Building Details

Year Built 1900

Year Renovated 2019

Buildings 2

Stories 3

Units 3

Tenancy Multi

Listing Agency: Berkshire Hathaway HomeServices Realty Professionals

Listed By: Elizabeth Salois · License #MA 9559467

Source: Crexi

Added: Mar 18, 2024 Changed: Aug 8 Last Checked: Aug 8 at 2:43PM

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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 Berkshire Hathaway HomeServices Realty Professionals

Investment Insights

Based on property information with market context.

This mixed-use property, situated in a bustling area on RT 202 in Granby, MA, presents a turn-key business and real estate opportunity. The location benefits from a mix of residential homes and businesses, with convenient access to highways and colleges. Currently operating as a breakfast and lunch destination, the property offers potential for expanding the existing business. The second floor provides options for living or rental income, complemented by an additional detached short-term rental or studio apartment. The restaurant features cozy seating both inside, near a fireplace, and outside on a fenced-in patio. The property's location and layout support various business expansions, such as offering dinner service, utilizing the existing ice cream window, providing baked goods, or expanding the current pick-up catering business to include off-site catering. The property size is 4315 square feet.

Key Highlights

• Established turn‑key business with real estate included.
• Prime location on RT 202 in a bustling area near residential homes, businesses, highways, and colleges.
• Mixed‑use building with potential for expansion, including a second‑floor apartment (live‑in or rental) and a detached short‑term rental/studio apartment.

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

$41,359

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

4.73%

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%

$827,180 $827.2K

Cap Rate 7%

$590,843 $590.8K

Cap Rate 9%

$459,544 $459.5K

Market Conditions

NOI Build-Up for 4,315 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

$73.5K $17.04/SF

− Vacancy

−$7.4K −$1.70/SF

EGI

$66.2K $15.34/SF

− OpEx

−$24.8K −$5.75/SF

NOI

$41.4K $9.59/SF

Area

Hampshire County, MA

Vacancy

10.00%

Lease Rate

$17.04 /SF/Yr

Expense Ratio

37.50%

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%

$827,180

Cap Rate 7%

$590,843

Cap Rate 9%

$459,544

Alternative Uses

Best Use

Specialty Retail

$1.36M

$1.19M – $1.58M (±1% cap)

NOI $94,952 @ 7.0% cap · market cap 10.85%

Second Best

Mixed Use

$590.8K

$517.0K – $689.3K (±1% cap)

NOI $41,359 @ 7.0% cap · market cap 4.73%

Theoretical Best

Office A

$2.63M

$2.30M – $3.07M (±1% cap)

NOI $183,943 @ 7.0% cap · market cap 21.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Willow Wind Labradors Pet Store Bitter Day Herbals (Bike/Boat/Book/etc) Store Something Special Café ... Take-out & Catering

Suggested Use

Top Pick Real Estate Agency Dental Office Big Box & Wholesale Store Auto Parts Store Law Firm Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

121

Businesses Nearby

7k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

7,101 visits/mo 0.0 miles

Demographics for 01033, MA

6,092

Population

2,768

Households

2.2

Avg Household Size

47

Median Age

37%

College-Educated

94%

High-School Grad

27.8 sq mi

ZIP Area

219

Density / Sq Mi

$110,188

Median Household Income

$65,625

Median Earnings

$319,600

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this breakfast & diners located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Breakfast & diner - Established restaurant with living space and rental income potential.

Where is this breakfast & diner located?

The property is located at 181 West State Street Granby Granby, MA.

What is the asking price?

The asking price for this property is $875,000.

What are key features of this property?

This property features: Established turn‑key business with real estate included.; Prime location on RT 202 in a bustling area near residential homes, businesses, highways, and colleges.; Mixed‑use building with potential for expansion, including a second‑floor apartment (live‑in or rental) and a detached short‑term rental/studio apartment.