Mixed-Use Investment
For Sale
Contact for pricing
165-172 Hanover Street, Portsmouth, NH 03801
Mixed-use property with income and growth potential in downtown location.
Property Size12,780 SF
Price / SF$375.59
Days on Market157
Property Features for 165-172 Hanover Street
General Information
Standard status
Active
Size
12,780 SF
Class
A
Property subtype
Retail
Zoning
CD-5
Net Operating Income
$174,501
Building Details
Year Built
1850
Year Renovated
2020
Buildings
1
Stories
2
Listing Agency:
Re/Max Partners
(774) 696-1810
Listed By:
James Kalogeropoulos · License #9072828
Source:
Crexi
Added: Mar 7
Changed: Aug 8
Last Checked: Aug 8 at 6:36AM
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 Re/Max Partners
Investment Insights
Based on property information with market context.
The property at 165-172 Hanover Street is a mixed-use investment opportunity situated in a walkable downtown location. The first floor is occupied by La Carreta, a Mexican restaurant, providing in-place income. The ground level, formerly a nightclub, offers leasing potential for restaurant, entertainment, or retail use. The second floor may be approved for residential use and potentially permitted for two units. These unfinished spaces offer potential for luxury rentals, owner occupancy, or condominium conversion. The property is surrounded by boutique hotels, restaurants, galleries, public parking, and major institutions, benefiting from foot traffic, tourism, and local demand. The property size is 12780 square feet.
Key Highlights
- Prime mixed‑use investment property in a vibrant, walkable downtown location.
- Established Mexican restaurant (La Carreta) provides stable in‑place income.
- Ground level offers strong leasing potential for restaurant, entertainment, or retail use.
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
$199,169
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
4.15%
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%
$3,983,380
$4.0M
Cap Rate 7%
$2,845,271
$2.8M
Cap Rate 9%
$2,212,989
$2.2M
Market Conditions
NOI Build-Up for 12,780 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
$276.0K $21.60/SF
− Vacancy
−$10.5K −$0.82/SF
EGI
$265.6K $20.78/SF
− OpEx
−$66.4K −$5.19/SF
NOI
$199.2K $15.58/SF
Area
Strafford County, NH
Vacancy
3.80%
Lease Rate
$21.60 /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%
$3,983,380
Cap Rate 7%
$2,845,271
Cap Rate 9%
$2,212,989
Alternative Uses
Best Use
Specialty Retail
$2.85M
$2.49M – $3.32M
NOI $199,169 @ 7.0% cap · market cap 4.15%
Second Best
Mixed Use
$1.84M
$1.61M – $2.14M
NOI $128,559 @ 7.0% cap · market cap 2.68%
Theoretical Best
Office A
$3.42M
$2.99M – $3.99M
NOI $239,334 @ 7.0% cap · market cap 4.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,830
Businesses Nearby
61k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 64%
Shops & Services 24%
Dining 10%
Home Improvements & Furnishings 3%
Hilton Garden Inn Portsmouth Downtown
Hotels & Casinos
12,451 visits/mo
0.2 miles
Hampton Inn & Suites Portsmouth
Hotels & Casinos
9,382 visits/mo
0.1 miles
Residence Inn Portsmouth Downtown/Waterfront
Hotels & Casinos
8,761 visits/mo
0.2 miles
Sheraton Portsmouth Harborside Hotel
Hotels & Casinos
8,034 visits/mo
0.3 miles
La Carreta
Dining
5,807 visits/mo
0.1 miles
Demographics for 03801, NH
22,767
Population
11,448
Households
2
Avg Household Size
43
Median Age
63%
College-Educated
98%
High-School Grad
23.8 sq mi
ZIP Area
957
Density / Sq Mi
$106,520
Median Household Income
$65,984
Median Earnings
$1,783
Median Rent
$647,500
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?
Mixed-use property - Mixed-use property with income and growth potential in downtown location.
Where is this mixed-use property located?
The property is located at 165-172 Hanover Street Portsmouth, NH.
What is the asking price?
The asking price for this property is $4,800,000.
What are key features of this property?
This property features: Prime mixed‑use investment property in a vibrant, walkable downtown location.; Established Mexican restaurant (La Carreta) provides stable in‑place income.; Ground level offers strong leasing potential for restaurant, entertainment, or retail use.
