87-89 South Main Street · Waterbury · For Sale

Description:

The Warren House and Carriage House at 87–89 South Main Street present a distinctive investment opportunity in the heart of Waterbury, Vermont. Situated on approximately 0.71 acres, the property consists of two historic commercial buildings totaling approximately 7,300 square feet and is currently occupied by a diversified mix of professional, wellness, and nonprofit tenants. The property combines attractive historic architecture with a highly visible South Main Street location, convenient on-site parking, and easy access to downtown Waterbury and Interstate 89. Existing tenancy provides immediate income, while future lease rollover offers an opportunity to transition the property toward more standardized market-rate and NNN lease structures. With Waterbury’s strong business community and central location between Burlington, Montpelier, Stowe, and the Mad River Valley, this offering provides investors with a unique combination of character, established cash flow, and longer-term value-add potential.

WATERBURY, VERMONT

Waterbury is one of Central Vermont’s most strategically located and active commercial communities, benefiting from a combination of a strong local economy, year-round tourism, and significant regional traffic. The town has an estimated 2025 population of approximately 5,434 residents, but its effective trade area extends well beyond its municipal boundaries. Waterbury has a relatively affluent and highly educated population, with a median household income of approximately $103,900, per-capita income of approximately $64,800, and more than 54% of adults age 25 and older holding a bachelor’s degree or higher. Waterbury recorded approximately $122 million in retail sales and more than $33 million in accommodation and food-service sales in 2022, illustrating the substantial commercial activity generated in a community of its size.

A major driver of Waterbury’s commercial activity is its location at the convergence of Interstate 89, U.S. Route 2 and Vermont Route 100. I-89 Exit 10 provides direct access to downtown Waterbury and serves as one of the principal gateways to Vermont’s major resort and recreation destinations. VTrans describes the Route 100 corridor north from Waterbury toward Stowe as heavily traveled and particularly affected by seasonal tourism and special-event traffic. Recent VTrans traffic data show that sections of Main Street through Waterbury carry approximately 8,000 to more than 11,000 vehicles per day, while the Route 100 corridor has historically carried even greater volumes north of the interstate.

Waterbury occupies a unique position at the center of several of Vermont’s strongest tourism markets. Stowe Village is approximately 10 miles north via Route 100, making Waterbury an important gateway for visitors traveling to Stowe Mountain Resort and the broader Stowe tourism market. To the south, Route 100 leads directly into the Mad River Valley, including Waitsfield and Warren, with Sugarbush Resort approximately 21 miles from Waterbury. Mad River Glen, Bolton Valley and numerous other recreation destinations are also within easy driving distance. Sugarbush specifically directs visitors traveling south from Burlington and points north to use I-89 Exit 10 in Waterbury and Route 100 South, reinforcing Waterbury’s position as a regional crossroads for ski traffic.

That traffic is not limited to the winter ski season. Waterbury benefits from four-season tourism associated with mountain biking, hiking, paddling, fall foliage, restaurants, breweries and Vermont’s well-established food and beverage industry. The Waterbury Reservoir and surrounding state parks draw summer visitors, while the Perry Hill trail network has become a prominent mountain-bike destination. Waterbury is also home to nationally recognized destinations including the Ben & Jerry’s Factory, the company’s only factory open to the public, as well as Cold Hollow Cider Mill and a strong concentration of restaurants, breweries and specialty retailers. Ben & Jerry’s reports that its Waterbury factory produces up to approximately 350,000 pints per day and has welcomed millions of tour guests since factory tours began in 1986.

The result is a commercial market that benefits from several overlapping sources of demand: a strong local population, commuters and regional employees, interstate travelers, visitors bound for Stowe and the Mad River Valley, and Waterbury’s own substantial year-round tourism economy. For properties in and around downtown, this combination provides unusually strong visibility and accessibility for a Vermont community of Waterbury’s size and supports continued demand for office, retail, service and investment real estate.

Property Highlights

• Two-building commercial investment comprising the historic Warren House and Carriage House
• Approximately 7,300± SF of rentable space on 0.71± acres
• Prominent South Main Street location in downtown Waterbury
• Established multi-tenant occupancy with professional, wellness and nonprofit users
• Current stated base rent of approximately $128,600 annually, including the proposed Room 7 tenancy
• Opportunity to increase NOI through standardized NNN expense recoveries as leases renew or roll
• Attractive historic architecture with substantial character and strong street presence
• On-site parking serving both buildings
• Flexible configuration with multiple suites and diversified income streams
• Convenient access to I-89, Route 100 and Route 2
• Strategically positioned between Burlington, Montpelier, Stowe and the Mad River Valley
• Benefits from significant year-round traffic generated by Stowe, Sugarbush, Mad River Glen and Central Vermont tourism
• Strong potential for both investment ownership and longer-term value creation
• Offered as a single investment property at $1,250,000

ZONING – DOWNTOWN (DWN)

The property is located within Waterbury’s Downtown (DWN) Zoning District, which is intended to encourage a vibrant mix of retail, service, office, residential, lodging, civic and other compatible uses within the historic downtown. Permitted uses include professional and business offices, personal services, retail, restaurants, lodging, multi-family housing, childcare, clinics, educational and community uses, along with a variety of arts and recreational uses. Many commercial uses of up to 4,000 square feet are permitted, with larger-scale office, retail, restaurant and personal-service uses generally available through conditional-use review.