Mixed-Use Property with Rooftop
For Sale
$2,195,000
424 Thames Street, Newport, RI 02840
Three-unit property combining street-level commercial space with a short-term rental residence and off-street parking.
Property Size4,306 SF
Price / SF$509.75
Days on Market8
Property Features for 424 Thames Street
General Information
Standard status
Active
Size
4,306 SF
Total Parking Spaces
1
Property subtype
MultiFamily
Zoning
LB
Amenities
rooftop deck
Building Details
Year Built
1835
Tenancy
Multi
Listing Agency:
Our Real Estate
Listed By:
Lauren Mailloux · License #REC.0018779
(401) 835-7778
Source:
Lockandkeyre
Added: Sep 19
Changed: Sep 24
Last Checked: Sep 24 at 9:53AM
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 Our Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property contains approximately 2,672 square feet across three units: two street-level commercial spaces and a three-bedroom, three-bath residential unit operated as a short-term rental. The commercial spaces are occupied by retail and service tenants, creating a combination of commercial and residential uses within one building. Recent work includes fresh exterior paint and new decking, while the rooftop deck provides views toward Newport Harbor and the Pell Bridge.
Located at 424 Thames Street in Newport’s Lower Thames district, the property is positioned near Newport Harbor, restaurants, shopping, nightlife, and downtown attractions. Limited Business (LB) zoning supports its mixed-use character, and the property includes one off-street parking space. Built in 1835, the building offers a historic structure with active commercial frontage and a residential hospitality component.
Located at 424 Thames Street in Newport’s Lower Thames district, the property is positioned near Newport Harbor, restaurants, shopping, nightlife, and downtown attractions. Limited Business (LB) zoning supports its mixed-use character, and the property includes one off-street parking space. Built in 1835, the building offers a historic structure with active commercial frontage and a residential hospitality component.
Key Highlights
- Approximately 2,672 square feet across three units
- Two street‑level commercial spaces occupied by retail and service tenants
- Three‑bedroom, three‑bath residential unit operated as a short‑term rental
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
$63,961
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
2.91%
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%
$1,279,220
$1.3M
Cap Rate 7%
$913,729
$913.7K
Cap Rate 9%
$710,678
$710.7K
Market Conditions
NOI Build-Up for 4,306 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
$125.0K $29.04/SF
− Vacancy
−$8.8K −$2.03/SF
EGI
$116.3K $27.01/SF
− OpEx
−$52.3K −$12.15/SF
NOI
$64.0K $14.85/SF
Area
Newport County, RI
Vacancy
7.00%
Lease Rate
$29.04 /SF/Yr
Expense Ratio
45.00%
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%
$1,279,220
Cap Rate 7%
$913,729
Cap Rate 9%
$710,678
Alternative Uses
Best Use
Apartment 5plus
$913.7K
$799.5K – $1.07M
NOI $63,961 @ 7.0% cap · market cap 2.91%
Second Best
Retail
$694.1K
$607.3K – $809.8K
NOI $48,586 @ 7.0% cap · market cap 2.21%
Theoretical Best
Multifamily LT 5
$1.03M
$899.0K – $1.20M
NOI $71,920 @ 7.0% cap · market cap 3.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,837
Businesses Nearby
Explore this area
Business Placement
Demographics for 02840, RI
23,902
Population
13,515
Households
1.8
Avg Household Size
40
Median Age
55%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,274
Density / Sq Mi
$83,515
Median Household Income
$41,228
Median Earnings
$1,610
Median Rent
$669,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three-unit property combining street-level commercial space with a short-term rental residence and off-street parking.
Where is this mixed-use property located?
The property is located at 424 Thames Street Newport, RI.
What is the asking price?
The asking price for this property is $2,195,000.
What are key features of this property?
This property features: Approximately 2,672 square feet across three units; Two street‑level commercial spaces occupied by retail and service tenants; Three‑bedroom, three‑bath residential unit operated as a short‑term rental
