Iconic Brewery & Entertainment
For Sale
$2,575,000
22 Cottage St, Middletown, NY 10940
Fully operational brewery, restaurant, and entertainment venue with apartments.
Property Size23,400 SF
Lot Size0.83 Acres
Price / SF$107.29
Days on Market163
Property Features for 22 Cottage St
General Information
Standard status
Active
Size
23,400 SF
Lot size
0.83 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$64,000
Building Details
Building Size
23,400 SF
Units
6
Listing Agency:
Keller Williams Realty
(845) 494-3749
Listed By:
Kevin M. Tuhy · License #10491200206
Source:
Elliman
Added: Mar 11
Changed: Aug 14
Last Checked: Aug 20 at 9:37AM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This iconic property features the Clemson Bros. Brewery, a craft brewery and restaurant rooted in local history, situated in a renovated 19th-century hacksaw factory. The property includes an industrial-chic taproom, a banquet room for indoor events, and "The Zone," a separate entertainment area. The brewery has 5 residential apartments utilizing unique design elements. A 7,500-square-foot outdoor space with a stone facade and red-brick patio is available during warmer months for drinking, dining, and private parties. The venue regularly hosts live music from local bands, DJ nights, trivia, and seasonal events. "The Zone @ Clemson" offers an onsite axe-throwing facility with dedicated lanes and regular cornhole leagues. The brewery offers full-service event hosting for weddings, parties, and corporate gatherings. The business is fully operational with bookings well into 2026. The property offers 24000 square feet of creative entertaining spaces and plenty of public parking for all size events.
Key Highlights
- Fully operational craft brewery and restaurant business with bookings into 2026
- Iconic location in a renovated 19th‑century landmark building featuring an industrial‑chic design
- Multiple revenue streams including taproom, beer garden, full food menu, live entertainment, axe throwing, and 5 residential apartments
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
$195,774
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
7.60%
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%
$3,915,480
$3.9M
Cap Rate 7%
$2,796,771
$2.8M
Cap Rate 9%
$2,175,267
$2.2M
Market Conditions
NOI Build-Up for 24,000 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
$337.0K $14.04/SF
− Vacancy
−$57.3K −$2.39/SF
EGI
$279.7K $11.65/SF
− OpEx
−$83.9K −$3.50/SF
NOI
$195.8K $8.16/SF
Area
Orange County, NY
Vacancy
17.00%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
30.00%
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%
$3,915,480
Cap Rate 7%
$2,796,771
Cap Rate 9%
$2,175,267
Alternative Uses
Best Use
Apartment 5plus
$6.41M
$5.61M – $7.48M
NOI $448,931 @ 7.0% cap · market cap 17.43%
Second Best
Industrial
$2.80M
$2.45M – $3.26M
NOI $195,774 @ 7.0% cap · market cap 7.60%
Theoretical Best
Office A
$8.13M
$7.11M – $9.48M
NOI $568,996 @ 7.0% cap · market cap 22.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,550
Businesses Nearby
Explore this area
Business Placement
Demographics for 10940, NY
52,803
Population
19,930
Households
2.6
Avg Household Size
39
Median Age
24%
College-Educated
86%
High-School Grad
63.1 sq mi
ZIP Area
837
Density / Sq Mi
$87,198
Median Household Income
$46,435
Median Earnings
$1,600
Median Rent
$301,400
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?
Brewery - Fully operational brewery, restaurant, and entertainment venue with apartments.
Where is this brewery located?
The property is located at 22 Cottage St Middletown, NY.
What is the asking price?
The asking price for this property is $2,575,000.
What are key features of this property?
This property features: Fully operational craft brewery and restaurant business with bookings into 2026; Iconic location in a renovated 19th‑century landmark building featuring an industrial‑chic design; Multiple revenue streams including taproom, beer garden, full food menu, live entertainment, axe throwing, and 5 residential apartments
