Listing Agency: Island Associates Real Estate, Inc. Show Phone

Listed By: Robert Monahan · License #109931506

Source: Moodyscre

Added: Jul 13 Changed: Sep 7 Last Checked: Sep 14 at 10:35AM

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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 Island Associates Real Estate, Inc.

Investment Insights

Based on property information with market context.

This property is a second-generation restaurant/deli offering with equipment included for sale. The asset is presented as a commercial kitchen and restaurant use, with existing operational improvements tied to that food service concept.

In addition to the restaurant/deli component, the listing notes potential additional income from an on-site studio apartment and a garage. The property is offered for sale at 85 Carleton Ave, Islip Terrace, NY 11752.

Key Highlights

• 2nd generation restaurant/deli property for sale
• Includes equipment for the restaurant/deli
• Potential additional income from a studio apartment

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

$54,547

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

5.59%

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%

$1,090,940 $1.1M

Cap Rate 7%

$779,243 $779.2K

Cap Rate 9%

$606,078 $606.1K

Market Conditions

NOI Build-Up for 3,000 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

$78.1K $26.04/SF

− Vacancy

−$5.4K −$1.80/SF

EGI

$72.7K $24.24/SF

− OpEx

−$18.2K −$6.06/SF

NOI

$54.5K $18.18/SF

Area

Suffolk County, NY

Vacancy

6.90%

Lease Rate

$26.04 /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%

$1,090,940

Cap Rate 7%

$779,243

Cap Rate 9%

$606,078

Alternative Uses

Best Use

Specialty Retail

$779.2K

$681.8K – $909.1K (±1% cap)

NOI $54,547 @ 7.0% cap · market cap 5.59%

Second Best

Industrial

$608.5K

$532.4K – $709.9K (±1% cap)

NOI $42,593 @ 7.0% cap · market cap 4.37%

Theoretical Best

Office A

$913.9K

$799.7K – $1.07M (±1% cap)

NOI $63,976 @ 7.0% cap · market cap 6.56%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

B T Express ... Food Market

Suggested Use

Top Pick Dental Office Hair Salon Restaurant Spa & Massage Center Law Firm Real Estate Agency

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

451

Businesses Nearby

15k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

7-Eleven Shops & Services

11,044 visits/mo 0.2 miles

BP Shops & Services

4,253 visits/mo 0.5 miles

Demographics for 11752, NY

9,758

Population

3,180

Households

3.1

Avg Household Size

42

Median Age

32%

College-Educated

94%

High-School Grad

4.0 sq mi

ZIP Area

2,440

Density / Sq Mi

$148,538

Median Household Income

$58,972

Median Earnings

$2,512

Median Rent

$482,300

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Conventional restaurant - For sale restaurant and deli property with equipment included, plus potential additional income from a studio apartment and garage.

Where is this conventional restaurant located?

The property is located at 85 Carleton Ave Islip Terrace, NY.

What is the asking price?

The asking price for this property is $975,000.

What are key features of this property?

This property features: 2nd generation restaurant/deli property for sale; Includes equipment for the restaurant/deli; Potential additional income from a studio apartment