Description: Investment opportunity in Yorkshire, NY! 12231–12239 Route 16 is a 12,776 SF multi-tenant retail plaza offered at $590,000 ($46/SF). Built in 1956 and situated on a highly visible stretch of Route 16, this plaza combines steady occupancy with 3,400 SF vacancy (26.6%), making it an ideal value-add play. New Sewer Project Completed in 2025 which adds a great deal of opportunity for this area to be redeveloped. Size: 12,776 SF GLA Occupancy: 76.4% (vacant 2,200 SF retail & 1,200 SF flex) Price: $590,000 Year Built: 1956 Parking: Ratio 1.96 / 1,000 SF Zoning/Use: Retail, Office, Warehouse, Service Highlights: Strong regional traffic along Route 16 Below stabilized market value (stabilized NOI $77,600) Recent upgrades: roof, sewer, cameras Flexible floorplans with roll-up door access This plaza is perfect for investors looking to reposition a local shopping center and capture upside from leasing vacant space. Financial Snapshot - Estimated Estimated Stabilized PGI: $114,984 / year Estimated Stabilized NOI: $77,600 / year (25% OPEX assumption) Estimated Cap Rate Range Applied: 7.5–8.5% Estimated Stabilized Value: $913K–$1.03M (vs. $590K asking) Revenue Projections (Potential Gross Income and Effective Gross Income) The total Gross Leasable Area (GLA) of the plaza is 12,776 square feet. To project a stabilized Potential Gross Income (PGI), it is assumed that the entire GLA is leased at market rates. The listed asking rents for the vacant units provide the most direct indication of market rates for this specific property: Retail space (2,200 SF) at $10.00/SF/YR Flex space (1,200 SF) at $7.50/SF/YR For the remaining 9,376 square feet (12,776 SF total - 3,400 SF vacant), a blended average market rent is assumed. Given the retail and flex nature of the available spaces, a conservative blended average market rent of $9.00/SF/YR for the entire GLA is a reasonable estimate for a stabilized scenario, considering the property's location and condition. Stabilized Potential Gross Income (PGI) Calculation: Total GLA: 12,776 SF Assumed Blended Market Rent: $9.00/SF/YR PGI = 12,776 SF * $9.00/SF/YR = $114,984 per year From PGI, an allowance for vacancy and credit loss must be deducted to arrive at Effective Gross Income (EGI). While the current vacancy is 26.6% , a stabilized vacancy rate for a multi-tenanted retail property in a secondary market like Yorkshire, even with its local demographic challenges, would typically be lower. Considering the Buffalo Niagara region's retail vacancy rate of 10.8% and the national average of 5.6% for Q1 2025 , a stabilized vacancy rate of 10% is a prudent assumption for a property that has been successfully leased up. Effective Gross Income (EGI) Calculation: PGI: $114,984 Stabilized Vacancy & Credit Loss (10%): $11,498.40 EGI = $114,984 - $11,498.40 = $103,485.60 per year Operating Expenses The lease terms for the vacant units are "Modified Gross". This means the landlord is responsible for certain operating expenses, which typically include property taxes, property insurance, and potentially some common area maintenance (CAM) or utility costs not directly passed through to tenants. The provided research material does not include specific historical operating expenses for the subject property or detailed expense ratios for similar properties in Yorkshire or Cattaraugus County. Therefore, an estimated expense ratio must be applied. For a Modified Gross retail property, non-reimbursable operating expenses can range significantly based on property management efficiency, utility costs, and tax assessments. A conservative estimate of 25% of EGI for operating expenses (excluding debt service and capital expenditures) is considered reasonable for this type of property, acknowledging that actual expenses would require detailed financial statements for precise calculation. Net Operating Income (NOI) Calculation: EGI: $103,485.60 Estimated Operating Expenses (25% of EGI): $25,871.40 Stabilized NOI = $103,485.60 - $25,871.40 = $77,614.20 per year