Versatile Investment Property in
For Sale
$2,200,000
Pending
28 Pelham, Newport, RI 02840
Multi-tenant building in historic downtown Newport, ideal for various uses.
Property Size10,800 SF
Lot Size0.12 Acres
Days on Market161
Property Features for 28 Pelham
General Information
Standard status
Pending
Size
10,800 SF
Lot size
0.12 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$13,249
Amenities
Central air
Central Air Cooling
Forced Air Heating
Historic District
Building Details
Year Built
1900
Listing Agency:
KIRBY & KIRBY
(401) 324-0048
Listed By:
THE KIRBY & KIRBY TEAM
Source:
Corcoran
Added: Mar 4
Changed: Aug 8
Last Checked: Aug 8 at 6:27AM
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 KIRBY & KIRBY
Investment Insights
Based on property information with market context.
Located in the heart of historic downtown Newport, one block from Bowens Wharf and Thames Street, the three-story building at 28 Pelham Street offers 10,800 square feet of space with a full basement. The property is currently operating as a multi-tenant office building with 16 individual tenants on yearly leases, generating consistent income. The property's zoning, General Business, allows for alternative uses, including residential conversion and transient guest facilities, subject to city approvals. The well-laid-out floor plans across three full stories make it suitable for an owner-occupant seeking a signature headquarters, a developer with an eye toward adaptive reuse, or an investor looking to hold a stabilized asset in a high-demand location. It is being offered as an occupied investment property, or for residential conversion, or as a boutique hotel.
Key Highlights
- Prime location in historic downtown Newport, one block from Bowens Wharf and Thames Street.
- Substantial 10,800 sq ft building with a full basement, offering significant space and potential.
- Currently operating as a multi‑tenant office building with 16 tenants and generating consistent income.
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
$103,326
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
4.70%
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%
$2,066,520
$2.1M
Cap Rate 7%
$1,476,086
$1.5M
Cap Rate 9%
$1,148,067
$1.1M
Market Conditions
NOI Build-Up for 10,800 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
$173.7K $16.08/SF
− Vacancy
−$35.9K −$3.32/SF
EGI
$137.8K $12.76/SF
− OpEx
−$34.4K −$3.19/SF
NOI
$103.3K $9.57/SF
Area
Newport County, RI
Vacancy
20.67%
Lease Rate
$16.08 /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%
$2,066,520
Cap Rate 7%
$1,476,086
Cap Rate 9%
$1,148,067
Alternative Uses
Best Use
Office B
$1.48M
$1.29M – $1.72M
NOI $103,326 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.58M
$2.25M – $3.01M
NOI $180,384 @ 7.0% cap · market cap 8.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,548
Businesses Nearby
Explore this area
Business Placement
Demographics for 02840, RI
23,902
Population
13,515
Households
1.8
Avg Household Size
40
Median Age
55%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,274
Density / Sq Mi
$83,515
Median Household Income
$41,228
Median Earnings
$1,610
Median Rent
$669,500
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Multi-tenant building in historic downtown Newport, ideal for various uses.
Where is this office building located?
The property is located at 28 Pelham Newport, RI.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Prime location in historic downtown Newport, one block from Bowens Wharf and Thames Street.; Substantial 10,800 sq ft building with a full basement, offering significant space and potential.; Currently operating as a multi‑tenant office building with 16 tenants and generating consistent income.
