Holyoke Restaurant Opportunity on
For Sale
Contact for pricing
389 Main St, Holyoke, MA 01040
Legacy restaurant space for sale on Holyoke's Main Street.
Property Size988 SF
Price / SF$150.81
Days on Market1013
Property Features for 389 Main St
General Information
Standard status
Active
Size
988 SF
Class
B
Property subtype
Retail
Zoning
BH
Building Details
Year Built
1920
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
SR Commercial Realty
(413) 557-4846
Listed By:
Jeremy Casey · License #9585695
Source:
Crexi
Added: Nov 1, 2023
Changed: Aug 8
Last Checked: Aug 8 at 11:34AM
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 SR Commercial Realty
Investment Insights
Based on property information with market context.
Located at 389 Main Street in Holyoke, this property presents an opportunity to own and operate a restaurant. The 988 square-foot property is positioned in close proximity to a bus station, offering accessibility for customers and employees. The surrounding area features a mix of residential and commercial properties. The location offers the potential to establish a lasting presence on Main Street.
Key Highlights
- Opportunity to own and operate a legacy restaurant.
- Historic location on Main Street.
- Potential to create a lasting legacy.
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
$12,778
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
8.58%
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%
$255,560
$255.6K
Cap Rate 7%
$182,543
$182.5K
Cap Rate 9%
$141,978
$142.0K
Market Conditions
NOI Build-Up for 988 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
$17.8K $18.00/SF
− Vacancy
−$747 −$0.76/SF
EGI
$17.0K $17.24/SF
− OpEx
−$4.3K −$4.31/SF
NOI
$12.8K $12.93/SF
Area
Hampden County, MA
Vacancy
4.20%
Lease Rate
$18.00 /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%
$255,560
Cap Rate 7%
$182,543
Cap Rate 9%
$141,978
Alternative Uses
Best Use
Specialty Retail
$182.5K
$159.7K – $213.0K
NOI $12,778 @ 7.0% cap · market cap 8.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$608.9K
$532.8K – $710.4K
NOI $42,625 @ 7.0% cap · market cap 28.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,327
Businesses Nearby
61k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 64%
Groceries 25%
Shops & Services 7%
Electronics 4%
McDonald's
Dining
21,799 visits/mo
0.5 miles
Dunkin' Donuts
Dining
17,632 visits/mo
0.4 miles
Key Food
Groceries
15,347 visits/mo
0.4 miles
U-Haul Moving & Storage Of Holyoke
Shops & Services
2,222 visits/mo
0.4 miles
Boost Mobile
Electronics
1,498 visits/mo
0.4 miles
Demographics for 01040, MA
38,238
Population
17,057
Households
2.2
Avg Household Size
39
Median Age
24%
College-Educated
79%
High-School Grad
21.2 sq mi
ZIP Area
1,804
Density / Sq Mi
$51,892
Median Household Income
$41,801
Median Earnings
$1,016
Median Rent
$255,300
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Legacy restaurant space for sale on Holyoke's Main Street.
Where is this conventional restaurant located?
The property is located at 389 Main St Holyoke, MA.
What is the asking price?
The asking price for this property is $149,000.
What are key features of this property?
This property features: Opportunity to own and operate a legacy restaurant.; Historic location on Main Street.; Potential to create a lasting legacy.
