Waterfront Mixed-Use
For Sale
$3,100,000
Pending
73 Rocky Neck Ave Unit 1 & 2, Gloucester, MA 01930
Restaurant operations occupy the lower level, with a two-bedroom residence above and deep-water docking for diners.
Property Size4,845 SF
Days on Market342
Property Features for 73 Rocky Neck Ave Unit 1 & 2
General Information
Standard status
Pending
Size
4,845 SF
Property subtype
Commercial
Building Details
Year Built
2010
Listing Agency:
Engel & Volkers By the Sea
Listed By:
Barbara Dugan
(978) 865-1168
Source:
Findyournewenglandhome
Added: Oct 7, 2025
Changed: Sep 10
Last Checked: Sep 13 at 11:28AM
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 mixed-use waterfront property combines a restaurant with a two-bedroom residence on the upper level. The building was rebuilt in 2010 and measures 4,845 square feet. Restaurant furnishings, equipment, and table settings are included, supporting continued operation from an already fitted-out space.
Five deep-water boat slips extend the property’s use onto Smith Cove, allowing restaurant patrons to arrive by water. The property is located at 73 Rocky Neck Ave, Unit 1 & 2, in Gloucester, within Rocky Neck, an established working art colony. The restaurant has served the area for more than 60 years, adding a long operating history to the residential and waterfront components.
Five deep-water boat slips extend the property’s use onto Smith Cove, allowing restaurant patrons to arrive by water. The property is located at 73 Rocky Neck Ave, Unit 1 & 2, in Gloucester, within Rocky Neck, an established working art colony. The restaurant has served the area for more than 60 years, adding a long operating history to the residential and waterfront components.
Key Highlights
- 4,845‑square‑foot mixed‑use property with restaurant and 2‑BR waterfront residence
- Rebuilt in 2010
- Five deep‑water boat slips on Smith Cove
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
$98,111
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
3.16%
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%
$1,962,220
$2.0M
Cap Rate 7%
$1,401,586
$1.4M
Cap Rate 9%
$1,090,122
$1.1M
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
$174.4K $36.00/SF
− Vacancy
−$17.4K −$3.60/SF
EGI
$157.0K $32.40/SF
− OpEx
−$58.9K −$12.15/SF
NOI
$98.1K $20.25/SF
Area
Essex County, MA
Vacancy
10.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,962,220
Cap Rate 7%
$1,401,586
Cap Rate 9%
$1,090,122
Alternative Uses
Best Use
Mixed Use
$1.40M
$1.23M – $1.64M
NOI $98,111 @ 7.0% cap · market cap 3.16%
Second Best
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,556 @ 7.0% cap · market cap 2.89%
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
945
Businesses Nearby
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Restaurant operations occupy the lower level, with a two-bedroom residence above and deep-water docking for diners.
Where is this mixed-use property located?
The property is located at 73 Rocky Neck Ave Unit 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: 4,845‑square‑foot mixed‑use property with restaurant and 2‑BR waterfront residence; Rebuilt in 2010; Five deep‑water boat slips on Smith Cove
