Mixed-Use Property with Catering
For Sale
Contact for pricing
Pending
51 avenue u, Brooklyn, NY 11223
Existing catering-hall improvements support continued operations alongside residential and commercial redevelopment potential.
Property Size8,000 SF
Days on Market810
Property Features for 51 avenue u
General Information
Standard status
Pending
Size
8,000 SF
Property subtype
Office
Listing Agency:
GAMA GROUP LLC
Listed By:
Gabriel Lian
(718) 717-7727
Source:
Crexi
Added: Jun 16, 2024
Changed: Sep 2
Last Checked: Sep 1 at 8:42AM
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 GAMA GROUP LLC
Investment Insights
Based on property information with market context.
Located at 51 Avenue U in Brooklyn, this mixed-use property includes an existing catering hall with 8,000 square feet of interior space. The building dates to 1931 and has operated as a catering venue for decades, offering an established configuration for continued use.
The property occupies an 80-by-100-foot corner lot and carries both R5B and C2-3 zoning. R5B permits detached and semi-detached multifamily dwellings with a 1.35 FAR, along with three-story row houses. C2-3 zoning supports mixed-use development combining commercial and residential components.
The property occupies an 80-by-100-foot corner lot and carries both R5B and C2-3 zoning. R5B permits detached and semi-detached multifamily dwellings with a 1.35 FAR, along with three-story row houses. C2-3 zoning supports mixed-use development combining commercial and residential components.
Key Highlights
- 8,000 square feet of interior space
- Existing catering hall operating for decades
- 80‑by‑100‑foot corner lot
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
$290,400
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
6.45%
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%
$5,808,000
$5.8M
Cap Rate 7%
$4,148,571
$4.1M
Cap Rate 9%
$3,226,667
$3.2M
Market Conditions
NOI Build-Up for 8,000 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
$528.0K $66.00/SF
− Vacancy
−$63.4K −$7.92/SF
EGI
$464.6K $58.08/SF
− OpEx
−$174.2K −$21.78/SF
NOI
$290.4K $36.30/SF
Area
Brooklyn, NY
Vacancy
12.00%
Lease Rate
$66.00 /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%
$5,808,000
Cap Rate 7%
$4,148,571
Cap Rate 9%
$3,226,667
Alternative Uses
Best Use
Mixed Use
$4.15M
$3.63M – $4.84M
NOI $290,400 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.62M
$5.80M – $7.73M
NOI $463,680 @ 7.0% cap · market cap 10.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,334
Businesses Nearby
Explore this area
Business Placement
Demographics for 11223, NY
83,519
Population
28,857
Households
2.9
Avg Household Size
37
Median Age
34%
College-Educated
78%
High-School Grad
2.1 sq mi
ZIP Area
39,771
Density / Sq Mi
$63,950
Median Household Income
$40,592
Median Earnings
$1,653
Median Rent
$1,063,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing catering-hall improvements support continued operations alongside residential and commercial redevelopment potential.
Where is this mixed-use property located?
The property is located at 51 avenue u Brooklyn, NY.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 8,000 square feet of interior space; Existing catering hall operating for decades; 80‑by‑100‑foot corner lot
