Restaurant Building with Studio
For Sale
$214,900
7600 Southwestern Blvd, Derby, NY 14047
Former restaurant property includes remodeled furnished studio units plus additional studio and storage configuration opportunities.
Property Size2,412 SF
Lot Size2.03 Acres
Days on Market51
Property Features for 7600 Southwestern Blvd
General Information
Standard status
Active
Size
2,412 SF
Lot size
2.03 Acres
Property subtype
Commercial
Additional Details
Road Access
Yes
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$4,153
Building Details
Building Size
2,412 SF
Year Built
1970
Stories
1
Units
5
Listing Agency:
(716) 868-3695
Listed By:
Cathy Brown
(716) 868-3695
Source:
Elliman
Added: Jul 12
Changed: Aug 20
Last Checked: Aug 30 at 6:03PM
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 Cathy Brown
Investment Insights
Based on property information with market context.
This property is set up for mixed income use, featuring a former restaurant with studio apartment components. Plumbing was updated for the studio units in 2018, and newer windows have been installed. Units 1 and 4 are fully remodeled and furnished, each with in-unit appliances noted in the information. Unit 2 is described as a storage building with two storage closets and an attic, with the option to remodel for additional studio space. Unit 3 has been gutted and is ready for remodeling. The property also includes separate electric meters and water included in the rents.
The site provides a large parking area with substantial on-site space for larger equipment such as tractor trailers. The property has 622 feet of frontage on Southwestern Blvd and is described as centrally located near Eden and convenient to Rt 90 between Hamburg, Derby, Angola and Eden.
As presented, the diner suffered a smoke fire while remaining structurally sound per the Town of Evans, with the remainder of the property offering a combination of move-in ready furnished units and additional space for further build-out.
The site provides a large parking area with substantial on-site space for larger equipment such as tractor trailers. The property has 622 feet of frontage on Southwestern Blvd and is described as centrally located near Eden and convenient to Rt 90 between Hamburg, Derby, Angola and Eden.
As presented, the diner suffered a smoke fire while remaining structurally sound per the Town of Evans, with the remainder of the property offering a combination of move-in ready furnished units and additional space for further build-out.
Key Highlights
- 2.03‑acre property with former restaurant plus income from 4 studio apartments
- Plumbing updated for studio units in 2018
- Units 1 and 4 are 100% remodeled and fully furnished (ready to rent as studios or AirBnB)
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
$13,926
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
6.48%
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%
$278,520
$278.5K
Cap Rate 7%
$198,943
$198.9K
Cap Rate 9%
$154,733
$154.7K
Market Conditions
NOI Build-Up for 2,412 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
$39.1K $16.20/SF
− Vacancy
−$13.8K −$5.70/SF
EGI
$25.3K $10.50/SF
− OpEx
−$11.4K −$4.72/SF
NOI
$13.9K $5.77/SF
Area
Erie County, NY
Vacancy
35.20%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$278,520
Cap Rate 7%
$198,943
Cap Rate 9%
$154,733
Alternative Uses
Best Use
Specialty Retail
$414.9K
$363.1K – $484.1K
NOI $29,045 @ 7.0% cap · market cap 13.52%
Second Best
Apartment 5plus
$198.9K
$174.1K – $232.1K
NOI $13,926 @ 7.0% cap · market cap 6.48%
Theoretical Best
Office A
$527.3K
$461.4K – $615.2K
NOI $36,909 @ 7.0% cap · market cap 17.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
9
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Short term rental property - Former restaurant property includes remodeled furnished studio units plus additional studio and storage configuration opportunities.
Where is this short term rental property located?
The property is located at 7600 Southwestern Blvd Derby, NY.
What is the asking price?
The asking price for this property is $214,900.
What are key features of this property?
This property features: 2.03‑acre property with former restaurant plus income from 4 studio apartments; Plumbing updated for studio units in 2018; Units 1 and 4 are 100% remodeled and fully furnished (ready to rent as studios or AirBnB)
