Restaurant with Water Wheel
For Sale
$1,150,000
2888 NY-28, Old Forge, NY 13420
Commercial Sale, Old Forge, NY
Property Size5,022 SF
Lot Size0.94 Acres
Price / SF$228.99
Days on Market341
Property Features for 2888 NY-28
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Commercial
Parking
40
Parking features
Off Street, Parking Lot
Interior features
Bar, Ceiling Fan(s), Entrance Foyer, Natural Woodwork, Vaulted Ceiling(s)
Exterior features
Lighting
Fireplace
1
Basement
Block, Storage Space, Interior Entry, Full
Appliances
Bar Fridge, Built-In Freezer, Built-In Refrigerator, Convection Oven, Cooktop, Dishwasher, Exhaust Fan, Free-Standing Gas Oven, Free-Standing Refrigerator, Gas Cooktop, Gas Oven, Ice Maker, Microwave, Oven, Plumbed For Ice Maker, Propane Cooktop, Stainless Steel Appliance(s), Walk-In Cooler(s), Washer/Dryer, Water Heater
View
River
Elementary school district
Town of Webb UFSD
Middle school district
Town of Webb UFSD
High school district
Town of Webb UFSD
Directions
From Old Forge, NY, travel South to 2888 State Route 28, right before the Thendara bridge
Subdivision
Old Forge, Inlet, Eagle Bay, Big Moose
Standard status
Active
APN
041.58-4-1
Size
5,022 SF
Lot size
0.94 Acres
Taxes and HOA fees
Tax Annual Amount
12648
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Forced Air, Propane (Heating), Wood Stove, Wood, Fireplace(s), Hot Water(Heating), Propane Stove, Oil
Cooling system
Ceiling Fan(s)
Water source
Public
Water front features
River Front
Water front
1
Building Details
Year built
1960
Flooring type
Laminate, Tile
Building materials
Attic/Crawl Hatchway(s) Insulated, Wood Siding
Roof type
Asphalt
Listing Agency:
Timm Associates Sothebys International Realty
(315) 369-3951
Listed By:
Amy Bolton
(315) 369-8903
Added: Sep 14, 2025
Changed: Aug 19
Last Checked: Aug 20 at 10:06AM
MLS# 205783
Copyright © 2026 Adirondack Champlain Valley MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The Mill Restaurant is a recognizable landmark at the gateway to the Old Forge commercial district, featuring an iconic water wheel and an expansive covered porch. Guests are welcomed at a dedicated host station and may dine in a rustic Adirondack-style dining room anchored by a stone fireplace with hanging stained-glass lamps, or at the knotty-pine bar with vaulted ceilings, a woodstove, and a fully stocked eight-tap bar. A fully equipped commercial kitchen supports daily operations.
Behind the scenes, the property includes a full basement with a bar cooler, laundry, and storage, plus an upstairs office with attic storage. Ample on-site parking serves both patrons and staff. The offering comprises four parcels in total: the restaurant at 2888 State Route 28, the two-bedroom home at 106 River Street, and two additional parcels providing live/work convenience.
The property sits on 0.94 acres (5,022 SF) and was built in 1960. Construction includes wood siding with an asphalt roof. Water is public and sewer is public sewer, with cable available.
Behind the scenes, the property includes a full basement with a bar cooler, laundry, and storage, plus an upstairs office with attic storage. Ample on-site parking serves both patrons and staff. The offering comprises four parcels in total: the restaurant at 2888 State Route 28, the two-bedroom home at 106 River Street, and two additional parcels providing live/work convenience.
The property sits on 0.94 acres (5,022 SF) and was built in 1960. Construction includes wood siding with an asphalt roof. Water is public and sewer is public sewer, with cable available.
Key Highlights
- Iconic water wheel and expansive covered porch at the entrance to town
- Moose River frontage with dining access from the bar and covered porch
- Fully equipped commercial kitchen plus full basement with bar cooler, laundry, and storage
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
$64,950
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
5.65%
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%
$1,299,000
$1.3M
Cap Rate 7%
$927,857
$927.9K
Cap Rate 9%
$721,667
$721.7K
Market Conditions
NOI Build-Up for 5,022 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
$90.4K $18.00/SF
− Vacancy
−$3.8K −$0.76/SF
EGI
$86.6K $17.24/SF
− OpEx
−$21.6K −$4.31/SF
NOI
$64.9K $12.93/SF
Area
Herkimer County, NY
Vacancy
4.20%
Lease Rate
$18.00 /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%
$1,299,000
Cap Rate 7%
$927,857
Cap Rate 9%
$721,667
Alternative Uses
Best Use
Specialty Retail
$927.9K
$811.9K – $1.08M
NOI $64,950 @ 7.0% cap · market cap 5.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.49M
$1.31M – $1.74M
NOI $104,635 @ 7.0% cap · market cap 9.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
212
Businesses Nearby
Explore this area
Business Placement
Demographics for 13420, NY
1,263
Population
2,441
Households
0.5
Avg Household Size
55
Median Age
62%
College-Educated
91%
High-School Grad
148.2 sq mi
ZIP Area
9
Density / Sq Mi
$107,770
Median Household Income
$47,346
Median Earnings
$348,900
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?
Conventional restaurant - Freestanding restaurant with river frontage, covered porch, and fully equipped commercial kitchen.
Where is this conventional restaurant located?
The property is located at 2888 NY-28 Old Forge, NY.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Iconic water wheel and expansive covered porch at the entrance to town; Moose River frontage with dining access from the bar and covered porch; Fully equipped commercial kitchen plus full basement with bar cooler, laundry, and storage
