12 Water St
Mystic, CT 06355 New London

Prime Multi-Level Restaurant / Retail Opportunity in the Heart of Downtown Mystic

Offered for lease is a highly visible, large-format commercial space located at 12 Water Street, within Factory Square, long recognized as the epicenter of downtown Mystic. Formerly home to Margarita’s Restaurant for over 30 years, this iconic location offers a rare opportunity to establish a flagship food, beverage, or retail concept in one of New England’s most sought-after waterfront destinations.

The approximately 8,500 square foot space is configured across three levels, designed for high-volume operations and destination appeal. The first floor includes a public entrance, service entrance, prep kitchen, and extensive back-of-house infrastructure, including two walk-in coolers, walk-in freezer, keg cooler, and dry storage. The public entrance leads directly to the second floor, which features the main dining room and primary kitchen area, while the third floor is dedicated to a dramatic full bar and service bar, anchored by a large hollow-square bar accommodating approximately 30 patrons. A second-floor rooftop patio provides additional outdoor seating for roughly 30 guests.

While the interior will require a full renovation, the existing layout, scale, and vertical separation lend themselves well to a wide range of foodservice, hospitality, or experiential concepts seeking to create a memorable, multi-level guest experience. The property was previously licensed for alcohol, and the zoning allows for broad commercial flexibility, including foodservice and retail uses, consistent with the Mystic Downtown District (MDD) zoning.

The location offers views of downtown Mystic with partial views of the Mystic River and benefits from exceptional pedestrian traffic driven by tourism and local activity. Mystic has emerged as a major U.S. tourist destination over the past several years, known for its vibrant dining scene, waterfront character, and nationally recognized culinary operators. Validated parking is available directly across the street at the Mystic Art Association lot, providing convenient access for patrons.

• Date available: Feb 2026
• Lease term: 5 - 10 Years
• Service type: Triple Net
• Space Type: New