Restaurant Opportunity Near Green
For Sale
Contact for pricing
1278 Post Road, Warwick, RI 02888
Family-run restaurant with liquor license, parking, and storage.
Property Size4,000 SF
Price / SF$181.25
Days on Market674
Property Features for 1278 Post Road
General Information
Standard status
Active
Size
4,000 SF
Total Parking Spaces
28
Property subtype
Mixed Use, Retail, Office, Industrial
Building Details
Year Built
1955
Buildings
1
Stories
2
Listing Agency:
Circle 100 Real Estate
(401) 227-7501
Listed By:
Shuman Hsia
Source:
Crexi
Added: Oct 5, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:22AM
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 Circle 100 Real Estate
Investment Insights
Based on property information with market context.
This long-standing family-run Chinese restaurant, established in 1974 and located in the Norwood area near Green Airport, is available for purchase. The property features 2,000 square feet of open space on the first floor, designed with an easy-flow layout. A full 2,000-square-foot basement provides substantial storage capacity. The restaurant has a seating capacity of 70 and includes 28 parking spaces on a double lot. Situated in a central location within the state, the property offers convenient access to Interstate 95 and Interstate 295, and is located 5 minutes from Green International Airport. The property is suitable for conventional restaurants, retail space, office space, and other commercial real estate ventures. Recent improvements include a new roof and pavement in 2023.
Key Highlights
- Established Chinese restaurant with liquor license operating since 1974.
- 2000 sq ft open space on the first floor with easy flow layout.
- Convenient location with easy access to I‑95 and I‑295, and 5 minutes to Green International Airport.
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
$51,708
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
7.13%
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%
$1,034,160
$1.0M
Cap Rate 7%
$738,686
$738.7K
Cap Rate 9%
$574,533
$574.5K
Market Conditions
NOI Build-Up for 4,000 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
$75.8K $18.96/SF
− Vacancy
−$2.0K −$0.49/SF
EGI
$73.9K $18.47/SF
− OpEx
−$22.2K −$5.54/SF
NOI
$51.7K $12.93/SF
Area
Kent County, RI
Vacancy
2.60%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
30.00%
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%
$1,034,160
Cap Rate 7%
$738,686
Cap Rate 9%
$574,533
Alternative Uses
Best Use
Specialty Retail
$1.00M
$876.6K – $1.17M
NOI $70,128 @ 7.0% cap · market cap 9.67%
Second Best
Retail
$738.7K
$646.4K – $861.8K
NOI $51,708 @ 7.0% cap · market cap 7.13%
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
770
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 02888, RI
19,578
Population
9,117
Households
2.1
Avg Household Size
46
Median Age
32%
College-Educated
96%
High-School Grad
5.9 sq mi
ZIP Area
3,318
Density / Sq Mi
$88,750
Median Household Income
$55,561
Median Earnings
$1,218
Median Rent
$318,100
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Family-run restaurant with liquor license, parking, and storage.
Where is this conventional restaurant located?
The property is located at 1278 Post Road Warwick, RI.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Established Chinese restaurant with liquor license operating since 1974.; 2000 sq ft open space on the first floor with easy flow layout.; Convenient location with easy access to I‑95 and I‑295, and 5 minutes to Green International Airport.
