Renovated Restaurant
For Sale
$3,999,000
222 Avenue U, Brooklyn, NY 11223
Commercial, Brooklyn, NY
Property Size4,000 SF
Lot Size0.09 Acres
Price / SF$999.75
Days on Market233
Property Features for 222 Avenue U
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
R5
Basement
Finished, Full
Subdivision
Gravesend
Standard status
Active
Size
4,000 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Annual Amount
24614
Building Details
Year built
1940
Floors in Building
1
Number of units
1
Building materials
Brick
Roof type
Flat
Listing Agency:
Momentum Real Estate LLC
Listed By:
Meijuan (Minnie) Lin · License #MJL6058
(718) 382-0001
Added: Jan 21
Changed: Sep 5
Last Checked: Sep 11 at 10:06AM
MLS# 498543
Copyright © 2026 Brooklyn New York Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This renovated brick commercial building at 222 Avenue U in Brooklyn is currently operating as a restaurant. The property includes a finished basement identified for use as a party room, adding functional space beyond the primary restaurant operation. A flat roof and the building’s 1940 construction date are also documented.
The property is located in Gravesend, Brooklyn, along Avenue U, and carries R5 zoning. The sale includes a triple net lease structure, providing an established occupancy and lease framework for an investor. Its restaurant configuration and finished lower-level space support continued food-service use while preserving the documented party-room setup.
The property is located in Gravesend, Brooklyn, along Avenue U, and carries R5 zoning. The sale includes a triple net lease structure, providing an established occupancy and lease framework for an investor. Its restaurant configuration and finished lower-level space support continued food-service use while preserving the documented party-room setup.
Key Highlights
- Renovated commercial restaurant building at 222 Avenue U, Brooklyn, NY 11223
- Currently operating as a restaurant
- Finished basement identified for use as a party room
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
$231,840
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
5.80%
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%
$4,636,800
$4.6M
Cap Rate 7%
$3,312,000
$3.3M
Cap Rate 9%
$2,576,000
$2.6M
Market Conditions
NOI Build-Up for 4,000 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
$336.0K $84.00/SF
− Vacancy
−$26.9K −$6.72/SF
EGI
$309.1K $77.28/SF
− OpEx
−$77.3K −$19.32/SF
NOI
$231.8K $57.96/SF
Area
Brooklyn, NY
Vacancy
8.00%
Lease Rate
$84.00 /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%
$4,636,800
Cap Rate 7%
$3,312,000
Cap Rate 9%
$2,576,000
Alternative Uses
Best Use
Specialty Retail
$3.31M
$2.90M – $3.86M
NOI $231,840 @ 7.0% cap · market cap 5.80%
Second Best
Retail
$2.74M
$2.40M – $3.20M
NOI $191,818 @ 7.0% cap · market cap 4.80%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,120
Businesses Nearby
76k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 55%
Groceries 30%
Dining 10%
Electronics 5%
Petco
Shops & Services
23,136 visits/mo
0.4 miles
Super Foodtown
Groceries
19,340 visits/mo
0.5 miles
Sunoco
Shops & Services
15,934 visits/mo
0.4 miles
Dunkin' Donuts
Dining
5,859 visits/mo
0.5 miles
C-Town Supermarkets
Groceries
3,615 visits/mo
0.3 miles
Demographics for 11223, NY
83,519
Population
28,857
Households
2.9
Avg Household Size
37
Median Age
34%
College-Educated
78%
High-School Grad
2.1 sq mi
ZIP Area
39,771
Density / Sq Mi
$63,950
Median Household Income
$40,592
Median Earnings
$1,653
Median Rent
$1,063,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Northeast region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Operating restaurant property with a finished basement suitable for a party room.
Where is this conventional restaurant located?
The property is located at 222 Avenue U Brooklyn, NY.
What is the asking price?
The asking price for this property is $3,999,000.
What are key features of this property?
This property features: Renovated commercial restaurant building at 222 Avenue U, Brooklyn, NY 11223; Currently operating as a restaurant; Finished basement identified for use as a party room
