Restaurant Building with Municipal
For Sale
Contact for pricing
40 E MAIN ST, Riverhead, NY 11901
Leased restaurant property with two operating tenants and access to parking behind the building in a walkable downtown setting.
Property Size4,073 SF
Price / SF$255.34
Days on Market90
Property Features for 40 E MAIN ST
General Information
Standard status
Active
Size
4,073 SF
Class
B
Property subtype
Retail
Zoning
DC-1
Lease Type
Modified Gross
Investment Type
Stabilized
Building Details
Year Built
1978
Buildings
1
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Manhattan
(212) 430-5196
Listed By:
Michael Tuccillo · License #NY 10401244358
Source:
Crexi
Added: Jun 2
Changed: Aug 30
Last Checked: Aug 30 at 7:40AM
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 Marcus & Millichap - Manhattan
Investment Insights
Based on property information with market context.
The property is a 4,073-square-foot restaurant building on a 0.07-acre parcel at 40 E Main St in Riverhead, NY. Constructed in 1978, the building contains commercial space occupied by Haiku Sushi and Olga’s, creating a two-tenant configuration. The property is zoned DC-1.
Municipal parking is located directly behind the building, supporting access within Riverhead’s walkable downtown core. The existing lease occupancy and restaurant use provide an established operating configuration for the asset.
Municipal parking is located directly behind the building, supporting access within Riverhead’s walkable downtown core. The existing lease occupancy and restaurant use provide an established operating configuration for the asset.
Key Highlights
- 4,073 square feet of commercial space on a 0.07‑acre parcel
- Two current restaurant tenants: Haiku Sushi and Olga’s
- Municipal parking located immediately behind the building
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
$79,631
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
7.66%
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%
$1,592,620
$1.6M
Cap Rate 7%
$1,137,586
$1.1M
Cap Rate 9%
$884,789
$884.8K
Market Conditions
NOI Build-Up for 4,073 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
$122.2K $30.00/SF
− Vacancy
−$8.4K −$2.07/SF
EGI
$113.8K $27.93/SF
− OpEx
−$34.1K −$8.38/SF
NOI
$79.6K $19.55/SF
Area
Suffolk County, NY
Vacancy
6.90%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,592,620
Cap Rate 7%
$1,137,586
Cap Rate 9%
$884,789
Alternative Uses
Best Use
Retail
$1.14M
$995.4K – $1.33M
NOI $79,631 @ 7.0% cap · market cap 7.66%
Second Best
Specialty Retail
$1.06M
$925.7K – $1.23M
NOI $74,057 @ 7.0% cap · market cap 7.12%
Theoretical Best
Office A
$1.24M
$1.09M – $1.45M
NOI $86,858 @ 7.0% cap · market cap 8.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,426
Businesses Nearby
55k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 53%
Dining 39%
Home Improvements & Furnishings 5%
Hotels & Casinos 2%
McDonald's
Dining
20,381 visits/mo
0.1 miles
7-Eleven
Shops & Services
7,782 visits/mo
0.4 miles
Shell
Shops & Services
7,092 visits/mo
0.2 miles
Chase Bank
Shops & Services
6,933 visits/mo
0.1 miles
76
Shops & Services
3,291 visits/mo
0.2 miles
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 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 - Leased restaurant property with two operating tenants and access to parking behind the building in a walkable downtown setting.
Where is this conventional restaurant located?
The property is located at 40 E MAIN ST Riverhead, NY.
What is the asking price?
The asking price for this property is $1,040,000.
What are key features of this property?
This property features: 4,073 square feet of commercial space on a 0.07‑acre parcel; Two current restaurant tenants: Haiku Sushi and Olga’s; Municipal parking located immediately behind the building
