Four-Story Mixed-Use
New
For Sale
$6,750,000
126 Pearl St, New York, NY 10005
An established cigar club occupies two floors, with vacant residential space on the other levels.
Property Size6,800 SF
Price / SF$992.65
Days on Market4
Property Features for 126 Pearl St
General Information
Standard status
Active
Size
6,800 SF
Property subtype
Mixed-Use
Occupancy
50%
Additional Details
Anchor Co-Tenants
Rex Cigar Club
Multifamily Units
2
Amenities
No Historical Rent Regulation
Home to Barclays Rex Cigar Club, Operating Since 1910
User Plus Income Potential or Delivered Vacant
Building Details
Building Size
6,800 SF
Buildings
1
Stories
4
Units
1
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Manhattan
Listed By:
John Stewart · License #License(s): NY: 10311203263, NY: 10301205822
(212) 430-5152
Source:
Marcusmillichap
Added: Oct 2
Changed: Oct 3
Last Checked: Oct 4 at 6:18AM
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 - Manhattan
Investment Insights
Based on property information with market context.
This 6,800-square-foot mixed-use building spans four floors and measures 26 feet wide. Rex Cigar Club occupies two floors and has operated at the property since 1910. The other two floors contain vacant free-market residential units, creating a combination of an operating commercial tenancy and unoccupied residential space.
The property is at 126 Pearl Street in Manhattan’s Financial District. It also holds an indoor smoking license. The existing configuration includes both commercial and residential space within one building.
The property is at 126 Pearl Street in Manhattan’s Financial District. It also holds an indoor smoking license. The existing configuration includes both commercial and residential space within one building.
Key Highlights
- Approximately 6,800 square feet across four floors
- 26‑foot‑wide building at 126 Pearl Street in Manhattan’s Financial District
- Rex Cigar Club has operated at the property since 1910 and occupies two 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
$216,750
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
3.21%
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%
$4,335,000
$4.3M
Cap Rate 7%
$3,096,429
$3.1M
Cap Rate 9%
$2,408,333
$2.4M
Market Conditions
NOI Build-Up for 6,800 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
$408.0K $60.00/SF
− Vacancy
−$61.2K −$9.00/SF
EGI
$346.8K $51.00/SF
− OpEx
−$130.1K −$19.13/SF
NOI
$216.8K $31.88/SF
Area
New York, NY
Vacancy
15.00%
Lease Rate
$60.00 /SF/Yr
Expense Ratio
37.50%
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%
$4,335,000
Cap Rate 7%
$3,096,429
Cap Rate 9%
$2,408,333
Alternative Uses
Best Use
Retail
$13.67M
$11.96M – $15.95M
NOI $956,927 @ 7.0% cap · market cap 14.18%
Second Best
Mixed Use
$3.10M
$2.71M – $3.61M
NOI $216,750 @ 7.0% cap · market cap 3.21%
Theoretical Best
Specialty Retail
$16.93M
$14.81M – $19.75M
NOI $1,184,832 @ 7.0% cap · market cap 17.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
27,774
Businesses Nearby
8k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 66%
Hotels & Casinos 34%
Playa Bowls
Dining
5,312 visits/mo
0.3 miles
33 Seaport Hotel New York
Hotels & Casinos
2,769 visits/mo
0.5 miles
Demographics for 10005, NY
10,639
Population
6,495
Households
1.6
Avg Household Size
31
Median Age
84%
College-Educated
97%
High-School Grad
0.1 sq mi
ZIP Area
106,390
Density / Sq Mi
$211,810
Median Household Income
$133,727
Median Earnings
$3,501
Median Rent
$1,387,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Northeast region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - An established cigar club occupies two floors, with vacant residential space on the other levels.
Where is this mixed-use property located?
The property is located at 126 Pearl St New York, NY.
What is the asking price?
The asking price for this property is $6,750,000.
What are key features of this property?
This property features: Approximately 6,800 square feet across four floors; 26‑foot‑wide building at 126 Pearl Street in Manhattan’s Financial District; Rex Cigar Club has operated at the property since 1910 and occupies two floors
