Mixed-Use Property with Restaurant
For Sale
$1,295,000
3 E Grand Avenue, Scarborough, ME 04074
Commercial Sale, Scarborough, ME
Property Size7,960 SF
Lot Size1.30 Acres
Price / SF$162.69
Days on Market46
Property Features for 3 E Grand Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Town Village Center
Rooms
Basement
Lot features
Water View
Standard status
Active
Size
7,960 SF
Lot size
1.30 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
17336
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Propane (Heating), Oil, Heat Pump (Heating)
Water source
Public
Amenities
gas fire pit
dedicated green space
Building Details
Year built
1940
Building materials
Wood Frame, Wood Siding
Roof type
Shingle
Listing Agency:
F.O. Bailey Real Estate
(207) 781-1111
Listed By:
Thomas Gadbois · License #BA918504
(207) 409-8339
Added: Jul 7
Changed: Aug 19
Last Checked: Aug 21 at 7:06PM
MLS# 1670684
Copyright © 2026 Maine Listings. 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.
This mixed-use property includes a turnkey restaurant space, a gift shop retail space, and two 3-bedroom apartments on the second floor. The building was updated in 2017 and features 7,960± SF total area with the restaurant occupying 4,000± SF and offering seating for over 130 guests. The restaurant includes an outdoor patio with a gas fire pit, along with basement space listed in the room details.
The property is on a 1.3-acre lot and is served by public water and public sewer. Heating includes forced air, heat pump (heating), oil, and propane (heating), and the roof is shingle. Zoning is Town Village Center, and the site provides approximately 30 on-site parking spaces for customers and residents.
The asset is constructed with wood frame and wood siding and was built in 1940, offering an owner-user or multi-tenant setup with restaurant, retail, and residential components under one roof.
The property is on a 1.3-acre lot and is served by public water and public sewer. Heating includes forced air, heat pump (heating), oil, and propane (heating), and the roof is shingle. Zoning is Town Village Center, and the site provides approximately 30 on-site parking spaces for customers and residents.
The asset is constructed with wood frame and wood siding and was built in 1940, offering an owner-user or multi-tenant setup with restaurant, retail, and residential components under one roof.
Key Highlights
- 7,960± SF mixed‑use property on a 1.3‑acre lot
- 4,000± SF turnkey restaurant space fully equipped
- Outdoor patio with a gas fire pit plus seating for over 130 guests
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
Multifamily LT 5
$2.01M
$1.76M – $2.34M
NOI $140,665 @ 7.0% cap · market cap 10.86%
Second Best
Apartment 5plus
$1.87M
$1.64M – $2.18M
NOI $130,867 @ 7.0% cap · market cap 10.11%
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Town Village Center mixed-use property with a fully equipped restaurant space plus retail and two apartments.
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 on a 1.3‑acre lot; 4,000± SF turnkey restaurant space fully equipped; Outdoor patio with a gas fire pit plus seating for over 130 guests
