Grandfathered R5 Multifamily
For Sale
$999,999
538 Hendrix St, Brooklyn, NY 11207
Grandfathered R5 zoning allows 2.42 FAR for multifamily redevelopment with strong transit scores nearby.
Property Size2,394 SF
Days on Market55
Property Features for 538 Hendrix St
General Information
Standard status
Active
Size
2,394 SF
Property subtype
Investment
Zoning
R5
Taxes and HOA fees
Annual Taxes
$3,460
Building Details
Building Size
2,394 SF
Year Built
1901
Units
3
Listing Agency:
1st American One NYC LTD
(516) 376-9720
Listed By:
Marc Dori
(516) 376-9720
Source:
Elliman
Added: Jun 20
Changed: Aug 8
Last Checked: Aug 12 at 7:27AM
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 1st American One NYC LTD
Investment Insights
Based on property information with market context.
This for-sale multifamily property at 538 Hendrix St, Brooklyn, NY 11207 is being presented under R5 zoning with a grandfathered 2.42 FAR. The property is positioned as a development-minded residential income asset within the provided zoning parameters.
The surrounding transportation context is supported by the reported scores: a transitScore of 76, a walkScore of 59, and a bikeScore of 64. These metrics indicate established mobility options for residents and help inform how the site may function for tenant access and day-to-day commuting.
For buyers evaluating redevelopment or repositioning of a multifamily site, the key decision point here is the stated zoning framework and the grandfathered floor area ratio of 2.42. Prospective operators and investors can underwrite accordingly, using the provided zoning specifics as the basis for feasibility and planning. No additional unit count, building size, or current physical condition details are provided, so due diligence on those items should be completed as part of the next steps.
The surrounding transportation context is supported by the reported scores: a transitScore of 76, a walkScore of 59, and a bikeScore of 64. These metrics indicate established mobility options for residents and help inform how the site may function for tenant access and day-to-day commuting.
For buyers evaluating redevelopment or repositioning of a multifamily site, the key decision point here is the stated zoning framework and the grandfathered floor area ratio of 2.42. Prospective operators and investors can underwrite accordingly, using the provided zoning specifics as the basis for feasibility and planning. No additional unit count, building size, or current physical condition details are provided, so due diligence on those items should be completed as part of the next steps.
Key Highlights
- Year built: 1901
- Grandfathered R5 zoning allows 2.42 FAR for multifamily redevelopment
- TransitScore: 76 (excellent transit nearby)
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
$73,086
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
7.31%
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%
$1,461,720
$1.5M
Cap Rate 7%
$1,044,086
$1.0M
Cap Rate 9%
$812,067
$812.1K
Market Conditions
NOI Build-Up for 2,394 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
$135.6K $56.64/SF
− Vacancy
−$2.7K −$1.13/SF
EGI
$132.9K $55.51/SF
− OpEx
−$59.8K −$24.98/SF
NOI
$73.1K $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%
$1,461,720
Cap Rate 7%
$1,044,086
Cap Rate 9%
$812,067
Alternative Uses
Best Use
Apartment 5plus
$1.04M
$913.6K – $1.22M
NOI $73,086 @ 7.0% cap · market cap 7.31%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.98M
$1.73M – $2.31M
NOI $138,756 @ 7.0% cap · market cap 13.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,990
Businesses Nearby
Explore this area
Business Placement
Demographics for 11207, NY
100,330
Population
38,030
Households
2.6
Avg Household Size
35
Median Age
19%
College-Educated
81%
High-School Grad
2.7 sq mi
ZIP Area
37,159
Density / Sq Mi
$55,419
Median Household Income
$41,008
Median Earnings
$1,443
Median Rent
$657,400
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 - Grandfathered R5 zoning allows 2.42 FAR for multifamily redevelopment with strong transit scores nearby.
Where is this apartment building located?
The property is located at 538 Hendrix St Brooklyn, NY.
What is the asking price?
The asking price for this property is $999,999.
What are key features of this property?
This property features: Year built: 1901; Grandfathered R5 zoning allows 2.42 FAR for multifamily redevelopment; TransitScore: 76 (excellent transit nearby)
