Bar and Restaurant with
For Sale
$499,900
6848 Erie Road, Derby, NY 14047
Established bar and restaurant with dining, covered deck, and an attached two-bedroom apartment.
Property Size3,036 SF
Price / SF$235.47
Days on Market89
Property Features for 6848 Erie Road
General Information
Standard status
Active
Size
3,036 SF
Total Parking Spaces
35
Property subtype
Mixed Use
Additional Details
Business Included
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$7,607
Building Details
Building Size
3,036 SF
Year Built
1960
Listing Agency:
WNY Metro Roberts Realty
(716) 725-8725
Listed By:
Kimberly Hulburd · License #40HU0735049
(716) 725-8725
Source:
Highfallssir
Added: May 28
Changed: Aug 23
Last Checked: Aug 23 at 4:56AM
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 WNY Metro Roberts Realty
Investment Insights
Based on property information with market context.
This sale features a well-established bar and restaurant with a functional back-of-house for full-service operations. The 18x28 bar area includes an 18-foot bar top, supported by a 30x30 dining room designed for larger gatherings. A 29x11 kitchen is complemented by a recently updated 10x8 walking cooler, along with a 20x20 storage and office area to support day-to-day needs. Outdoor space is provided by a 34x16 covered deck for patrons.
The property sits on a corner lot and is vinyl sided, with a blacktop parking area accommodating approximately 35 vehicles. Quick Draw and Lottery machines are already in place.
The layout also includes an 800 sq ft two-bedroom apartment (with newer windows) that could generate $800/month in rental income, supported by the apartment’s room sizes and additional private outdoor space including a 10x11 deck. With central air, forced air heating, and two-zone baseboard heating, the building is configured for year-round comfort across both the operating area and the residence.
The property sits on a corner lot and is vinyl sided, with a blacktop parking area accommodating approximately 35 vehicles. Quick Draw and Lottery machines are already in place.
The layout also includes an 800 sq ft two-bedroom apartment (with newer windows) that could generate $800/month in rental income, supported by the apartment’s room sizes and additional private outdoor space including a 10x11 deck. With central air, forced air heating, and two-zone baseboard heating, the building is configured for year-round comfort across both the operating area and the residence.
Key Highlights
- Established bar and restaurant with an 18x28 bar area and an 18‑foot bar top
- 30x30 dining room plus a 29x11 kitchen with equipment and a recently updated 10x8 walking cooler
- 34x16 covered deck for patrons and Quick Draw/lottery machines already in place
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
$25,565
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
5.11%
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%
$511,300
$511.3K
Cap Rate 7%
$365,214
$365.2K
Cap Rate 9%
$284,056
$284.1K
Market Conditions
NOI Build-Up for 2,123 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
$38.2K $18.00/SF
− Vacancy
−$4.1K −$1.94/SF
EGI
$34.1K $16.06/SF
− OpEx
−$8.5K −$4.01/SF
NOI
$25.6K $12.04/SF
Area
Erie County, NY
Vacancy
10.80%
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%
$511,300
Cap Rate 7%
$365,214
Cap Rate 9%
$284,056
Alternative Uses
Best Use
Specialty Retail
$365.2K
$319.6K – $426.1K
NOI $25,565 @ 7.0% cap · market cap 5.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$464.1K
$406.1K – $541.5K
NOI $32,487 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
257
Businesses Nearby
Under-served
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- The Shore House Bar & Grill — 6558 Lake Shore Rd, Derby, NY 14047
- Meadowbrook Restaurant & Bar — 6848 Erie Rd, Derby, NY 14047
Frequently Asked Questions
What type of property is this?
Bar & Pub - Established bar and restaurant with dining, covered deck, and an attached two-bedroom apartment.
Where is this bar & pub located?
The property is located at 6848 Erie Road Derby, NY.
What is the asking price?
The asking price for this property is $499,900.
What are key features of this property?
This property features: Established bar and restaurant with an 18x28 bar area and an 18‑foot bar top; 30x30 dining room plus a 29x11 kitchen with equipment and a recently updated 10x8 walking cooler; 34x16 covered deck for patrons and Quick Draw/lottery machines already in place
