Westhampton Investment
For Sale
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137 Montauk Hwy, West Hampton, NY 11977
13,000+/- sq ft mixed-use property in Westhampton, NY.
Property Size13,000 SF
Price / SF$405.77
Days on Market138
Property Features for 137 Montauk Hwy
General Information
Standard status
Active
Size
13,000 SF
Class
B
Total Parking Spaces
56
Property subtype
Industrial, Mixed Use, Office, Retail, Special Purpose
Zoning
Pre existing - specialty
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Stabilized
Net Operating Income
$261,002
Building Details
Year Renovated
2020
Buildings
2
Stories
1
Units
7
Tenancy
Multi
Listing Agency:
First Hampton
(631) 872-0280
Listed By:
Lawrence Citarelli · License #NY
Source:
Crexi
Added: Mar 26
Changed: Aug 8
Last Checked: Aug 10 at 12:05PM
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 First Hampton
Investment Insights
Based on property information with market context.
This 13,000+/- sq ft mixed-use property presents an investment opportunity in Westhampton, NY. The property is 100% occupied and offers an attractive current Return On Investment (ROI) with potential upside. It is suitable for an investor, end-user, or a combination of both. The property's zoning allows for various uses, including specialty trade, contractor services, warehouse, flex space, storage, office, industrial, showroom, retail, professional, and creative purposes. The location provides easy access and benefits from favorable demographics, with significant demand for its permitted uses in the area. The property features a solid tenant base with leases and escalations in place. The current Net Operating Income (NOI) is $260,451, with the potential to exceed $360,000.
Key Highlights
- High Income Potential: Current $260,451 NOI with potential to exceed $360,000.
- 100% Occupancy: Turn‑key investment with all units currently leased.
- Value‑Add Opportunity: Potential to increase value and income.
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
$231,426
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
4.39%
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%
$4,628,520
$4.6M
Cap Rate 7%
$3,306,086
$3.3M
Cap Rate 9%
$2,571,400
$2.6M
Market Conditions
NOI Build-Up for 13,000 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
$402.5K $30.96/SF
− Vacancy
−$32.2K −$2.48/SF
EGI
$370.3K $28.48/SF
− OpEx
−$138.9K −$10.68/SF
NOI
$231.4K $17.80/SF
Area
Suffolk County, NY
Vacancy
8.00%
Lease Rate
$30.96 /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%
$4,628,520
Cap Rate 7%
$3,306,086
Cap Rate 9%
$2,571,400
Alternative Uses
Best Use
Mixed Use
$3.31M
$2.89M – $3.86M
NOI $231,426 @ 7.0% cap · market cap 4.39%
Second Best
Warehouse
$2.85M
$2.49M – $3.32M
NOI $199,218 @ 7.0% cap · market cap 3.78%
Theoretical Best
Office A
$3.96M
$3.47M – $4.62M
NOI $277,228 @ 7.0% cap · market cap 5.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
308
Businesses Nearby
Explore this area
Business Placement
Demographics for 11977, NY
2,837
Population
1,594
Households
1.8
Avg Household Size
51
Median Age
57%
College-Educated
94%
High-School Grad
5.7 sq mi
ZIP Area
498
Density / Sq Mi
$156,406
Median Household Income
$52,500
Median Earnings
$2,031
Median Rent
$1,039,300
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 13,000+/- sq ft mixed-use property in Westhampton, NY.
Where is this mixed-use property located?
The property is located at 137 Montauk Hwy West Hampton, NY.
What is the asking price?
The asking price for this property is $5,275,000.
What are key features of this property?
This property features: High Income Potential: Current $260,451 NOI with potential to exceed $360,000.; 100% Occupancy: Turn‑key investment with all units currently leased.; Value‑Add Opportunity: Potential to increase value and income.
