Building Details

Year built 1773

Number of units 17

Flooring type Vinyl, Wood, Tile, Carpet

Building materials Wood Frame, Clapboard, Wood Siding

Roof type Shingle, Fiberglass

Listing Agency: Keller Williams Coastal and Lakes & Mountains Realty · Keller Williams Realty f***@kw.com Show Phone

Listed By: Pamela Adami Show Phone

Added: Jun 11 Changed: Aug 5 Last Checked: Aug 11 at 7:06PM

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MLS# 1654064

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.

The Isaac Merrill House is a 7,800-square-foot wood-frame building on 0.61 acres, originally established in 1773. The property is currently configured for mid-term rentals and previously operated as a bed and breakfast. Building materials include clapboard and wood siding, with vinyl, wood, tile, and carpet flooring. Heating systems include electric, oil, steam, natural gas, baseboard, hot water, and forced air. The property also includes a basement, shingle and fiberglass roofing, public water, and public sewer.

Located at 720 Kearsarge Road in Conway, the property is minutes from Cranmore Mountain, Story Land, Schouler Park, and North Conway Village. The RA-zoned asset offers an existing extended-stay configuration, with the source information also identifying the possibility of reestablishing a bed-and-breakfast operation.

Key Highlights

• 7,800‑square‑foot building on 0.61 acres
• Originally established in 1773
• Currently configured for mid‑term rentals

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

$97,812

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

8.15%

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%

$1,956,240 $2.0M

Cap Rate 7%

$1,397,314 $1.4M

Cap Rate 9%

$1,086,800 $1.1M

Market Conditions

NOI Build-Up for 7,800 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

$234.0K $30.00/SF

− Vacancy

−$28.1K −$3.60/SF

EGI

$205.9K $26.40/SF

− OpEx

−$108.1K −$13.86/SF

NOI

$97.8K $12.54/SF

Area

Carroll County, NH

Vacancy

12.00%

Lease Rate

$30.00 /SF/Yr

Expense Ratio

52.50%

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%

$1,956,240

Cap Rate 7%

$1,397,314

Cap Rate 9%

$1,086,800

Alternative Uses

Best Use

Hotel Hospitality

$1.40M

$1.22M – $1.63M (±1% cap)

NOI $97,812 @ 7.0% cap · market cap 8.15%

Second Best

Apartment 5plus

$1.15M

$1.00M – $1.34M (±1% cap)

NOI $80,270 @ 7.0% cap · market cap 6.69%

Theoretical Best

Office A

$1.95M

$1.70M – $2.27M (±1% cap)

NOI $136,334 @ 7.0% cap · market cap 11.36%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Bed & breakfasts

Suggested Use

Top Pick Auto Repair Shop Bed & Breakfast Hotel & Motel

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

3

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

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Frequently Asked Questions

What type of property is this?

Apartment building - 1773 wood-frame property configured for mid-term rentals with public water and sewer.

Where is this apartment building located?

The property is located at 720 Kearsarge Road North Conway, ME.

What is the asking price?

The asking price for this property is $1,200,000.

What are key features of this property?

This property features: 7,800‑square‑foot building on 0.61 acres; Originally established in 1773; Currently configured for mid‑term rentals