Mixed-Use Property with Tax
For Sale
$4,607,000
8623 Flatlands Ave, Brooklyn, NY 11236
New construction mixed-use property with 421-a tax exemption.
Property Size13,497 SF
Days on Market124
Property Features for 8623 Flatlands Ave
General Information
Standard status
Active
Size
13,497 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$118,467
Building Details
Building Size
13,497 SF
Year Built
2022
Units
13
Listing Agency:
Legacy Estate Realty
(917) 635-3980
Listed By:
Elana Bernstein
(917) 635-3980
Source:
Elliman
Added: Apr 10
Changed: Aug 8
Last Checked: Aug 11 at 8:51AM
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 Legacy Estate Realty
Investment Insights
Based on property information with market context.
This mixed-use property is a newly constructed elevator building featuring 12 residential units and ground-floor retail space. The building includes 8 enclosed parking spaces and benefits from a 35-year 421-a tax exemption. Spanning four stories plus a cellar, the property incorporates a residential lobby, a dedicated parking garage, and accessory and bicycle storage. The second, third, and fourth floors accommodate the 12 residential units, enhanced by multiple private and shared rooftop terraces. Currently, the ground-floor retail space is occupied by a pawn shop. The property is located in a very walkable area with excellent transit and is bikeable.
Key Highlights
- Benefit from a 35‑year 421‑a tax exemption.
- Newly constructed elevator building, built in 2022.
- Mixed‑use property featuring 12 residential units and ground‑floor retail space.
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
$412,049
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
8.94%
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%
$8,240,980
$8.2M
Cap Rate 7%
$5,886,414
$5.9M
Cap Rate 9%
$4,578,322
$4.6M
Market Conditions
NOI Build-Up for 13,497 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
$764.5K $56.64/SF
− Vacancy
−$15.3K −$1.13/SF
EGI
$749.2K $55.51/SF
− OpEx
−$337.1K −$24.98/SF
NOI
$412.0K $30.53/SF
Area
Brooklyn, NY
Vacancy
2.00%
Lease Rate
$56.64 /SF/Yr
Expense Ratio
45.00%
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%
$8,240,980
Cap Rate 7%
$5,886,414
Cap Rate 9%
$4,578,322
Alternative Uses
Best Use
Retail
$9.25M
$8.09M – $10.79M
NOI $647,243 @ 7.0% cap · market cap 14.05%
Second Best
Mixed Use
$7.00M
$6.12M – $8.17M
NOI $489,941 @ 7.0% cap · market cap 10.63%
Theoretical Best
Specialty Retail
$11.18M
$9.78M – $13.04M
NOI $782,286 @ 7.0% cap · market cap 16.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,371
Businesses Nearby
Explore this area
Business Placement
Demographics for 11236, NY
100,687
Population
37,002
Households
2.7
Avg Household Size
40
Median Age
28%
College-Educated
88%
High-School Grad
3.6 sq mi
ZIP Area
27,969
Density / Sq Mi
$82,813
Median Household Income
$50,244
Median Earnings
$1,637
Median Rent
$710,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - New construction mixed-use property with 421-a tax exemption.
Where is this mixed-use property located?
The property is located at 8623 Flatlands Ave Brooklyn, NY.
What is the asking price?
The asking price for this property is $4,607,000.
What are key features of this property?
This property features: Benefit from a **35‑year 421‑a tax exemption**.; Newly constructed elevator building, built in 2022.; Mixed‑use property featuring 12 residential units and ground‑floor retail space.
