Building Details

Year Built 1950

Buildings 2

Stories 1

Listing Agency: Gregory Tarone g***@taroneesq.com

Listed By: Greg Tarone · License #NY 10491212413

Source: Crexi

Added: Dec 15, 2022 Changed: Aug 7 Last Checked: Aug 8 at 4:34AM

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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 Gregory Tarone

Investment Insights

Based on property information with market context.

The Sullivan Motel & Diner presents an investment opportunity in Parksville, NY. Located at 960 and 968 Parksville Rd, also known as 7234 Route 17 W, the property includes 23 rooms, comprising 22 guest rooms and a manager's apartment. Constructed in 1990, the two-story building offers approximately 6,000 square feet of space on a 2.42-acre lot. The property is zoned C and features a modular diner and a stream, with potential for fly fishing access. The site benefits from an upgraded septic system and the possibility of expansion with cabins along the stream border. The property is currently vacant and requires updating, including repairs to one room damaged by fire. The location is near a frequently visited gas station and diner, which attracts truckers. The property offers potential as a truck stop, motel, and fly fishing destination. The property has updated sewer and water. The seller is offering a First Purchase Money Mortgage without any subrogation rights: 30% down, balance of 70% at 6% interest-only monthly up to five (5) years, with no fees or prepayment penalty.

Key Highlights

• Owner financing available: 30% down, 70% at 6% interest‑only monthly up to five years, with no prepayment penalty or fees.
• Prime location next to a frequented gas station and diner, attracting truckers and offering growth potential.
• 23 rooms (22 motel rooms plus manager’s apartment) provide immediate income potential.

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

$77,598

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

7.80%

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%

$1,551,960 $1.6M

Cap Rate 7%

$1,108,543 $1.1M

Cap Rate 9%

$862,200 $862.2K

Market Conditions

NOI Build-Up for 6,000 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

$108.0K $18.00/SF

− Vacancy

−$4.5K −$0.76/SF

EGI

$103.5K $17.24/SF

− OpEx

−$25.9K −$4.31/SF

NOI

$77.6K $12.93/SF

Area

Sullivan County, NY

Vacancy

4.20%

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%

$1,551,960

Cap Rate 7%

$1,108,543

Cap Rate 9%

$862,200

Alternative Uses

Best Use

Specialty Retail

$1.11M

$970.0K – $1.29M (±1% cap)

NOI $77,598 @ 7.0% cap · market cap 7.80%

Second Best

Hotel Hospitality

$549.6K

$480.9K – $641.3K (±1% cap)

NOI $38,475 @ 7.0% cap · market cap 3.87%

Theoretical Best

Office A

$1.65M

$1.44M – $1.92M (±1% cap)

NOI $115,200 @ 7.0% cap · market cap 11.58%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Location Intelligence

Trade Area within ½ mile

10

Businesses Nearby

2k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Citgo Shops & Services

1,582 visits/mo 0.1 miles

Demographics for 12768, NY

958

Population

784

Households

1.2

Avg Household Size

50

Median Age

25%

College-Educated

80%

High-School Grad

33.1 sq mi

ZIP Area

29

Density / Sq Mi

$34,406

Median Household Income

$23,879

Median Earnings

$271,300

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

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

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Similar Off Market Nearby

• New Memories — 862 Parksville Rd, Parksville, NY 12768

Frequently Asked Questions

What type of property is this?

Motel - Hospitality property with 23 rooms, diner, and stream access.

Where is this motel located?

The property is located at State Rte 17 W Parksville, NY.

What is the asking price?

The asking price for this property is $995,000.

What are key features of this property?

This property features: Owner financing available: 30% down, 70% at 6% interest‑only monthly up to five years, with no prepayment penalty or fees.; Prime location next to a frequented gas station and diner, attracting truckers and offering growth potential.; 23 rooms (22 motel rooms plus manager’s apartment) provide immediate income potential.