Historic Three-Floor Office
For Sale
$7,250,000
405 Gates Avenue, Brooklyn, NY 11216
Commercial Sale, Brooklyn, NY
Property Size11,250 SF
Lot Size0.09 Acres
Price / SF$644.44
Days on Market573
Property Features for 405 Gates Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Security features
Security System
Subdivision
Bedford-Stuyvesant
Lot features
Corner Lot
View
City
Standard status
Active
Lot size
0.09 Acres
Taxes and HOA fees
Tax Annual Amount
82281
Amenities
brand-new passenger elevator
multiple restrooms on each floor
new electric AC/Heating system
separate gas and electric meters
supplementary gas space heaters
provisions for ventilation
state-of-the-art security gates
ADA compliant
28-foot vaulted ceilings
oversized windows
high-quality ceramic tile
Building Details
Year built
1931
Floors in Building
3
Building materials
Brick
Listing Agency:
CAPLINE CONSOLIDATED LLC
Listed By:
Robert Shiryak · License #NY10491213394
(347) 908-7623
Added: Feb 27, 2025
Changed: Sep 12
Last Checked: Sep 23 at 3:06AM
MLS# 11440801
Copyright © 2026 My State MLS. 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 historic brick office building, constructed in 1931, has been renovated and extends across three floors with a substantial basement. Interior features include 28-foot vaulted ceilings, oversized windows, ceramic tile, multiple restrooms on each floor, and two stairwells. The property is ADA compliant and includes a new passenger elevator, electric AC/heating, separate gas and electric meters for each space, supplemental gas heaters, ventilation provisions, and security gates.
Approximately 130 feet of wrap-around frontage gives the building a substantial street presence at 405 Gates Avenue in Brooklyn. The property is near the Bedford-Nostrand Avenue subway station, Brooklyn Botanic Garden, Brooklyn Children's Museum, parks, educational institutions, and fitness centers. Its configuration is identified as suitable for medical office, urgent care, daycare or senior care, fitness, spa, restaurant, retail, and educational uses.
Approximately 130 feet of wrap-around frontage gives the building a substantial street presence at 405 Gates Avenue in Brooklyn. The property is near the Bedford-Nostrand Avenue subway station, Brooklyn Botanic Garden, Brooklyn Children's Museum, parks, educational institutions, and fitness centers. Its configuration is identified as suitable for medical office, urgent care, daycare or senior care, fitness, spa, restaurant, retail, and educational uses.
Key Highlights
- Approximately 130 feet of wrap‑around frontage
- Three floors plus a substantial basement
- 28‑foot vaulted ceilings and oversized windows
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
$280,665
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
3.87%
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%
$5,613,300
$5.6M
Cap Rate 7%
$4,009,500
$4.0M
Cap Rate 9%
$3,118,500
$3.1M
Market Conditions
NOI Build-Up for 11,250 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
$486.0K $43.20/SF
− Vacancy
−$111.8K −$9.94/SF
EGI
$374.2K $33.26/SF
− OpEx
−$93.6K −$8.32/SF
NOI
$280.7K $24.95/SF
Area
Brooklyn, NY
Vacancy
23.00%
Lease Rate
$43.20 /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%
$5,613,300
Cap Rate 7%
$4,009,500
Cap Rate 9%
$3,118,500
Alternative Uses
Best Use
Office B
$4.01M
$3.51M – $4.68M
NOI $280,665 @ 7.0% cap · market cap 3.87%
Second Best
Healthcare Medical
$3.73M
$3.26M – $4.35M
NOI $260,820 @ 7.0% cap · market cap 3.60%
Theoretical Best
Specialty Retail
$9.32M
$8.15M – $10.87M
NOI $652,050 @ 7.0% cap · market cap 8.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
28 ft
Clear height
Location Intelligence
Trade Area within ½ mile
5,908
Businesses Nearby
Explore this area
Business Placement
Demographics for 11216, NY
61,251
Population
28,825
Households
2.1
Avg Household Size
34
Median Age
56%
College-Educated
91%
High-School Grad
1.0 sq mi
ZIP Area
61,251
Density / Sq Mi
$95,000
Median Household Income
$61,389
Median Earnings
$2,180
Median Rent
$1,398,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Renovated commercial property with ADA access, passenger elevator, multiple restrooms, and flexible space for varied professional uses.
Where is this office building located?
The property is located at 405 Gates Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $7,250,000.
What are key features of this property?
This property features: Approximately 130 feet of wrap‑around frontage; Three floors plus a substantial basement; 28‑foot vaulted ceilings and oversized windows
