Renovated Mixed-Use
For Sale
$1,295,000
3 E Grand Avenue, Scarborough, ME 04074
Combines a fully equipped restaurant, gift shop, two apartments, outdoor patio, and on-site parking in one versatile property.
Property Size7,960 SF
Price / SF$162.69
Days on Market60
Property Features for 3 E Grand Avenue
General Information
Standard status
Active
Size
7,960 SF
Total Parking Spaces
30
Property subtype
Commercial
Lease Term
[]
Additional Details
Patio
Yes
Amenities
gas fire pit
dedicated green space
Building Details
Year Built
1940
Year Renovated
2017
Tenancy
Multi
Listing Agency:
F.O. Bailey Real Estate
(207) 409-8339
Listed By:
Thomas Gadbois · License #BA918504
(207) 409-8339
Source:
Fobaileyrealestate
Added: Jul 3
Changed: Aug 29
Last Checked: Aug 30 at 6:13PM
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 F.O. Bailey Real Estate
Investment Insights
Based on property information with market context.
This 7,960 SF mixed-use property at 3 E Grand Ave in Scarborough includes a 4,000 SF restaurant, a gift shop, and two second-floor three-bedroom apartments. The restaurant is equipped for operation and provides seating for over 130 guests. An outdoor patio with a gas fire pit extends the restaurant’s usable space, while dedicated green space serves tenants. The property was built in 1940 and updated in 2017.
Approximately 30 on-site parking spaces support restaurant customers and residential occupants. The property is located in the Pine Point area of Scarborough, near Pine Point Beach and Old Orchard Beach. Its combination of restaurant, retail, and residential components creates a varied mixed-use configuration within a single building.
Approximately 30 on-site parking spaces support restaurant customers and residential occupants. The property is located in the Pine Point area of Scarborough, near Pine Point Beach and Old Orchard Beach. Its combination of restaurant, retail, and residential components creates a varied mixed-use configuration within a single building.
Key Highlights
- 7,960 SF mixed‑use property at 3 E Grand Ave, Scarborough, ME 04074
- 4,000 SF restaurant with seating for over 130 guests
- Two second‑floor 3‑bedroom 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
$98,863
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
7.63%
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%
$1,977,260
$2.0M
Cap Rate 7%
$1,412,329
$1.4M
Cap Rate 9%
$1,098,478
$1.1M
Market Conditions
NOI Build-Up for 7,960 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
$171.9K $21.60/SF
− Vacancy
−$13.8K −$1.73/SF
EGI
$158.2K $19.87/SF
− OpEx
−$59.3K −$7.45/SF
NOI
$98.9K $12.42/SF
Area
Cumberland County, ME
Vacancy
8.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,977,260
Cap Rate 7%
$1,412,329
Cap Rate 9%
$1,098,478
Alternative Uses
Best Use
Apartment 5plus
$1.87M
$1.64M – $2.18M
NOI $130,867 @ 7.0% cap · market cap 10.11%
Second Best
Mixed Use
$1.41M
$1.24M – $1.65M
NOI $98,863 @ 7.0% cap · market cap 7.63%
Theoretical Best
Office A
$2.19M
$1.91M – $2.55M
NOI $153,147 @ 7.0% cap · market cap 11.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
120
Businesses Nearby
Explore this area
Business Placement
Demographics for 04074, ME
21,952
Population
10,561
Households
2.1
Avg Household Size
46
Median Age
58%
College-Educated
99%
High-School Grad
47.6 sq mi
ZIP Area
461
Density / Sq Mi
$125,642
Median Household Income
$55,955
Median Earnings
$1,821
Median Rent
$502,700
Median Home Value
Market
Vacancy Rate% for Retail 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?
Mixed-use property - Combines a fully equipped restaurant, gift shop, two apartments, outdoor patio, and on-site parking in one versatile property.
Where is this mixed-use property located?
The property is located at 3 E Grand Avenue Scarborough, ME.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: 7,960 SF mixed‑use property at 3 E Grand Ave, Scarborough, ME 04074; 4,000 SF restaurant with seating for over 130 guests; Two second‑floor 3‑bedroom apartments
