Mixed-Use Property with
For Sale
$449,000
6558 Lake Shore Road, Derby, NY 14047
Renovated, furnished building with updated equipment and mechanical systems, zoned R-IL/Residence Lakefront District.
Property Size3,680 SF
Price / SF$122.01
Days on Market10
Property Features for 6558 Lake Shore Road
General Information
Standard status
Active
Size
3,680 SF
Property subtype
Multi-Unit
Building Details
Building Size
3,680 SF
Listing Agency:
Buffalo Office
(716) 852-7500
Listed By:
David P. Seider
(716) 852-7500
Source:
Pyramidbrokerage
Added: Aug 22
Changed: Aug 29
Last Checked: Aug 31 at 12:41PM
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 Buffalo Office
Investment Insights
Based on property information with market context.
This 3,680-square-foot mixed-use property combines a furnished dining-room operation with a separate residential component. The interior has been renovated, while the furniture, fixtures, equipment, and mechanical systems have been updated. A two-bedroom apartment occupies the second floor above the dining room, providing an additional component within the property.
The property is located at 6558 Lake Shore Road in Derby, NY, along the Seaway Trail. Access is supported by proximity to Route 5 and 20. Graycliff Conservancy, designed by Frank Lloyd Wright, is also nearby. The property is zoned R-IL/Residence Lakefront District.
The property is located at 6558 Lake Shore Road in Derby, NY, along the Seaway Trail. Access is supported by proximity to Route 5 and 20. Graycliff Conservancy, designed by Frank Lloyd Wright, is also nearby. The property is zoned R-IL/Residence Lakefront District.
Key Highlights
- 3,680‑square‑foot mixed‑use property at 6558 Lake Shore Road, Derby, NY
- Second‑floor 2‑bedroom apartment above the dining room
- Renovated and fully furnished interior
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
$34,569
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
7.70%
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%
$691,380
$691.4K
Cap Rate 7%
$493,843
$493.8K
Cap Rate 9%
$384,100
$384.1K
Market Conditions
NOI Build-Up for 3,680 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
$66.2K $18.00/SF
− Vacancy
−$10.9K −$2.97/SF
EGI
$55.3K $15.03/SF
− OpEx
−$20.7K −$5.64/SF
NOI
$34.6K $9.39/SF
Area
Erie County, NY
Vacancy
16.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$691,380
Cap Rate 7%
$493,843
Cap Rate 9%
$384,100
Alternative Uses
Best Use
Specialty Retail
$633.1K
$553.9K – $738.6K
NOI $44,315 @ 7.0% cap · market cap 9.87%
Second Best
Mixed Use
$493.8K
$432.1K – $576.2K
NOI $34,569 @ 7.0% cap · market cap 7.70%
Theoretical Best
Office A
$804.5K
$703.9K – $938.6K
NOI $56,313 @ 7.0% cap · market cap 12.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
160
Businesses Nearby
Explore this area
Business Placement
Demographics for 14047, NY
6,152
Population
2,707
Households
2.3
Avg Household Size
47
Median Age
19%
College-Educated
91%
High-School Grad
13.1 sq mi
ZIP Area
470
Density / Sq Mi
$76,525
Median Household Income
$45,546
Median Earnings
$964
Median Rent
$180,800
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?
Mixed-use property - Renovated, furnished building with updated equipment and mechanical systems, zoned R-IL/Residence Lakefront District.
Where is this mixed-use property located?
The property is located at 6558 Lake Shore Road Derby, NY.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: 3,680‑square‑foot mixed‑use property at 6558 Lake Shore Road, Derby, NY; Second‑floor 2‑bedroom apartment above the dining room; Renovated and fully furnished interior
