Restaurant Property For
For Sale
$2,200,000
Pending
322 W Montauk, Hampton Bays, NY 11946
Restaurant property for sale, also offered for lease.
Property Size4,194 SF
Lot Size0.97 Acres
Days on Market265
Property Features for 322 W Montauk
General Information
Standard status
Pending
Size
4,194 SF
Lot size
0.97 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$18,804
Building Details
Building Size
4,194 SF
Year Built
1967
Listing Agency:
(631) 996-4345
Listed By:
Ralph J. DeRosa
(631) 996-4345
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 8
Last Checked: Aug 8 at 5:55AM
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 Ralph J. DeRosa
Investment Insights
Based on property information with market context.
The property and building are for sale for $2,200,000. Currently operating as a high-end steak house, the property is also offered for lease as a turn-key restaurant with key money of $500,000 and a monthly rent of $15,000 on a triple net lease.
Key Highlights
- Property and building for sale.
- Existing high‑end steak house business included in sale.
- Turn‑key restaurant opportunity.
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
$81,997
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
3.73%
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%
$1,639,940
$1.6M
Cap Rate 7%
$1,171,386
$1.2M
Cap Rate 9%
$911,078
$911.1K
Market Conditions
NOI Build-Up for 4,194 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
$125.8K $30.00/SF
− Vacancy
−$8.7K −$2.07/SF
EGI
$117.1K $27.93/SF
− OpEx
−$35.1K −$8.38/SF
NOI
$82.0K $19.55/SF
Area
Suffolk County, NY
Vacancy
6.90%
Lease Rate
$30.00 /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%
$1,639,940
Cap Rate 7%
$1,171,386
Cap Rate 9%
$911,078
Alternative Uses
Best Use
Retail
$1.17M
$1.02M – $1.37M
NOI $81,997 @ 7.0% cap · market cap 3.73%
Second Best
Specialty Retail
$1.09M
$953.2K – $1.27M
NOI $76,257 @ 7.0% cap · market cap 3.47%
Theoretical Best
Office A
$1.28M
$1.12M – $1.49M
NOI $89,438 @ 7.0% cap · market cap 4.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
64
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 11946, NY
15,535
Population
9,098
Households
1.7
Avg Household Size
42
Median Age
43%
College-Educated
87%
High-School Grad
13.5 sq mi
ZIP Area
1,151
Density / Sq Mi
$128,844
Median Household Income
$53,259
Median Earnings
$2,288
Median Rent
$691,300
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant property for sale, also offered for lease.
Where is this restaurant located?
The property is located at 322 W Montauk Hampton Bays, NY.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Property and building for sale.; Existing high‑end steak house business included in sale.; Turn‑key restaurant opportunity.
