Listing Agency: Pavia Real Estate Services Show Phone

Listed By: Kevin Valenti · License #3321260 Show Phone

Source: Moodyscre

Added: Jan 16, 2025 Changed: Aug 8 Last Checked: Sep 1 at 11:01PM

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Investment Insights

Based on property information with market context.

This offering presents the opportunity to purchase Munson’s Building Supplies, a longstanding lumber yard and hardware store located in Oneonta, New York. The property includes a 28,056-square-foot main building, six pole barns totaling approximately 8,704 square feet, and approximately 5,220 square feet of covered storage. Situated on approximately 4.27 acres directly off I-88 Exit 16, the sale encompasses the real estate, business, FF&E (furniture, fixtures, and equipment), and inventory.

Key Highlights

• Established lumber yard and hardware store business included in sale.
• Includes real estate, business, FF&E, and inventory.
• Large 28,056 SF main building with additional storage.**

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

$396,869

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

7.94%

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%

$7,937,380 $7.9M

Cap Rate 7%

$5,669,557 $5.7M

Cap Rate 9%

$4,409,656 $4.4M

Market Conditions

NOI Build-Up for 41,098 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

$591.8K $14.40/SF

− Vacancy

−$24.9K −$0.60/SF

EGI

$567.0K $13.80/SF

− OpEx

−$170.1K −$4.14/SF

NOI

$396.9K $9.66/SF

Area

Otsego County, NY

Vacancy

4.20%

Lease Rate

$14.40 /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%

$7,937,380

Cap Rate 7%

$5,669,557

Cap Rate 9%

$4,409,656

Alternative Uses

Best Use

Warehouse

$7.15M

$6.26M – $8.34M (±1% cap)

NOI $500,420 @ 7.0% cap · market cap 10.01%

Second Best

Retail

$5.67M

$4.96M – $6.61M (±1% cap)

NOI $396,869 @ 7.0% cap · market cap 7.94%

Theoretical Best

Office A

$11.33M

$9.91M – $13.22M (±1% cap)

NOI $793,027 @ 7.0% cap · market cap 15.86%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Storefront properties

Location Intelligence

Trade Area within ½ mile

21

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this storefront properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Storefront property - Established lumber yard and hardware store for sale in Oneonta.

Where is this storefront property located?

The property is located at 5662 NY-7 Milford Center, NY.

What is the asking price?

The asking price for this property is $4,999,999.

What are key features of this property?

This property features: Established lumber yard and hardware store business included in sale.; Includes real estate, business, FF&E, and inventory.; Large 28,056 SF main building with additional storage.**