Listing Agency: Douglas Elliman Commercial Division m***@elliman.com Show Phone

Listed By: Michael Murphy · License #NY 10491211076

Source: Crexi

Added: Oct 11, 2024 Changed: Aug 17 Last Checked: Aug 19 at 5:20AM

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Investment Insights

Based on property information with market context.

This property features two freestanding buildings situated on 0.77 acres on Montauk Highway in Blue Point. The property includes an 11,800 square foot warehouse, which will be delivered vacant. The warehouse has one 14-foot drive-in door and 14-foot clear ceilings. There is parking for approximately 12 vehicles. The location is less than 10 minutes from Islip MacArthur Airport and convenient to major thoroughfares. The property is surrounded by local and national businesses. The front unit has gas, and the rear has oil. The roof has been recently repaired. Additionally, there is a stand-alone 2,000 square foot retail building occupied by a long-term tenant, an insurance company, with three years remaining on the lease, paying $3,500 per month. This property is an industrial and warehouse opportunity.

Key Highlights

• 11,800 SF Vacant Warehouse Ideal for End User
• Income‑Producing 2,000 SF Retail Building with Longtime Tenant ($3500/Month)
• Located on Heavily Traveled Montauk Highway in Blue Point

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

$195,928

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

9.11%

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%

$3,918,560 $3.9M

Cap Rate 7%

$2,798,971 $2.8M

Cap Rate 9%

$2,176,978 $2.2M

Market Conditions

NOI Build-Up for 13,800 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

$298.1K $21.60/SF

− Vacancy

−$18.2K −$1.32/SF

EGI

$279.9K $20.28/SF

− OpEx

−$84.0K −$6.08/SF

NOI

$195.9K $14.20/SF

Area

Suffolk County, NY

Vacancy

6.10%

Lease Rate

$21.60 /SF/Yr

Expense Ratio

30.00%

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%

$3,918,560

Cap Rate 7%

$2,798,971

Cap Rate 9%

$2,176,978

Alternative Uses

Best Use

Retail

$3.85M

$3.37M – $4.50M (±1% cap)

NOI $269,804 @ 7.0% cap · market cap 12.55%

Second Best

Warehouse

$3.02M

$2.64M – $3.52M (±1% cap)

NOI $211,478 @ 7.0% cap · market cap 9.84%

Theoretical Best

Office A

$4.20M

$3.68M – $4.90M (±1% cap)

NOI $294,288 @ 7.0% cap · market cap 13.69%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Five Star Coverage Insurance Agency

Suggested Use

Top Pick Dental Office Law Firm Real Estate Agency Grocery & Convenience Store (Bike/Boat/Book/etc) Store Accounting Firm

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

438

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 11715, NY

4,423

Population

1,742

Households

2.5

Avg Household Size

45

Median Age

57%

College-Educated

97%

High-School Grad

1.7 sq mi

ZIP Area

2,602

Density / Sq Mi

$157,905

Median Household Income

$91,766

Median Earnings

$2,200

Median Rent

$593,500

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

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Frequently Asked Questions

What type of property is this?

Warehouse - Two buildings on 0.77 acres in Blue Point.

Where is this warehouse located?

The property is located at 75 Montauk Hwy Blue Point, NY.

What is the asking price?

The asking price for this property is $2,150,000.

What are key features of this property?

This property features: 11,800 SF Vacant Warehouse Ideal for End User; Income‑Producing 2,000 SF Retail Building with Longtime Tenant ($3500/Month); Located on Heavily Traveled Montauk Highway in Blue Point