Sunset Park Four-Unit
For Sale
$1,399,990
Pending
823 40th St, Brooklyn, NY 11232
Four-unit rowhouse in Sunset Park, close to amenities.
Property Size3,444 SF
Days on Market108
Property Features for 823 40th St
General Information
Standard status
Pending
Size
3,444 SF
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$12,597
Building Details
Building Size
3,444 SF
Year Built
1931
Units
4
Listing Agency:
Island Advantage Realty, LLC
(631) 351-6000
Listed By:
Todd A. Yovino · License #49YO0956714
(631) 351-6000
Source:
Elliman
Added: May 12
Changed: Aug 8
Last Checked: Jul 30 at 9:02AM
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 Island Advantage Realty, LLC
Investment Insights
Based on property information with market context.
This four-unit rowhouse is located in the Sunset Park neighborhood. The property features a nicely enclosed front yard and is positioned near schools, parks, transportation options, stores, and eateries. The location has a walk score of 98, indicating it is a 'Walker's Paradise'. The bike score is 79, classifying it as 'Very Bikeable'. The transit score is 100, designating it as a 'Rider's Paradise'. The property offers exceptional potential and is situated among various area conveniences.
Key Highlights
- Unbeatable Transportation: Transit Score of 100 (Rider's Paradise).
- Walker's Paradise: Walk Score of 98.
- Prime Location: In the heart of Sunset Park, close to schools, parks, stores, and eateries.
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
$120,615
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
8.62%
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%
$2,412,300
$2.4M
Cap Rate 7%
$1,723,071
$1.7M
Cap Rate 9%
$1,340,167
$1.3M
Market Conditions
NOI Build-Up for 3,444 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
$175.6K $51.00/SF
− Vacancy
−$3.3K −$0.97/SF
EGI
$172.3K $50.03/SF
− OpEx
−$51.7K −$15.01/SF
NOI
$120.6K $35.02/SF
Area
Brooklyn, NY
Vacancy
1.90%
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%
$2,412,300
Cap Rate 7%
$1,723,071
Cap Rate 9%
$1,340,167
Alternative Uses
Best Use
Multifamily LT 5
$1.72M
$1.51M – $2.01M
NOI $120,615 @ 7.0% cap · market cap 8.62%
Second Best
Apartment 5plus
$1.50M
$1.31M – $1.75M
NOI $105,142 @ 7.0% cap · market cap 7.51%
Theoretical Best
Specialty Retail
$2.85M
$2.50M – $3.33M
NOI $199,614 @ 7.0% cap · market cap 14.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,588
Businesses Nearby
Explore this area
Business Placement
Demographics for 11232, NY
30,181
Population
10,004
Households
3
Avg Household Size
35
Median Age
36%
College-Educated
69%
High-School Grad
1.2 sq mi
ZIP Area
25,151
Density / Sq Mi
$87,517
Median Household Income
$45,983
Median Earnings
$1,972
Median Rent
$782,500
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?
Quadplex - Four-unit rowhouse in Sunset Park, close to amenities.
Where is this quadplex located?
The property is located at 823 40th St Brooklyn, NY.
What is the asking price?
The asking price for this property is $1,399,990.
What are key features of this property?
This property features: Unbeatable Transportation: Transit Score of 100 (Rider's Paradise).; Walker's Paradise: Walk Score of 98.; Prime Location: In the heart of Sunset Park, close to schools, parks, stores, and eateries.
