Building Details

Building Size 1,344 SF

Year Built 1890

Stories 2

Units 2

Listing Agency: Frank Lumia Real Estate Plus!, LLC f***@franklumiarealestate.com Show Phone

Listed By: Frank Lumia · License #37LU0818789 Show Phone

Source: Homeprocny

Added: May 29 Changed: Aug 9 Last Checked: Aug 10 at 12:05PM

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Investment Insights

Based on property information with market context.

Located at 581 Main Street in Hobart, this mixed-use property combines a commercial ground floor with residential space above. The building dates to 1890, and the lower level is configured for café and breakfast service with existing equipment in place. The space has operated as The Coffee Pot for more than two decades.

The upper floor includes two residential apartments, creating a combination of commercial and rental uses within one building. The property occupies a corner position in Hobart, a Catskills Book Village destination associated with tourism, outdoor recreation, and second-home activity.

Key Highlights

• Mixed‑use building constructed in 1890
• Ground‑floor café space has operated as The Coffee Pot for over two decades
• Fully equipped, operational food‑service space

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

$20,858

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

6.98%

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%

$417,160 $417.2K

Cap Rate 7%

$297,971 $298.0K

Cap Rate 9%

$231,756 $231.8K

Market Conditions

NOI Build-Up for 1,344 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

$29.0K $21.60/SF

− Vacancy

−$1.2K −$0.91/SF

EGI

$27.8K $20.69/SF

− OpEx

−$7.0K −$5.17/SF

NOI

$20.9K $15.52/SF

Area

Delaware County, NY

Vacancy

4.20%

Lease Rate

$21.60 /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%

$417,160

Cap Rate 7%

$297,971

Cap Rate 9%

$231,756

Alternative Uses

Best Use

Specialty Retail

$298.0K

$260.7K – $347.6K (±1% cap)

NOI $20,858 @ 7.0% cap · market cap 6.98%

Second Best

Apartment 5plus

$203.8K

$178.3K – $237.8K (±1% cap)

NOI $14,265 @ 7.0% cap · market cap 4.77%

Theoretical Best

Office A

$659.4K

$577.0K – $769.3K (±1% cap)

NOI $46,158 @ 7.0% cap · market cap 15.44%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

The Coffee Pot Cafe & Coffee Shop

Suggested Use

Top Pick Building Supply Storage Facility Furniture & Home Goods Grocery & Convenience Store Big Box & Wholesale Store Butcher

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

82

Businesses Nearby

Explore this area Business Placement

Demographics for 13788, NY

870

Population

646

Households

1.3

Avg Household Size

51

Median Age

42%

College-Educated

93%

High-School Grad

34.6 sq mi

ZIP Area

25

Density / Sq Mi

$95,329

Median Household Income

$44,583

Median Earnings

$740

Median Rent

$222,000

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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Frequently Asked Questions

What type of property is this?

Mixed-use property - Ground-floor café space is fully equipped, with two residential apartments above.

Where is this mixed-use property located?

The property is located at 581 Main Street Hobart, NY.

What is the asking price?

The asking price for this property is $299,000.

What are key features of this property?

This property features: Mixed‑use building constructed in 1890; Ground‑floor café space has operated as The Coffee Pot for over two decades; Fully equipped, operational food‑service space