46 Statue Way 11 Unit Apartment Building Offered at $4,000,000 at a 6.05% Cap Rate Portsmouth, RI 02871

Statue Way is a rare 11-unit condominium rental portfolio in Portsmouth's desirable "Lehigh Hill" area — minutes from Newport, with convenient access to RI Routes 114 and 24, in one of coastal Rhode Island's most enduring rental markets. The offering is anchored by three sources of value creation: substantial embedded rent growth, further development potential, and disposition flexibility.
Rent upside is the most immediate advantage: current rents total $325,920 annually against an estimated market of $417,600 — a roughly 28% gap, representing approximately $91,680 in additional annual NOI as leases turn over. The largest improvements are in the portfolio's larger two-bedroom units, several of which are currently $900 to $1,900 per month below market, giving a new owner a clear, unit-by-unit plan to drive income as leases turn over. That upside alone moves the cap rate from approximately 6.05% today toward approximately 8.34% at market rents, and the gross rent multiplier from approximately 12.27x to 9.58x, at the current list price.
Development potential adds a second, largely untapped layer of value. The property sits on a large parcel zoned R-20 by the Town of Portsmouth, with potential for additional density beyond its current 11 units, subject to confirmation of total lot size and site engineering. More immediately actionable: Unit #46's existing detached garage is a strong candidate for conversion into an additional accessory dwelling unit (ADU) under Rhode Island's statewide ADU law, which requires municipalities to permit conversion of an existing detached structure into a dwelling unit without expanding its footprint. None of this upside is reflected in the property's current in-place income.
Disposition flexibility sets this offering apart from a typical multifamily sale. Because the property is legally structured as an 11-unit condominium — not a single fee-simple apartment building — a buyer isn't locked into one bulk exit strategy. Individual buildings or units can be sold off separately over time to owner-occupant or investor buyers at retail residential pricing and with access to conventional residential financing, a path that often prices above what a single bulk multifamily sale would achieve. A buyer can operate the portfolio as a stabilized rental asset indefinitely, execute a phased individual-unit sale strategy, or pursue some combination of both — the underlying condominium structure keeps every option open.
Built in 1986 and converted to condominium ownership in 2004, the well-maintained townhouse-style community spans 8 separate buildings across a mix of one- and two-bedroom layouts, most with private decks or outdoor space, in-unit laundry, and garage parking. The property is served by public water and a private septic system, and no flood insurance is required. A solar utility contract covers electric service for 7 of the 8 buildings, and tenants are individually responsible for their own water bills, keeping the owner's operating expense burden well below typical multifamily benchmarks.
Annual operating expenses of approximately $83,885 include insurance, landscaping and maintenance, property taxes, the solar utility contract, and a shared plowing expense allocated to this property. At the $4,000,000 offering price, the portfolio reflects a going-in net operating income of approximately $242,035 (a 6.05% cap rate), growing to approximately $333,715 (an 8.34% cap rate) as in-place rents are brought to market — a meaningful, quantifiable spread that rewards active lease management.
The property's proximity to Newport also supports a seasonal income strategy worth exploring. The greater Newport short-term rental market commands strong summer nightly rates with pronounced July–August seasonality, offering select larger units an additional, uncapped income lever alongside — or instead of — traditional annual leasing, subject to confirming per-building septic capacity and any condominium restrictions on minimum lease terms.
This is a rare opportunity to acquire a well-located, solar-equipped condominium rental portfolio in one of Rhode Island's most desirable coastal submarkets, just minutes from Newport's harbor, dining, and tourism economy — offering meaningful in-place cash flow, clear and quantifiable upside to market rents, further development potential, and flexible disposition options not typically available in a multifamily asset of this scale.