Restaurant Opportunity in Smithfield,
For Sale
$859,000
332 Farnum, Smithfield, RI 02917
Turn-key restaurant space with high capacity and outdoor dining.
Property Size5,880 SF
Price / SF$146.09
Days on Market173
Property Features for 332 Farnum
General Information
Standard status
Active
Size
5,880 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$15,111
Amenities
Central air
Central Air Cooling
Circuit Breakers
Forced Air Heating
Gas Heating
Building Details
Year Built
1958
Listing Agency:
COMPASS
(401) 274-1644
Listed By:
THE BLACKSTONE TEAM · License #1999023818
Source:
Corcoran
Added: Feb 20
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 COMPASS
Investment Insights
Based on property information with market context.
Located at 332 Farnum Pike in Smithfield, RI, this commercial space offers an opportunity for a restaurant venture. The property features 5,880+ sq. ft. of space with a 200-person capacity. Situated in a dining district with steady traffic, the property is nearly turn-key. It includes a well-equipped kitchen, ample storage areas, and a basement prep area. On-site offices are available for management. The exterior features a large parking lot and an outdoor dining area. The location is near Fidelity and Bryant. This space is suited for various dining concepts, with the potential to become a local favorite.
Key Highlights
- Prime location in a high‑traffic, sought‑after dining district.
- Large 5,880+ sq. ft. space with a 200‑person capacity.
- Nearly turn‑key condition with a spacious, well‑equipped kitchen.
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
$71,220
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
8.29%
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%
$1,424,400
$1.4M
Cap Rate 7%
$1,017,429
$1.0M
Cap Rate 9%
$791,333
$791.3K
Market Conditions
NOI Build-Up for 5,880 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
$105.8K $18.00/SF
− Vacancy
−$10.9K −$1.85/SF
EGI
$95.0K $16.15/SF
− OpEx
−$23.7K −$4.04/SF
NOI
$71.2K $12.11/SF
Area
Providence County, RI
Vacancy
10.28%
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%
$1,424,400
Cap Rate 7%
$1,017,429
Cap Rate 9%
$791,333
Alternative Uses
Best Use
Specialty Retail
$1.02M
$890.3K – $1.19M
NOI $71,220 @ 7.0% cap · market cap 8.29%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.40M
$1.22M – $1.63M
NOI $97,905 @ 7.0% cap · market cap 11.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
98
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 02917, RI
14,738
Population
5,119
Households
2.9
Avg Household Size
38
Median Age
38%
College-Educated
92%
High-School Grad
21.4 sq mi
ZIP Area
689
Density / Sq Mi
$106,772
Median Household Income
$44,229
Median Earnings
$988
Median Rent
$416,100
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?
Restaurant - Turn-key restaurant space with high capacity and outdoor dining.
Where is this restaurant located?
The property is located at 332 Farnum Smithfield, RI.
What is the asking price?
The asking price for this property is $859,000.
What are key features of this property?
This property features: Prime location in a high‑traffic, sought‑after dining district.; Large 5,880+ sq. ft. space with a 200‑person capacity.; Nearly turn‑key condition with a spacious, well‑equipped kitchen.
