Mixed-Use Brick Building with
For Sale
$1,800,000
1023 McDonald Ave, Brooklyn, NY 11230
Mixed-use brick property with three residential apartments and one commercial storefront, with separate utility metering for tenants.
Property Size1,873 SF
Days on Market21
Property Features for 1023 McDonald Ave
General Information
Standard status
Active
Size
1,873 SF
Property subtype
Investment
Zoning
M1-1
Additional Details
Highway Access
Yes
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$3,090
Building Details
Building Size
1,873 SF
Year Built
1920
Units
4
Construction
brick
Tenancy
Multi
Listing Agency:
(718) 930-5653
Listed By:
Olivia M. White
(718) 930-5653
Source:
Elliman
Added: Jul 25
Changed: Aug 13
Last Checked: Aug 13 at 11:25AM
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 Olivia M. White
Investment Insights
Based on property information with market context.
This well-maintained mixed-use brick building includes three residential apartments and one commercial storefront. The residential units are currently rented at market rates, and one apartment is scheduled to be delivered vacant at closing. Tenants pay their own utilities with four separate gas meters and four separate electric meters. The utility room is reported to be in excellent condition. The property also includes roof protection with a 30-year metal roofing warranty.
The building is located in Gravesend within the M1-1 zoning district. Public remarks cite convenient access to the F train, local shopping and dining, and proximity to Coney Island and major highways.
For additional lease-up flexibility, the seller has indicated one unit will be delivered vacant at closing, while the other three residential units remain occupied at market rates.
The building is located in Gravesend within the M1-1 zoning district. Public remarks cite convenient access to the F train, local shopping and dining, and proximity to Coney Island and major highways.
For additional lease-up flexibility, the seller has indicated one unit will be delivered vacant at closing, while the other three residential units remain occupied at market rates.
Key Highlights
- Mixed‑use brick building (built 1920) with 3 residential apartments and 1 commercial storefront
- M1‑1 zoning district in Gravesend, Brooklyn
- All three residential units are rented at market rates; one unit scheduled vacant at closing
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
$89,819
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
4.99%
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%
$1,796,380
$1.8M
Cap Rate 7%
$1,283,129
$1.3M
Cap Rate 9%
$997,989
$998.0K
Market Conditions
NOI Build-Up for 1,873 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
$145.6K $77.76/SF
− Vacancy
−$17.3K −$9.25/SF
EGI
$128.3K $68.51/SF
− OpEx
−$38.5K −$20.55/SF
NOI
$89.8K $47.95/SF
Area
Brooklyn, NY
Vacancy
11.90%
Lease Rate
$77.76 /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%
$1,796,380
Cap Rate 7%
$1,283,129
Cap Rate 9%
$997,989
Alternative Uses
Best Use
Retail
$1.28M
$1.12M – $1.50M
NOI $89,819 @ 7.0% cap · market cap 4.99%
Second Best
Multifamily LT 5
$937.1K
$820.0K – $1.09M
NOI $65,596 @ 7.0% cap · market cap 3.64%
Theoretical Best
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,559 @ 7.0% cap · market cap 6.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,962
Businesses Nearby
Explore this area
Business Placement
Demographics for 11230, NY
91,391
Population
34,269
Households
2.7
Avg Household Size
35
Median Age
44%
College-Educated
82%
High-School Grad
1.8 sq mi
ZIP Area
50,773
Density / Sq Mi
$69,522
Median Household Income
$43,135
Median Earnings
$1,734
Median Rent
$863,400
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?
Triplex - Mixed-use brick property with three residential apartments and one commercial storefront, with separate utility metering for tenants.
Where is this triplex located?
The property is located at 1023 McDonald Ave Brooklyn, NY.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Mixed‑use brick building (built 1920) with 3 residential apartments and 1 commercial storefront; M1‑1 zoning district in Gravesend, Brooklyn; All three residential units are rented at market rates; one unit scheduled vacant at closing
