Freestanding Restaurant
For Sale
$695,000
1 Railroad Avenue, York, ME 03909
Established commercial district setting near Short Sands Beach with neighboring shops, restaurants, and hotels.
Property Size1,618 SF
Price / SF$429.54
Days on Market937
Property Features for 1 Railroad Avenue
General Information
Standard status
Active
Size
1,618 SF
Property subtype
Commercial
Zoning
YBVC
Taxes and HOA fees
Annual Taxes
$3,936
Building Details
Building Size
1,618 SF
Year Built
2004
Stories
2
Construction
Freestanding
Listing Agency:
The Boulos Company
(207) 553-1728
Listed By:
Christopher Gallagher
(207) 553-1728
Source:
Startpoint
Added: Jan 17, 2024
Changed: Aug 10
Last Checked: Aug 11 at 2:16PM
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 The Boulos Company
Investment Insights
Based on property information with market context.
This freestanding restaurant property contains 1,618 square feet and was built in 2004. It previously operated as Sandy’s Purple Palace Diner, providing a documented restaurant use for the building. The property is zoned YBVC.
Located at 1 Railroad Avenue in York, Maine, the building sits within the York Beach Commercial District and is within walking distance of Short Sands Beach. The surrounding commercial setting includes The Golden Rod across the street, Molly O’s next door, and additional shops, restaurants, and hotels nearby.
Located at 1 Railroad Avenue in York, Maine, the building sits within the York Beach Commercial District and is within walking distance of Short Sands Beach. The surrounding commercial setting includes The Golden Rod across the street, Molly O’s next door, and additional shops, restaurants, and hotels nearby.
Key Highlights
- 1,618‑square‑foot freestanding restaurant building
- Built in 2004
- Former Sandy’s Purple Palace Diner location
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
$19,569
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
2.82%
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%
$391,380
$391.4K
Cap Rate 7%
$279,557
$279.6K
Cap Rate 9%
$217,433
$217.4K
Market Conditions
NOI Build-Up for 1,618 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
$29.1K $18.00/SF
− Vacancy
−$3.0K −$1.87/SF
EGI
$26.1K $16.13/SF
− OpEx
−$6.5K −$4.03/SF
NOI
$19.6K $12.09/SF
Area
York County, ME
Vacancy
10.41%
Lease Rate
$18.00 /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%
$391,380
Cap Rate 7%
$279,557
Cap Rate 9%
$217,433
Alternative Uses
Best Use
Specialty Retail
$279.6K
$244.6K – $326.2K
NOI $19,569 @ 7.0% cap · market cap 2.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$512.9K
$448.8K – $598.4K
NOI $35,903 @ 7.0% cap · market cap 5.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
173
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 03909, ME
10,938
Population
7,101
Households
1.5
Avg Household Size
53
Median Age
50%
College-Educated
98%
High-School Grad
35.2 sq mi
ZIP Area
311
Density / Sq Mi
$108,889
Median Household Income
$55,540
Median Earnings
$1,438
Median Rent
$589,400
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established commercial district setting near Short Sands Beach with neighboring shops, restaurants, and hotels.
Where is this conventional restaurant located?
The property is located at 1 Railroad Avenue York, ME.
What is the asking price?
The asking price for this property is $695,000.
What are key features of this property?
This property features: 1,618‑square‑foot freestanding restaurant building; Built in 2004; Former Sandy’s Purple Palace Diner location
