Renovated Brooklyn Commercial
For Sale
Contact for pricing
405 Gates Avenue, Brooklyn, NY 11216
Meticulously renovated commercial building with historic character and modern amenities.
Property Size11,250 SF
Price / SF$644.44
Days on Market540
Property Features for 405 Gates Avenue
General Information
Standard status
Active
Size
11,250 SF
Property subtype
Office
Zoning
R6A, C2-4
Investment Type
Owner/User
Building Details
Year Built
1931
Year Renovated
2024
Stories
3
Listing Agency:
Capline Consolidated
(347) 908-7623
Listed By:
Robert Shiryak · License #NY10491213394
Source:
Crexi
Added: Feb 27, 2025
Changed: Aug 8
Last Checked: Aug 8 at 3:11PM
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 Capline Consolidated
Investment Insights
Based on property information with market context.
This meticulously renovated building offers approximately 11,250 square feet of versatile space across three floors, complemented by a substantial basement. The property is positioned for various commercial ventures and suits an owner-user seeking a prominent presence in a thriving community. The building blends original architectural details with contemporary upgrades, including 28-foot vaulted ceilings, oversized windows, and high-quality ceramic tile. It is ADA compliant and features a new passenger elevator, multiple restrooms on each floor, and two stairwells. The property is equipped with a new electric AC/Heating system, separate gas and electric meters for each space, supplementary gas space heaters on each floor, and provisions for ventilation. It has approximately 130 feet of wrap-around frontage with state-of-the-art security gates. Situated within an Opportunity Zone, the property offers tax advantages and potential for property value appreciation. Expansion is possible via a bundle deal with the adjacent development site at 403 Gates Avenue, Brooklyn, NY 11216 (1,875 SF with 5,625 BSF), available separately.
Key Highlights
- Approximately 11,250 square feet of versatile space across three floors, plus a substantial basement.
- Prime location for an owner‑user.
- Historic character with 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
—
—
no second resolved use
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
Property Profile
Current Use
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
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Meticulously renovated commercial building with historic character and modern amenities.
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 11,250 square feet of versatile space across three floors, plus a substantial basement.; Prime location for an owner‑user.; Historic character with **28‑foot vaulted ceilings and oversized windows**.
