Iconic Waterfront Restaurant and
For Sale
$3,100,000
Pending
73 Rocky Neck Ave. 1&2, Gloucester, MA 01930
Established restaurant with residence in historic Rocky Neck art colony.
Property Size4,845 SF
Days on Market122
Property Features for 73 Rocky Neck Ave. 1&2
General Information
Standard status
Pending
Size
4,845 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$24,318
Building Details
Building Size
4,845 SF
Year Built
2010
Listing Agency:
Engel & Volkers By the Sea
(978) 317-9240
Listed By:
Barbara Dugan
(978) 317-9240
Source:
Elliman
Added: Apr 24
Changed: Aug 21
Last Checked: Aug 22 at 7:20AM
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 Engel & Volkers By the Sea
Investment Insights
Based on property information with market context.
This property features an established restaurant and a two-bedroom waterfront residence. The restaurant, rebuilt in 2010, has been a local landmark for over 60 years in the heart of Rocky Neck, one of the oldest working art colonies in America. It offers a blend of historical charm and modern amenities. The fully furnished and stocked restaurant includes five deep-water boat slips, allowing diners to dock and dine on Smith Cove. This property presents an opportunity to live and work in a sought-after waterfront location, with potential for income generation. The location is considered very walkable with a walk score of 84, and has some transit options with a transit score of 45. It is somewhat bikeable, with a bike score of 48.
Key Highlights
- Iconic waterfront restaurant with established business (60+ years) and 2‑BR residence.
- Prime location in the heart of Rocky Neck art colony.
- Rebuilt in 2010 with modern amenities.
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
$89,556
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
2.89%
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%
$1,791,120
$1.8M
Cap Rate 7%
$1,279,371
$1.3M
Cap Rate 9%
$995,067
$995.1K
Market Conditions
NOI Build-Up for 4,845 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
$122.1K $25.20/SF
− Vacancy
−$2.7K −$0.55/SF
EGI
$119.4K $24.65/SF
− OpEx
−$29.9K −$6.16/SF
NOI
$89.6K $18.48/SF
Area
Essex County, MA
Vacancy
2.20%
Lease Rate
$25.20 /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%
$1,791,120
Cap Rate 7%
$1,279,371
Cap Rate 9%
$995,067
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,556 @ 7.0% cap · market cap 2.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.87M
$2.51M – $3.35M
NOI $200,776 @ 7.0% cap · market cap 6.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 01930, MA
29,729
Population
14,630
Households
2
Avg Household Size
50
Median Age
39%
College-Educated
94%
High-School Grad
26.2 sq mi
ZIP Area
1,135
Density / Sq Mi
$87,898
Median Household Income
$49,580
Median Earnings
$1,395
Median Rent
$587,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant with residence in historic Rocky Neck art colony.
Where is this conventional restaurant located?
The property is located at 73 Rocky Neck Ave. 1&2 Gloucester, MA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: Iconic waterfront restaurant with established business (60+ years) and 2‑BR residence.; Prime location in the heart of Rocky Neck art colony.; Rebuilt in 2010 with modern amenities.
