Historic Police Station
For Sale
Contact for pricing
Pending
3 Merrimack St, Concord, NH 03303
Former police station building currently used as a library, with parking included on an adjacent Sanders Street lot.
Property Size2,160 SF
Days on Market368
Property Features for 3 Merrimack St
General Information
Standard status
Pending
Size
2,160 SF
Property subtype
OFFICE
Building Details
Construction
Romanesque
Listing Agency:
NAI Norwood Group
(603) 496-4516
Listed By:
Judy Niles-Simmons · License #053237
(603) 496-4516
Source:
Moodyscre
Added: Aug 8, 2025
Changed: Jul 25
Last Checked: Jul 25 at 8:32PM
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 NAI Norwood Group
Investment Insights
Based on property information with market context.
This historic office building is the former Police Station and features Romanesque-style characteristics, including an arched entrance and adjacent window that reveals interior stair railing. Most recently it was occupied by the Penacook Library, and the basement retains two cells.
Parking is provided with the sale through the Sanders Street lot. City Council approval is required for the sale.
The property is offered for sale as-is and includes the Sanders Street lot for parking use.
Parking is provided with the sale through the Sanders Street lot. City Council approval is required for the sale.
The property is offered for sale as-is and includes the Sanders Street lot for parking use.
Key Highlights
- Former police station building with Romanesque‑style features including an arched entrance and adjacent window
- Currently used as the Penacook Library
- Basement still houses two cells
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
$30,198
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
9.14%
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%
$603,960
$604.0K
Cap Rate 7%
$431,400
$431.4K
Cap Rate 9%
$335,533
$335.5K
Market Conditions
NOI Build-Up for 2,160 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
$46.7K $21.60/SF
− Vacancy
−$6.4K −$2.96/SF
EGI
$40.3K $18.64/SF
− OpEx
−$10.1K −$4.66/SF
NOI
$30.2K $13.98/SF
Area
Merrimack County, NH
Vacancy
13.70%
Lease Rate
$21.60 /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%
$603,960
Cap Rate 7%
$431,400
Cap Rate 9%
$335,533
Alternative Uses
Best Use
Office B
$431.4K
$377.5K – $503.3K
NOI $30,198 @ 7.0% cap · market cap 9.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$562.4K
$492.1K – $656.2K
NOI $39,369 @ 7.0% cap · market cap 11.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
221
Businesses Nearby
Explore this area
Business Placement
Demographics for 03303, NH
16,516
Population
6,907
Households
2.4
Avg Household Size
43
Median Age
31%
College-Educated
94%
High-School Grad
67.8 sq mi
ZIP Area
244
Density / Sq Mi
$79,688
Median Household Income
$49,648
Median Earnings
$1,363
Median Rent
$274,100
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 - Former police station building currently used as a library, with parking included on an adjacent Sanders Street lot.
Where is this office building located?
The property is located at 3 Merrimack St Concord, NH.
What is the asking price?
The asking price for this property is $330,300.
What are key features of this property?
This property features: Former police station building with Romanesque‑style features including an arched entrance and adjacent window; Currently used as the Penacook Library; Basement still houses two cells
