Building Details

Building Size 1,767 SF

Year Built 1959

Units 6

Listing Agency: Keller Williams Upstate New York Properties

Listed By: Jaclyn Marra · License #10401341908 Show Phone

Source: Elliman

Added: Sep 11 Changed: Sep 13 Last Checked: Sep 14 at 9:14AM

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Investment Insights

Based on property information with market context.

This apartment property includes six residential units distributed between two separate buildings. The unit mix comprises four studio apartments in one structure and two one-bedroom apartments in the other. Both buildings date to 1959, creating a compact multifamily configuration with distinct residential spaces across the site.

The property is located at 3 Lillian Dr in Lake Ronkonkoma, near Smithtown Boulevard, Lake Shore Road, and Lake Ronkonkoma. The surrounding area provides access to shopping, services, transportation, and local amenities. The property is marketed independently and is also included in a larger nine-parcel offering that includes neighboring commercial, residential, and vacant land parcels.

Key Highlights

• Six residential units across two separate apartment buildings
• Unit mix includes four studio apartments and two one‑bedroom apartments
• Both residential buildings were constructed in 1959

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

$31,404

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

4.49%

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%

$628,080 $628.1K

Cap Rate 7%

$448,629 $448.6K

Cap Rate 9%

$348,933 $348.9K

Market Conditions

NOI Build-Up for 1,767 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

$61.1K $34.56/SF

− Vacancy

−$4.0K −$2.25/SF

EGI

$57.1K $32.31/SF

− OpEx

−$25.7K −$14.54/SF

NOI

$31.4K $17.77/SF

Area

Suffolk County, NY

Vacancy

6.50%

Lease Rate

$34.56 /SF/Yr

Expense Ratio

45.00%

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%

$628,080

Cap Rate 7%

$448,629

Cap Rate 9%

$348,933

Alternative Uses

Best Use

Apartment 5plus

$448.6K

$392.6K – $523.4K (±1% cap)

NOI $31,404 @ 7.0% cap · market cap 4.49%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$538.3K

$471.0K – $628.0K (±1% cap)

NOI $37,682 @ 7.0% cap · market cap 5.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Apartment buildings

Suggested Use

Top Pick Dental Office Spa & Massage Center Hair Salon Law Firm Skin Care Clinic Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

381

Businesses Nearby

Explore this area Business Placement

Demographics for 11779, NY

38,250

Population

14,145

Households

2.7

Avg Household Size

42

Median Age

31%

College-Educated

94%

High-School Grad

12.5 sq mi

ZIP Area

3,060

Density / Sq Mi

$117,684

Median Household Income

$54,121

Median Earnings

$2,103

Median Rent

$465,400

Median Home Value

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this apartment buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Apartment building - Two residential structures provide a mix of studio and one-bedroom layouts.

Where is this apartment building located?

The property is located at 3 Lillian Dr Lake Ronkonkoma, NY.

What is the asking price?

The asking price for this property is $699,999.

What are key features of this property?

This property features: Six residential units across two separate apartment buildings; Unit mix includes four studio apartments and two one‑bedroom apartments; Both residential buildings were constructed in 1959