Fully Leased Retail Strip
For Sale
$1,650,000
Pending
5640-18 Merrick Rd 4, Massapequa, NY 11758
Fully leased strip mall with long-term tenants and stable income.
Property Size4,400 SF
Days on Market85
Property Features for 5640-18 Merrick Rd 4
General Information
Standard status
Pending
Size
4,400 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$45,440
Building Details
Building Size
4,400 SF
Year Built
1966
Stories
1
Units
4
Listing Agency:
PROMISE REALTY LLC
(516) 984-1762
Listed By:
Unsoo Lee
(516) 984-1762
Source:
Elliman
Added: May 19
Changed: Aug 8
Last Checked: Aug 8 at 3:13PM
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 PROMISE REALTY LLC
Investment Insights
Based on property information with market context.
This retail strip mall is fully leased with long-term tenants through 2033-2038, offering stable income and value-add potential upon renewal. The property is suitable for a 1031 buyer seeking retirement cash flow. The strip mall benefits from high traffic and strong visibility on Merrick Road. It features 17 parking spaces in the front and back. Current tenants include a nail spa, smoke shop, pharmacy, and storage. The property has a walk score of 76, indicating it is very walkable, and a bike score of 50, making it bikeable. The transit score is 20, indicating minimal transit options.
Key Highlights
- High Net Operating Income (NOI) of $100,000 and a 6% Cap Rate
- Fully Leased with Long‑Term Tenants providing Stable Income through 2033‑2038
- High Traffic location on Merrick Rd offering Strong Visibility
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
$87,133
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
5.28%
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%
$1,742,660
$1.7M
Cap Rate 7%
$1,244,757
$1.2M
Cap Rate 9%
$968,144
$968.1K
Market Conditions
NOI Build-Up for 4,400 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
$132.0K $30.00/SF
− Vacancy
−$7.5K −$1.71/SF
EGI
$124.5K $28.29/SF
− OpEx
−$37.3K −$8.49/SF
NOI
$87.1K $19.80/SF
Area
Nassau County, NY
Vacancy
5.70%
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%
$1,742,660
Cap Rate 7%
$1,244,757
Cap Rate 9%
$968,144
Alternative Uses
Best Use
Retail
$1.24M
$1.09M – $1.45M
NOI $87,133 @ 7.0% cap · market cap 5.28%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.91M
$2.55M – $3.39M
NOI $203,643 @ 7.0% cap · market cap 12.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
696
Businesses Nearby
Explore this area
Business Placement
Demographics for 11758, NY
54,226
Population
19,297
Households
2.8
Avg Household Size
44
Median Age
50%
College-Educated
97%
High-School Grad
12.0 sq mi
ZIP Area
4,519
Density / Sq Mi
$157,404
Median Household Income
$72,947
Median Earnings
$2,153
Median Rent
$624,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Fully leased strip mall with long-term tenants and stable income.
Where is this strip mall located?
The property is located at 5640-18 Merrick Rd 4 Massapequa, NY.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: High Net Operating Income (NOI) of $100,000 and a 6% Cap Rate; Fully Leased with Long‑Term Tenants providing Stable Income through 2033‑2038; High Traffic location on Merrick Rd offering Strong Visibility
