Office Building with Private
New
For Sale
$1,400,000
225 Howell Ave, Riverhead, NY 11901
DC-3 zoning accompanies a move-in-ready layout for professional and administrative operations.
Property Size4,736 SF
Price / SF$280
Days on Market2
Property Features for 225 Howell Ave
General Information
Standard status
Active
Size
4,736 SF
Property subtype
Commercial
Zoning
DC-3
Taxes and HOA fees
Annual Taxes
$29,128
Amenities
full kitchen
conference room
Building Details
Building Size
4,736 SF
Year Built
1962
Buildings
1
Listing Agency:
DOUGLAS ELLIMAN REAL ESTATE
Listed By:
Richard Connelly · License #977929
(631) 953-5750
Source:
Elliman
Added: Sep 4
Last Checked: Sep 4 at 3:03PM
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 DOUGLAS ELLIMAN REAL ESTATE
Investment Insights
Based on property information with market context.
This 5,000-square-foot office building at 225 Howell Ave includes eight private offices, an open central workspace arranged with cubicles, and a conference room for meetings and presentations. The interior also provides a full kitchen and a layout suited to office, professional, or administrative functions. Built in 1962, the property is designated DC-3.
On-site parking accommodates twenty plus vehicles for employees and visitors. The property is located in Riverhead, NY, with a Walk Score of 74 and a Bike Score of 57. Buyers should confirm permitted uses with the town of Riverhead.
On-site parking accommodates twenty plus vehicles for employees and visitors. The property is located in Riverhead, NY, with a Walk Score of 74 and a Bike Score of 57. Buyers should confirm permitted uses with the town of Riverhead.
Key Highlights
- 5,000‑square‑foot office building with eight private offices
- Open central workspace with cubicles for additional workstations
- Conference room, full kitchen, and move‑in‑ready interior
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
$85,977
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
6.14%
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%
$1,719,540
$1.7M
Cap Rate 7%
$1,228,243
$1.2M
Cap Rate 9%
$955,300
$955.3K
Market Conditions
NOI Build-Up for 5,000 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
$139.8K $27.96/SF
− Vacancy
−$25.2K −$5.03/SF
EGI
$114.6K $22.93/SF
− OpEx
−$28.7K −$5.73/SF
NOI
$86.0K $17.20/SF
Area
Suffolk County, NY
Vacancy
18.00%
Lease Rate
$27.96 /SF/Yr
Expense Ratio
25.00%
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%
$1,719,540
Cap Rate 7%
$1,228,243
Cap Rate 9%
$955,300
Alternative Uses
Best Use
Office B
$1.23M
$1.07M – $1.43M
NOI $85,977 @ 7.0% cap · market cap 6.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.52M
$1.33M – $1.78M
NOI $106,626 @ 7.0% cap · market cap 7.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,059
Businesses Nearby
Explore this area
Business Placement
Demographics for 11901, NY
30,936
Population
13,126
Households
2.4
Avg Household Size
42
Median Age
21%
College-Educated
79%
High-School Grad
56.7 sq mi
ZIP Area
546
Density / Sq Mi
$83,252
Median Household Income
$39,949
Median Earnings
$2,195
Median Rent
$437,500
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - DC-3 zoning accompanies a move-in-ready layout for professional and administrative operations.
Where is this office building located?
The property is located at 225 Howell Ave Riverhead, NY.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 5,000‑square‑foot office building with eight private offices; Open central workspace with cubicles for additional workstations; Conference room, full kitchen, and move‑in‑ready interior
