes from Cranmore Mountain, Story Land, Schouler Park, and North Conway Village.; Strong rental demand in the White Mountains.