Mixed-Use Commercial Building on Route
For Sale
Contact for pricing
Pending
2121 Elmwood Avenue, Warwick, RI 02888
Five-unit commercial building with warehouse, retail, and office spaces.
Property Size7,500 SF
Days on Market712
Property Features for 2121 Elmwood Avenue
General Information
Standard status
Pending
Size
7,500 SF
Total Parking Spaces
14
Property subtype
Office, Retail, Industrial
Building Details
Year Built
1989
Buildings
1
Stories
2
Units
5
Listing Agency:
Green Island Realty, Inc.
(401) 286-8898
Listed By:
Feng Lei · License #REC.0016670
Source:
Crexi
Added: Aug 30, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:35AM
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 Green Island Realty, Inc.
Investment Insights
Based on property information with market context.
This is a solid five-unit commercial building situated on the high-traffic intersection of Route 1 and Elmwood Avenue. The property includes a large warehouse and retail space featuring one loading dock and a drive-in garage with 800 square feet. The warehouse/retail space is currently subdivided into two units, with an office area located on the second floor. The building also houses an established coffee and ice cream store with patio seating, a hair salon, and a music studio. The property is occupied by long-term tenants, making it a potential investment opportunity. The warehouse with the drive-in garage is available for lease. The property size is 7,500 square feet.
Key Highlights
- High‑traffic location on Rt. 1 and Elmwood Ave.
- Solid 5‑unit commercial building.
- Large warehouse/retail space with loading dock and drive‑in garage (800 sqft).
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
$36,529
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
5.54%
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%
$730,580
$730.6K
Cap Rate 7%
$521,843
$521.8K
Cap Rate 9%
$405,878
$405.9K
Market Conditions
NOI Build-Up for 7,500 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
$45.0K $6.00/SF
− Vacancy
−$2.0K −$0.27/SF
EGI
$43.0K $5.73/SF
− OpEx
−$6.4K −$0.86/SF
NOI
$36.5K $4.87/SF
Area
Kent County, RI
Vacancy
4.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
15.00%
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%
$730,580
Cap Rate 7%
$521,843
Cap Rate 9%
$405,878
Alternative Uses
Best Use
Specialty Retail
$1.88M
$1.64M – $2.19M
NOI $131,490 @ 7.0% cap · market cap 19.93%
Second Best
Retail
$1.39M
$1.21M – $1.62M
NOI $96,952 @ 7.0% cap · market cap 14.69%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
505
Businesses Nearby
Explore this area
Business Placement
Demographics for 02888, RI
19,578
Population
9,117
Households
2.1
Avg Household Size
46
Median Age
32%
College-Educated
96%
High-School Grad
5.9 sq mi
ZIP Area
3,318
Density / Sq Mi
$88,750
Median Household Income
$55,561
Median Earnings
$1,218
Median Rent
$318,100
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Five-unit commercial building with warehouse, retail, and office spaces.
Where is this mixed-use property located?
The property is located at 2121 Elmwood Avenue Warwick, RI.
What is the asking price?
The asking price for this property is $659,900.
What are key features of this property?
This property features: High‑traffic location on Rt. 1 and Elmwood Ave.; Solid 5‑unit commercial building.; Large warehouse/retail space with loading dock and drive‑in garage (800 sqft).
