Three-Story Mixed-Use
New
For Sale
$550,000
863 Broad Street, Central Falls, RI 02863
Commercial space occupies the ground level, with residential floors above and on-site parking.
Property Size1,264 SF
Price / SF$435.13
Days on Market7
Property Features for 863 Broad Street
General Information
Standard status
Active
Size
1,264 SF
Property subtype
General Commercial
Occupancy
100%
Taxes and HOA fees
Annual Taxes
$7,264
Amenities
6 Parking Spaces.
Building Details
Year Built
1900
Buildings
1
Stories
3
Tenancy
Multi
Listing Agency:
Lettieri & Associates-Realtors
(401) 523-5536
Listed By:
Lois Lettieri
(401) 523-5536
Source:
Xome
Added: Aug 16
Changed: Aug 22
Last Checked: Aug 22 at 3:36AM
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 Lettieri & Associates-Realtors
Investment Insights
Based on property information with market context.
This three-story mixed-use property combines a commercial ground floor with residential space on the second and third levels. The first floor includes access to a storage or shed area, while a fire alarm system serves all three floors. A gas boiler installed 6 years ago supplies the upper levels.
The building is located at 863 Broad Street in Central Falls, within a populated business district described as a gateway for retail activity. Six parking spaces are available on site. The property was built in 1900 and is currently occupied throughout under month-to-month arrangements, providing flexibility for continued occupancy or future owner use subject to applicable requirements.
The building is located at 863 Broad Street in Central Falls, within a populated business district described as a gateway for retail activity. Six parking spaces are available on site. The property was built in 1900 and is currently occupied throughout under month-to-month arrangements, providing flexibility for continued occupancy or future owner use subject to applicable requirements.
Key Highlights
- Ground‑floor commercial space with residential areas on the second and third floors
- Fire alarm system serving all 3 floors
- Gas boiler for the second and third floors installed 6 years ago
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
$16,703
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
3.04%
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%
$334,060
$334.1K
Cap Rate 7%
$238,614
$238.6K
Cap Rate 9%
$185,589
$185.6K
Market Conditions
NOI Build-Up for 1,264 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
$32.3K $25.56/SF
− Vacancy
−$1.9K −$1.53/SF
EGI
$30.4K $24.03/SF
− OpEx
−$13.7K −$10.81/SF
NOI
$16.7K $13.21/SF
Area
Providence County, RI
Vacancy
6.00%
Lease Rate
$25.56 /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%
$334,060
Cap Rate 7%
$238,614
Cap Rate 9%
$185,589
Alternative Uses
Best Use
Apartment 5plus
$238.6K
$208.8K – $278.4K
NOI $16,703 @ 7.0% cap · market cap 3.04%
Second Best
Specialty Retail
$218.7K
$191.4K – $255.2K
NOI $15,310 @ 7.0% cap · market cap 2.78%
Theoretical Best
Multifamily LT 5
$300.7K
$263.1K – $350.8K
NOI $21,046 @ 7.0% cap · market cap 3.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,021
Businesses Nearby
Explore this area
Business Placement
Demographics for 02863, RI
22,596
Population
8,341
Households
2.7
Avg Household Size
32
Median Age
12%
College-Educated
60%
High-School Grad
1.2 sq mi
ZIP Area
18,830
Density / Sq Mi
$45,921
Median Household Income
$30,050
Median Earnings
$1,118
Median Rent
$300,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial space occupies the ground level, with residential floors above and on-site parking.
Where is this mixed-use property located?
The property is located at 863 Broad Street Central Falls, RI.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Ground‑floor commercial space with residential areas on the second and third floors; Fire alarm system serving all 3 floors; Gas boiler for the second and third floors installed 6 years ago
