Renovated Mixed-Use Restaurant
For Sale
$575,000
165 Madison Avenue, Albany, NY 12207
Two-story building combines restaurant-ready space with a residential apartment.
Property Size3,272 SF
Price / SF$175.73
Days on Market321
Property Features for 165 Madison Avenue
General Information
Standard status
Active
Size
3,272 SF
Total Parking Spaces
6
Property subtype
Commercial Sale / Mixed Use
Zoning
Mixed
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$5,563
Amenities
dedicated employee and customer restrooms
entertainment stage
front and rear entrances
Flat
Central Air, Window Unit(s), Yes
Forced Air, Natural Gas, Yes
2
Full
200+ Amp Service, 220 Volts
Tile, Concrete
Accessible Doors, Accessible Full Bath, Accessible Kitchen
Brick, Wood Siding
2,022.00
No
10.00
2,202.00
Smoke Detector(s), Carbon Monoxide Detector(s)
Building Details
Year Built
1890
Year Renovated
2022
Buildings
1
Stories
2
Construction
brick
Listing Agency:
Howard Hanna Capital Inc
(518) 755-2064
Listed By:
Joseph P Cardinale · License #10401290174
(518) 755-2064
Source:
Compass
Added: Oct 17, 2025
Changed: Aug 31
Last Checked: Sep 2 at 12:02AM
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 Howard Hanna Capital Inc
Investment Insights
Based on property information with market context.
This 3,272-square-foot brick mixed-use property was renovated in 2022 and includes two distinct components. The first floor provides approximately 2,022 square feet of restaurant and retail area with a full commercial kitchen, 6-burner stove, commercial exhaust hood, employee and customer restrooms, dining space, an entertainment stage, and front and rear entrances. The second floor contains a two-bedroom apartment suitable for occupancy or leasing.
The property is located at 165 Madison Avenue in downtown Albany, near the New York State Capitol and MVP Arena. Its Mixed zoning supports the existing combination of commercial and residential space. Building features include central air, forced-air heating with natural gas, accessible doors, an accessible full bath and kitchen, and 200+ Amp Service with 220 Volts. Originally built in 1890, the property combines historic brick construction with updated interior improvements.
The property is located at 165 Madison Avenue in downtown Albany, near the New York State Capitol and MVP Arena. Its Mixed zoning supports the existing combination of commercial and residential space. Building features include central air, forced-air heating with natural gas, accessible doors, an accessible full bath and kitchen, and 200+ Amp Service with 220 Volts. Originally built in 1890, the property combines historic brick construction with updated interior improvements.
Key Highlights
- 3,272‑square‑foot two‑story mixed‑use building at 165 Madison Avenue, Albany, NY 12207
- Renovated in 2022 with restaurant and residential components
- Approximately 2,022 square feet of first‑floor retail and dining area
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
$45,334
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
7.88%
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%
$906,680
$906.7K
Cap Rate 7%
$647,629
$647.6K
Cap Rate 9%
$503,711
$503.7K
Market Conditions
NOI Build-Up for 3,272 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
$64.8K $19.80/SF
− Vacancy
−$4.3K −$1.33/SF
EGI
$60.4K $18.47/SF
− OpEx
−$15.1K −$4.62/SF
NOI
$45.3K $13.86/SF
Area
Albany, NY
Vacancy
6.70%
Lease Rate
$19.80 /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%
$906,680
Cap Rate 7%
$647,629
Cap Rate 9%
$503,711
Alternative Uses
Best Use
Specialty Retail
$647.6K
$566.7K – $755.6K
NOI $45,334 @ 7.0% cap · market cap 7.88%
Second Best
Retail
$564.8K
$494.2K – $658.9K
NOI $39,534 @ 7.0% cap · market cap 6.88%
Theoretical Best
Office A
$863.2K
$755.3K – $1.01M
NOI $60,427 @ 7.0% cap · market cap 10.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
79
Businesses Nearby
Explore this area
Business Placement
Demographics for 12207, NY
2,399
Population
1,553
Households
1.5
Avg Household Size
37
Median Age
36%
College-Educated
90%
High-School Grad
1.0 sq mi
ZIP Area
2,399
Density / Sq Mi
$32,418
Median Household Income
$49,531
Median Earnings
$689
Median Rent
$242,500
Median Home Value
Market
Vacancy Rate% for Retail in Albany, NY
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story building combines restaurant-ready space with a residential apartment.
Where is this mixed-use property located?
The property is located at 165 Madison Avenue Albany, NY.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: 3,272‑square‑foot two‑story mixed‑use building at 165 Madison Avenue, Albany, NY 12207; Renovated in 2022 with restaurant and residential components; Approximately 2,022 square feet of first‑floor retail and dining area
