Lower East Side Multifamily
For Sale
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125 Madison Street, New York, NY 10002
16-unit building in the Lower East Side, spanning 8,675 SF.
Property Size8,675 SF
Lot Size0.06 Acres
Price / SF$345.82
Days on Market102
Property Features for 125 Madison Street
General Information
Standard status
Active
Size
8,675 SF
Lot size
0.06 Acres
Property subtype
Multifamily
Zoning
R7-2
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$201,000
Building Details
Year Built
1900
Buildings
1
Stories
5
Units
16
Tenancy
Multi
Listing Agency:
Marcus & Millichap - NYM Group
Listed By:
Joe Koicim · License #NY 10301208718
Source:
Crexi
Added: May 20
Changed: Aug 28
Last Checked: Aug 26 at 1:26PM
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 Marcus & Millichap - NYM Group
Investment Insights
Based on property information with market context.
Located in the Lower East Side, 125 Madison Street is a multifamily property featuring 16 units. The building, situated between Market Street and Pike Street, has dimensions of 25' x 86' and is positioned on a 25' x 100' lot (Block: 275, Lot: 1), encompassing approximately 8,675 square feet. The property is zoned R7-2.
Key Highlights
- Prime Lower East Side location on a pristine block
- Substantial size: 16 units within approximately 8,675 square feet
- Favorable dimensions: 25' x 86' building on a 25' x 100' lot
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
$272,274
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
9.08%
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%
$5,445,480
$5.4M
Cap Rate 7%
$3,889,629
$3.9M
Cap Rate 9%
$3,025,267
$3.0M
Market Conditions
NOI Build-Up for 8,675 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
$519.5K $59.88/SF
− Vacancy
−$24.4K −$2.81/SF
EGI
$495.0K $57.07/SF
− OpEx
−$222.8K −$25.68/SF
NOI
$272.3K $31.39/SF
Area
ZIP 10002
Vacancy
4.70%
Lease Rate
$59.88 /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%
$5,445,480
Cap Rate 7%
$3,889,629
Cap Rate 9%
$3,025,267
Alternative Uses
Best Use
Apartment 5plus
$3.89M
$3.40M – $4.54M
NOI $272,274 @ 7.0% cap · market cap 9.08%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$21.59M
$18.89M – $25.19M
NOI $1,511,532 @ 7.0% cap · market cap 50.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
16,930
Businesses Nearby
Explore this area
Business Placement
Demographics for 10002, NY
82,155
Population
39,646
Households
2.1
Avg Household Size
41
Median Age
39%
College-Educated
71%
High-School Grad
0.8 sq mi
ZIP Area
102,694
Density / Sq Mi
$46,525
Median Household Income
$51,425
Median Earnings
$1,207
Median Rent
$808,500
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?
Apartment building - 16-unit building in the Lower East Side, spanning 8,675 SF.
Where is this apartment building located?
The property is located at 125 Madison Street New York, NY.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Prime Lower East Side location on a pristine block; Substantial size: 16 units within approximately 8,675 square feet; Favorable dimensions: 25' x 86' building on a 25' x 100' lot
