Professional Office
New
For Sale
$1,400,000
225 HOWELL AVE, Riverhead, NY 11901
DC-3-zoned office property with private rooms, collaborative workspace, conference facilities, kitchen, and on-site parking.
Property Size4,736 SF
Price / SF$295.61
Days on Market5
Property Features for 225 HOWELL AVE
General Information
Standard status
Active
Size
4,736 SF
Property subtype
Mixed Use
Taxes and HOA fees
Annual Taxes
$29,129
Amenities
Central Air
3
Parking.
20 Parking Spaces. Off Street, Lot.
Building Details
Year Built
1962
Listing Agency:
(631) 723-2721
Listed By:
Douglas Elliman Real Estate
(631) 381-5826
Source:
Xome
Added: Aug 31
Changed: Sep 4
Last Checked: Sep 4 at 3:06PM
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 office building at 225 Howell Ave includes eight private offices, an open central work area configured with cubicles, and a conference room for meetings and presentations. A full kitchen and central air add practical support for daily operations. The property was built in 1962 and carries DC-3 zoning, subject to confirmation of permitted uses with the Town of Riverhead.
On-site parking is provided through a 20-space off-street lot. The combination of private rooms, shared workspace, meeting facilities, and staff amenities creates a functional layout for office, professional, or administrative operations.
On-site parking is provided through a 20-space off-street lot. The combination of private rooms, shared workspace, meeting facilities, and staff amenities creates a functional layout for office, professional, or administrative operations.
Key Highlights
- DC‑3 zoning with permitted uses to be confirmed with the Town of Riverhead
- Eight individual private offices
- Open central area configured with cubicles
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
$81,437
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
5.82%
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%
$1,628,740
$1.6M
Cap Rate 7%
$1,163,386
$1.2M
Cap Rate 9%
$904,856
$904.9K
Market Conditions
NOI Build-Up for 4,736 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
$132.4K $27.96/SF
− Vacancy
−$23.8K −$5.03/SF
EGI
$108.6K $22.93/SF
− OpEx
−$27.1K −$5.73/SF
NOI
$81.4K $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%
$1,628,740
Cap Rate 7%
$1,163,386
Cap Rate 9%
$904,856
Alternative Uses
Best Use
Office B
$1.16M
$1.02M – $1.36M
NOI $81,437 @ 7.0% cap · market cap 5.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,996 @ 7.0% cap · market cap 7.21%
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-zoned office property with private rooms, collaborative workspace, conference facilities, kitchen, and on-site parking.
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: DC‑3 zoning with permitted uses to be confirmed with the Town of Riverhead; Eight individual private offices; Open central area configured with cubicles
