Renovated Brewery and Event
For Sale
$2,575,000
22 Cottage Street, Middletown, NY 10940
Multifunctional hospitality property with dining, entertainment, private-event, and residential components in a renovated historic industrial building.
Property Size23,400 SF
Days on Market367
Property Features for 22 Cottage Street
General Information
Standard status
Active
Size
23,400 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Patio
Yes
Taxes and HOA fees
Annual Taxes
$64,000
Building Details
Building Size
23,400 SF
Buildings
1
Units
6
Listing Agency:
Keller Williams Realty
(845) 494-3749
Listed By:
Chris Scibelli · License #10491200206
(845) 494-3749
Source:
Mahlerrealty
Added: Aug 28, 2025
Changed: Aug 28
Last Checked: Aug 28 at 11:30AM
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 brewery property occupies a renovated 19th-century hacksaw factory at 22 Cottage Street in Middletown, NY. The approximately 24,000-square-foot venue includes a taproom, banquet room, restaurant operations, a separate axe-throwing and entertainment area known as The Zone, and five residential apartments. The property also includes a full food menu, dedicated axe-throwing lanes, live entertainment programming, and private-event hosting for weddings, parties, and corporate gatherings.
Outdoor amenities include a 7,500-square-foot beer garden with a stone facade and red-brick patio, used seasonally for dining, drinks, entertainment, and private parties. Public parking accommodates events of varying sizes, while the business is fully operational with bookings extending into 2026. The venue has hosted live music, DJ nights, trivia, cornhole leagues, and seasonal events.
Outdoor amenities include a 7,500-square-foot beer garden with a stone facade and red-brick patio, used seasonally for dining, drinks, entertainment, and private parties. Public parking accommodates events of varying sizes, while the business is fully operational with bookings extending into 2026. The venue has hosted live music, DJ nights, trivia, cornhole leagues, and seasonal events.
Key Highlights
- 24,000‑square‑foot brewery, restaurant, event, entertainment, and residential property
- Renovated 19th‑century hacksaw factory at 22 Cottage Street, Middletown, NY 10940
- Five residential apartments integrated into the property
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
$203,440
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
7.90%
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%
$4,068,800
$4.1M
Cap Rate 7%
$2,906,286
$2.9M
Cap Rate 9%
$2,260,444
$2.3M
Market Conditions
NOI Build-Up for 23,400 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
$280.8K $12.00/SF
− Vacancy
−$9.5K −$0.41/SF
EGI
$271.3K $11.59/SF
− OpEx
−$67.8K −$2.90/SF
NOI
$203.4K $8.69/SF
Area
Orange County, NY
Vacancy
3.40%
Lease Rate
$12.00 /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%
$4,068,800
Cap Rate 7%
$2,906,286
Cap Rate 9%
$2,260,444
Alternative Uses
Best Use
Specialty Retail
$2.91M
$2.54M – $3.39M
NOI $203,440 @ 7.0% cap · market cap 7.90%
Second Best
Industrial
$2.73M
$2.39M – $3.18M
NOI $190,879 @ 7.0% cap · market cap 7.41%
Theoretical Best
Office A
$7.93M
$6.93M – $9.25M
NOI $554,771 @ 7.0% cap · market cap 21.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Brewery - Multifunctional hospitality property with dining, entertainment, private-event, and residential components in a renovated historic industrial building.
Where is this brewery located?
The property is located at 22 Cottage Street 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: 24,000‑square‑foot brewery, restaurant, event, entertainment, and residential property; Renovated 19th‑century hacksaw factory at 22 Cottage Street, Middletown, NY 10940; Five residential apartments integrated into the property
