Day Care Center with Outdoor
For Sale
$565,000
518 U.S 1, Kittery, ME 03904
Commercial Sale, Kittery, ME
Property Size3,054 SF
Price / SF$185
Days on Market157
Property Features for 518 U.S 1
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
MU
Lot features
Near Turnpike/ Interstate, Business District, Near Shopping, Retail Strip
Standard status
Active
Size
3,054 SF
Taxes and HOA fees
HOA Fee
$1,018 Monthly
Listing Agency:
Keller Williams Coastal and Lakes & Mountains Realty · Keller Williams Realty
(207) 475-0999
Listed By:
Sean Cody
(207) 370-9509
Added: Apr 8
Changed: Aug 19
Last Checked: Sep 11 at 1:06AM
MLS# 1656898
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 3,054-square-foot commercial condominium is currently operating as a daycare and includes an outdoor yard configured as a playground. The interior layout can accommodate office, retail, or service-based uses, providing flexibility for an owner-user or investor.
Located at 518 U.S. 1 in Kittery, the property offers direct access to a prominent commercial corridor and is minutes from I-95, downtown Portsmouth, the Kittery Outlets, and area beaches. MU zoning and the existing outdoor area add practical relevance for childcare and other businesses that benefit from exterior space.
Located at 518 U.S. 1 in Kittery, the property offers direct access to a prominent commercial corridor and is minutes from I-95, downtown Portsmouth, the Kittery Outlets, and area beaches. MU zoning and the existing outdoor area add practical relevance for childcare and other businesses that benefit from exterior space.
Key Highlights
- 3,054‑square‑foot commercial condominium
- Currently operating as a daycare
- Outdoor yard area configured as a playground
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
$50,025
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
8.85%
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%
$1,000,500
$1.0M
Cap Rate 7%
$714,643
$714.6K
Cap Rate 9%
$555,833
$555.8K
Market Conditions
NOI Build-Up for 3,054 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
$76.2K $24.96/SF
− Vacancy
−$9.5K −$3.12/SF
EGI
$66.7K $21.84/SF
− OpEx
−$16.7K −$5.46/SF
NOI
$50.0K $16.38/SF
Area
York County, ME
Vacancy
12.50%
Lease Rate
$24.96 /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%
$1,000,500
Cap Rate 7%
$714,643
Cap Rate 9%
$555,833
Alternative Uses
Best Use
Office B
$714.6K
$625.3K – $833.8K
NOI $50,025 @ 7.0% cap · market cap 8.85%
Second Best
Retail
$529.8K
$463.6K – $618.1K
NOI $37,087 @ 7.0% cap · market cap 6.56%
Theoretical Best
Office A
$968.1K
$847.1K – $1.13M
NOI $67,767 @ 7.0% cap · market cap 11.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
259
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 03904, ME
8,148
Population
4,375
Households
1.9
Avg Household Size
42
Median Age
40%
College-Educated
96%
High-School Grad
10.9 sq mi
ZIP Area
748
Density / Sq Mi
$74,551
Median Household Income
$50,752
Median Earnings
$1,458
Median Rent
$415,700
Median Home Value
Market
Vacancy Rate% for Office 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?
Day care center - Commercial condominium with a flexible interior layout, MU zoning, and an enclosed outdoor area currently configured as a playground.
Where is this day care center located?
The property is located at 518 U.S 1 Kittery, ME.
What is the asking price?
The asking price for this property is $565,000.
What are key features of this property?
This property features: 3,054‑square‑foot commercial condominium; Currently operating as a daycare; Outdoor yard area configured as a playground
