Mixed-Use Investment Properties
For Sale
$799,000
1506 HERTEL AVE, Buffalo, NY 14216
Two neighboring buildings each offer a first-floor storefront and a second-floor residential apartment for combined income potential.
Property Size4,106 SF
Price / SF$194.59
Days on Market36
Property Features for 1506 HERTEL AVE
General Information
Standard status
Active
Size
4,106 SF
Property subtype
General Commercial
Additional Details
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$8,341
Amenities
Gas
3
Shingle
10 Parking Spaces.
Rectangular
40X110
Other Road Type, Rectangular.
Building Details
Year Built
1900
Stories
2
Listing Agency:
716 Realty Group WNY LLC
(716) 864-1055
Listed By:
Gregory Straus · License #10491211091
(716) 864-1055
Source:
Xome
Added: Jul 20
Changed: Aug 23
Last Checked: Aug 24 at 3:52AM
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 716 Realty Group WNY LLC
Investment Insights
Based on property information with market context.
This offering includes two neighboring mixed-use commercial properties being sold together as a package. Each building features a commercial storefront on the first floor and a residential apartment on the second floor, creating multiple income-producing possibilities within each structure.
The properties are located side by side in an established commercial corridor, with convenient access to surrounding businesses. The listing notes that the properties are also available individually under separate listings.
Overall, the combined package provides an owner the ability to hold two mixed-use buildings with the same basic configuration, while maintaining flexibility to acquire one or both properties depending on investment goals.
The properties are located side by side in an established commercial corridor, with convenient access to surrounding businesses. The listing notes that the properties are also available individually under separate listings.
Overall, the combined package provides an owner the ability to hold two mixed-use buildings with the same basic configuration, while maintaining flexibility to acquire one or both properties depending on investment goals.
Key Highlights
- Two neighboring mixed‑use commercial buildings offered together (listed separately under B1698518 and B1698526)
- Each building features a first‑floor storefront plus a second‑floor residential apartment
- Heating: 3 (per interior features); Cooling: gas (per interior features)
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
$44,345
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
5.55%
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%
$886,900
$886.9K
Cap Rate 7%
$633,500
$633.5K
Cap Rate 9%
$492,722
$492.7K
Market Conditions
NOI Build-Up for 4,106 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
$78.8K $19.20/SF
− Vacancy
−$7.9K −$1.92/SF
EGI
$71.0K $17.28/SF
− OpEx
−$26.6K −$6.48/SF
NOI
$44.3K $10.80/SF
Area
Buffalo, NY
Vacancy
10.00%
Lease Rate
$19.20 /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%
$886,900
Cap Rate 7%
$633,500
Cap Rate 9%
$492,722
Alternative Uses
Best Use
Mixed Use
$633.5K
$554.3K – $739.1K
NOI $44,345 @ 7.0% cap · market cap 5.55%
Second Best
Retail
$571.4K
$499.9K – $666.6K
NOI $39,995 @ 7.0% cap · market cap 5.01%
Theoretical Best
Office A
$987.4K
$864.0K – $1.15M
NOI $69,119 @ 7.0% cap · market cap 8.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
719
Businesses Nearby
Explore this area
Business Placement
Demographics for 14216, NY
22,979
Population
12,773
Households
1.8
Avg Household Size
37
Median Age
54%
College-Educated
94%
High-School Grad
2.8 sq mi
ZIP Area
8,207
Density / Sq Mi
$70,260
Median Household Income
$47,823
Median Earnings
$1,152
Median Rent
$260,700
Median Home Value
Market
Vacancy Rate% for Retail in Buffalo, NY
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two neighboring buildings each offer a first-floor storefront and a second-floor residential apartment for combined income potential.
Where is this mixed-use property located?
The property is located at 1506 HERTEL AVE Buffalo, NY.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Two neighboring mixed‑use commercial buildings offered together (listed separately under B1698518 and B1698526); Each building features a first‑floor storefront plus a second‑floor residential apartment; Heating: 3 (per interior features); Cooling: gas (per interior features)
