Restaurant and Medical Office
For Sale
$895,900
923 Main, West Warwick, RI 02893
Two investment properties: restaurant/ice cream parlor and medical office.
Property Size4,360 SF
Lot Size0.31 Acres
Price / SF$205.48
Days on Market134
Property Features for 923 Main
General Information
Standard status
Active
Size
4,360 SF
Lot size
0.31 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$15,498
Amenities
Central air
Baseboard Heating
Central Air Cooling
Forced Air Heating
Hot Water Heating
Building Details
Year Built
1978
Listing Agency:
RE/MAX REAL ESTATE CENTER
(401) 823-7600
Listed By:
DAVID TATANGELO · License #S29833
Source:
Corcoran
Added: Mar 28
Changed: Aug 8
Last Checked: Aug 8 at 5:12AM
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 RE/MAX REAL ESTATE CENTER
Investment Insights
Based on property information with market context.
This offering presents an opportunity to acquire two investment properties. The first building is configured as a seasonal ice cream parlor and restaurant, featuring a walk-up window, a commercial kitchen, and an updated dining room. The building benefits from a new roof and siding, along with ample parking. The second building, constructed of brick, spans 2328 square feet on one level and is currently leased to Bay State Physical Therapy. This medical office space includes a full basement that offers potential for expansion or storage. The property is located in a high-traffic area and is close to amenities. The total property size is 4360 square feet.
Key Highlights
- Two investment properties included: a restaurant/ice cream business and a leased medical office.
- Strong, long‑term lease in place with Bay State Physical Therapy** in the 2328 sqft brick building.
- Restaurant/ice cream parlor has a new roof and siding, updated dining room, commercial kitchen, and walk‑up window.
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
$76,440
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
8.53%
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%
$1,528,800
$1.5M
Cap Rate 7%
$1,092,000
$1.1M
Cap Rate 9%
$849,333
$849.3K
Market Conditions
NOI Build-Up for 4,360 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
$104.6K $24.00/SF
− Vacancy
−$2.7K −$0.62/SF
EGI
$101.9K $23.38/SF
− OpEx
−$25.5K −$5.84/SF
NOI
$76.4K $17.53/SF
Area
Kent County, RI
Vacancy
2.60%
Lease Rate
$24.00 /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%
$1,528,800
Cap Rate 7%
$1,092,000
Cap Rate 9%
$849,333
Alternative Uses
Best Use
Specialty Retail
$1.09M
$955.5K – $1.27M
NOI $76,440 @ 7.0% cap · market cap 8.53%
Second Best
Healthcare Medical
$933.4K
$816.7K – $1.09M
NOI $65,335 @ 7.0% cap · market cap 7.29%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
396
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 02893, RI
31,030
Population
15,103
Households
2.1
Avg Household Size
41
Median Age
25%
College-Educated
90%
High-School Grad
7.8 sq mi
ZIP Area
3,978
Density / Sq Mi
$73,903
Median Household Income
$49,087
Median Earnings
$1,249
Median Rent
$293,100
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.
Similar Off Market Nearby
- DE Vine Foods — 1143 Main St, West Warwick, RI 02893
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Frequently Asked Questions
What type of property is this?
Restaurant - Two investment properties: restaurant/ice cream parlor and medical office.
Where is this restaurant located?
The property is located at 923 Main West Warwick, RI.
What is the asking price?
The asking price for this property is $895,900.
What are key features of this property?
This property features: Two investment properties included: a restaurant/ice cream business and a leased medical office.; Strong, long‑term lease in place with Bay State Physical Therapy** in the 2328 sqft brick building.; Restaurant/ice cream parlor has a new roof and siding, updated dining room, commercial kitchen, and walk‑up window.
