Meticulously Reimagined Two-Family
For Sale
$2,500,000
Pending
1989 Madison Ave, New York, NY 10035
Sophisticated design, income potential, and flexible living in Harlem.
Property Size4,484 SF
Days on Market165
Property Features for 1989 Madison Ave
General Information
Standard status
Pending
Size
4,484 SF
Property subtype
Multi Family
Taxes and HOA fees
Annual Taxes
$31,764
Building Details
Building Size
4,484 SF
Year Built
1980
Stories
3
Units
2
Listing Agency:
Compass
Listed By:
Joshua M Doyle
(917) 279-4969
Source:
Elliman
Added: Apr 13
Changed: Sep 15
Last Checked: Sep 24 at 12:18PM
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 Compass
Investment Insights
Based on property information with market context.
This meticulously reimagined 19-foot-wide two-family townhouse offers sophisticated design, income potential, and flexible living. Delivered vacant, the home allows for use as a two-family residence or conversion to a single-family home. Historically, the garden duplex generated $6,995 per month in rental income, and the top duplex is estimated to rent for $8,000 per month. The interiors showcase hand-stenciled walls, original tin ceilings, exposed brick, wood-burning fireplaces, soaring ceilings, and herringbone floors. Central A/C and washers and dryers are included in both units. Unit 1 is a 2 flex 3-bedroom, 2-bath duplex with 10'9" ceilings, a working wood-burning fireplace, a private balcony off the primary bedroom, and access to the private patio. The kitchen features custom cabinetry, marble countertops, double ovens, and stainless steel appliances. The primary bathroom has marble finishes and double sinks, and the primary bedroom includes a walk-in closet with custom built-ins. This unit also provides access to the basement, which includes three storage units, a washer and dryer, and an open area. Unit 2 is a 3 flex 4-bedroom, 2-bath upper duplex with 10-foot high original tin ceilings, original fireplaces, oversized windows, skylights, and herringbone floors. The open kitchen features custom cabinetry with textured wire glass doors, marble countertops, and a Bertazzoni professional range. The primary bedroom offers garden views and an oversized walk-in closet with custom built-ins. The primary bathroom features a deep soaking tub and a vintage-style clawfoot double sink. The location provides convenient access to nearby Whole Foods, Trader Joe’s, and Target. The property is situated near the 2/3 and 4/5/6 subway lines and Metro-North.
Key Highlights
- Flexible Living: Easily converts from a two‑family townhouse to a single‑family residence.
- Income Potential: Historically high rental income from both units ($6,995 and $8,000 per month) to offset costs.
- Designer Interiors: Showcased in Swedish Elle Décor, featuring a 'Scandinavian farmhouse' aesthetic with hand‑stenciled walls, original tin ceilings, exposed brick, and herringbone floors.
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
$151,755
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
6.07%
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%
$3,035,100
$3.0M
Cap Rate 7%
$2,167,929
$2.2M
Cap Rate 9%
$1,686,167
$1.7M
Market Conditions
NOI Build-Up for 4,484 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
$228.7K $51.00/SF
− Vacancy
−$11.9K −$2.65/SF
EGI
$216.8K $48.35/SF
− OpEx
−$65.0K −$14.50/SF
NOI
$151.8K $33.84/SF
Area
New York, NY
Vacancy
5.20%
Lease Rate
$51.00 /SF/Yr
Expense Ratio
30.00%
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%
$3,035,100
Cap Rate 7%
$2,167,929
Cap Rate 9%
$1,686,167
Alternative Uses
Best Use
Multifamily LT 5
$2.17M
$1.90M – $2.53M
NOI $151,755 @ 7.0% cap · market cap 6.07%
Second Best
Apartment 5plus
$2.00M
$1.75M – $2.34M
NOI $140,292 @ 7.0% cap · market cap 5.61%
Theoretical Best
Specialty Retail
$11.16M
$9.77M – $13.02M
NOI $781,292 @ 7.0% cap · market cap 31.25%
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
8,050
Businesses Nearby
Explore this area
Business Placement
Demographics for 10035, NY
35,980
Population
16,340
Households
2.2
Avg Household Size
38
Median Age
31%
College-Educated
76%
High-School Grad
1.4 sq mi
ZIP Area
25,700
Density / Sq Mi
$40,556
Median Household Income
$44,042
Median Earnings
$1,283
Median Rent
$663,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Duplex - Sophisticated design, income potential, and flexible living in Harlem.
Where is this duplex located?
The property is located at 1989 Madison Ave New York, NY.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Flexible Living: Easily converts from a two‑family townhouse to a single‑family residence.; Income Potential: Historically high rental income from both units ($6,995 and $8,000 per month) to offset costs.; Designer Interiors: Showcased in Swedish Elle Décor, featuring a 'Scandinavian farmhouse' aesthetic with hand‑stenciled walls, original tin ceilings, exposed brick, and herringbone floors.
