Building Details

Building Size 3,253 SF

Year Built 1850

Buildings 3

Listing Agency: NextHome Brixwood Show Phone

Listed By: Meredith J Lindsey · License #10401397184 Show Phone

Source: Highfallssir

Added: Jul 15 Changed: Aug 2 Last Checked: Aug 11 at 1:11PM

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Investment Insights

Based on property information with market context.

This multifamily property includes three residential units across two residential structures. The primary house contains a duplex with one four-bedroom, one-bath apartment featuring in-unit laundry and a separate one-bedroom, one-bath apartment. A detached three-bedroom apartment provides its own entrance and two attached garage spaces. All three units are tenant occupied.

The property spans 2.37 acres along Route 5 (Main Road) in the Town of Newstead, with an Akron address. A substantial barn/shop and broad lawn provide additional physical components for storage, equipment, hobby, workshop, or other uses subject to applicable approvals. Buffalo, Buffalo Niagara International Airport, and the NYS Thruway are within an easy drive. The improvements date to 1850.

Key Highlights

• Three tenant‑occupied residential units across two structures
• Duplex includes 4‑bed/1‑bath and 1‑bed/1‑bath apartments
• Separate 3‑bed apartment with private entrance

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

$20,916

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

4.27%

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%

$418,320 $418.3K

Cap Rate 7%

$298,800 $298.8K

Cap Rate 9%

$232,400 $232.4K

Market Conditions

NOI Build-Up for 3,253 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

$44.9K $13.80/SF

− Vacancy

−$15.0K −$4.61/SF

EGI

$29.9K $9.19/SF

− OpEx

−$9.0K −$2.76/SF

NOI

$20.9K $6.43/SF

Area

Erie County, NY

Vacancy

33.44%

Lease Rate

$13.80 /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%

$418,320

Cap Rate 7%

$298,800

Cap Rate 9%

$232,400

Alternative Uses

Best Use

Multifamily LT 5

$298.8K

$261.5K – $348.6K (±1% cap)

NOI $20,916 @ 7.0% cap · market cap 4.27%

Second Best

Apartment 5plus

$268.3K

$234.8K – $313.0K (±1% cap)

NOI $18,782 @ 7.0% cap · market cap 3.83%

Theoretical Best

Office A

$711.1K

$622.2K – $829.7K (±1% cap)

NOI $49,779 @ 7.0% cap · market cap 10.16%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Auto Parts Store Big Box & Wholesale Store Garden Center Grocery & Convenience Store Pharmacy Auto Repair Shop

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

Lease Details

3

Residential units

100%

Occupancy

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

35

Businesses Nearby

Explore this area Business Placement

Demographics for 14001, NY

9,482

Population

4,477

Households

2.1

Avg Household Size

47

Median Age

26%

College-Educated

91%

High-School Grad

64.5 sq mi

ZIP Area

147

Density / Sq Mi

$73,786

Median Household Income

$46,220

Median Earnings

$744

Median Rent

$221,000

Median Home Value

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Multifamily property - Tenant-occupied residences include a duplex and a separate apartment with attached garage spaces.

Where is this multifamily property located?

The property is located at 12720 Main Road Newstead, NY.

What is the asking price?

The asking price for this property is $489,900.

What are key features of this property?

This property features: Three tenant‑occupied residential units across two structures; Duplex includes 4‑bed/1‑bath and 1‑bed/1‑bath apartments; Separate 3‑bed apartment with private entrance