Mixed-Use Building with
For Sale
$425,000
87 Main Street, Newport, ME 04953
The property combines business space with two residential apartments and an attached barn on a 1.22-acre parcel.
Property Size4,592 SF
Lot Size1.22 Acres
Days on Market1083
Property Features for 87 Main Street
General Information
Standard status
Active
Size
4,592 SF
Lot size
1.22 Acres
Property subtype
Commercial
Zoning
Village Commercial
Taxes and HOA fees
Annual Taxes
$5,877
Amenities
newly paved parking
attached barn for storage
Building Details
Building Size
4,592 SF
Year Built
1900
Stories
3
Listing Agency:
Berkshire Hathaway HomeServices Northeast Real Estate
(207) 270-0211
Listed By:
Lea Worster
(207) 270-0211
Source:
Startpoint
Added: Sep 5, 2023
Changed: Aug 17
Last Checked: Aug 21 at 1:31PM
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 Berkshire Hathaway HomeServices Northeast Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property includes commercial space that is being expanded into one larger business area while retaining the ability to accommodate two separate businesses. The building also includes two residential apartments: a one-bedroom unit and a three-bedroom unit. The property was built in 1900 and carries Village Commercial zoning.
A three-level barn is attached to the building and provides storage or additional functional space. The 1.22-acre parcel includes newly paved parking, with room associated with the existing improvements and possible future expansion subject to town approval. The property is located at 87 Main Street in Newport, Maine.
A three-level barn is attached to the building and provides storage or additional functional space. The 1.22-acre parcel includes newly paved parking, with room associated with the existing improvements and possible future expansion subject to town approval. The property is located at 87 Main Street in Newport, Maine.
Key Highlights
- Two residential apartments: one bedroom and three bedrooms
- Commercial layout can accommodate one larger business or two businesses
- 1.22‑acre parcel with newly paved 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
$38,705
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
9.11%
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%
$774,100
$774.1K
Cap Rate 7%
$552,929
$552.9K
Cap Rate 9%
$430,056
$430.1K
Market Conditions
NOI Build-Up for 4,592 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
$74.4K $16.20/SF
− Vacancy
−$4.0K −$0.87/SF
EGI
$70.4K $15.33/SF
− OpEx
−$31.7K −$6.90/SF
NOI
$38.7K $8.43/SF
Area
Penobscot County, ME
Vacancy
5.40%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$774,100
Cap Rate 7%
$552,929
Cap Rate 9%
$430,056
Alternative Uses
Best Use
Multifamily LT 5
$601.2K
$526.0K – $701.4K
NOI $42,083 @ 7.0% cap · market cap 9.90%
Second Best
Apartment 5plus
$552.9K
$483.8K – $645.1K
NOI $38,705 @ 7.0% cap · market cap 9.11%
Theoretical Best
Office A
$1.48M
$1.30M – $1.73M
NOI $103,816 @ 7.0% cap · market cap 24.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
Explore this area
Business Placement
Demographics for 04953, ME
3,139
Population
1,830
Households
1.7
Avg Household Size
47
Median Age
29%
College-Educated
92%
High-School Grad
29.5 sq mi
ZIP Area
106
Density / Sq Mi
$62,708
Median Household Income
$46,538
Median Earnings
$884
Median Rent
$213,400
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - The property combines business space with two residential apartments and an attached barn on a 1.22-acre parcel.
Where is this mixed-use property located?
The property is located at 87 Main Street Newport, ME.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Two residential apartments: one bedroom and three bedrooms; Commercial layout can accommodate one larger business or two businesses; 1.22‑acre parcel with newly paved parking
