Mixed-Use Restaurant
For Sale
$545,000
264 Sebago Road, Sebago, ME 04029
Restaurant and ice cream operations occupy the first floor, with a four-bedroom apartment above.
Property Size2,328 SF
Price / SF$234.11
Days on Market10
Property Features for 264 Sebago Road
General Information
Standard status
Active
Size
2,328 SF
Property subtype
Commercial
Financials
Average Monthly Rent
$2,000
Business Included
Yes
Units
Unit Mix
1 x 4BR
Multifamily Units
1
Additional Details
Road Access
Yes
Equipment Included
Yes
Building Details
Year Built
1954
Listing Agency:
PO-GO REALTY
Listed By:
Peter Mason
(603) 433-3350
Source:
Greatislandrealty
Added: Aug 13
Changed: Aug 21
Last Checked: Aug 21 at 11:38AM
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 PO-GO REALTY
Investment Insights
Based on property information with market context.
Built in 1954, this 2,328-square-foot mixed-use property combines a first-floor restaurant and ice cream operation with a residential unit upstairs. The commercial space includes equipment, and the business name conveys with the sale. A four-bedroom apartment occupies the upper level and is currently rented, creating a separate residential component within the property.
The property is located at 264 Sebago Road in Sebago, Maine, along Route 114. Its setting places it near Town Beach, Long Beach Marina, Sportsman's Kitchen & Keg, Jordan's Store, Sebago Lake Marina, and Sebago Family Campground. Road frontage and steady traffic at 35MPH support the site's commercial exposure, while the combination of restaurant, ice cream, and apartment uses gives the building a clearly defined mixed-use configuration.
The property is located at 264 Sebago Road in Sebago, Maine, along Route 114. Its setting places it near Town Beach, Long Beach Marina, Sportsman's Kitchen & Keg, Jordan's Store, Sebago Lake Marina, and Sebago Family Campground. Road frontage and steady traffic at 35MPH support the site's commercial exposure, while the combination of restaurant, ice cream, and apartment uses gives the building a clearly defined mixed-use configuration.
Key Highlights
- 2,328 SF mixed‑use property built in 1954
- First‑floor restaurant and ice cream operation with equipment included
- Business name conveys with the sale
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
$38,274
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
7.02%
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%
$765,480
$765.5K
Cap Rate 7%
$546,771
$546.8K
Cap Rate 9%
$425,267
$425.3K
Market Conditions
NOI Build-Up for 2,328 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
$74.0K $31.80/SF
− Vacancy
−$4.4K −$1.91/SF
EGI
$69.6K $29.89/SF
− OpEx
−$31.3K −$13.45/SF
NOI
$38.3K $16.44/SF
Area
Cumberland County, ME
Vacancy
6.00%
Lease Rate
$31.80 /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%
$765,480
Cap Rate 7%
$546,771
Cap Rate 9%
$425,267
Alternative Uses
Best Use
Apartment 5plus
$546.8K
$478.4K – $637.9K
NOI $38,274 @ 7.0% cap · market cap 7.02%
Second Best
Mixed Use
$413.1K
$361.4K – $481.9K
NOI $28,914 @ 7.0% cap · market cap 5.31%
Theoretical Best
Office A
$639.9K
$559.9K – $746.5K
NOI $44,790 @ 7.0% cap · market cap 8.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Explore this area
Business Placement
Demographics for 04029, ME
1,917
Population
1,506
Households
1.3
Avg Household Size
47
Median Age
24%
College-Educated
87%
High-School Grad
32.9 sq mi
ZIP Area
58
Density / Sq Mi
$71,845
Median Household Income
$40,838
Median Earnings
$1,302
Median Rent
$272,900
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Restaurant and ice cream operations occupy the first floor, with a four-bedroom apartment above.
Where is this mixed-use property located?
The property is located at 264 Sebago Road Sebago, ME.
What is the asking price?
The asking price for this property is $545,000.
What are key features of this property?
This property features: 2,328 SF mixed‑use property built in 1954; First‑floor restaurant and ice cream operation with equipment included; Business name conveys with the sale
