Industrial Building with Secured
For Sale
$4,000,000
685 3rd Ave, Brooklyn, NY 11232
The property combines enclosed commercial space with a secured outdoor lot and direct avenue frontage.
Property Size4,800 SF
Lot Size0.23 Acres
Price / SF$833.33
Days on Market10
Property Features for 685 3rd Ave
General Information
Standard status
Active
Size
4,800 SF
Lot size
0.23 Acres
Property subtype
Vacant-User
Zoning
M1-2D
Site & Location
Highway Access
Yes
Road Access
Yes
Fenced Yard
Yes
Outdoor Storage
Yes
Amenities
Rare combination of a 4,800 SF commercial building and 5,234 SF outdoor lot Zoned M1-2D
Over 100 feet of frontage along the 3rd Avenue commercial corridor in Greenwood Heights, Brooklyn
Excellent subway access, approximately a 5-minute walk to the Prospect Avenue R station, a 6-minute walk to the 25th Street R station, and a 12-minute walk to the 4th Avenue–9th Street F/G/R station
Immediate access to the BQE, Gowanus Expressway, and Prospect Expressway, providing convenient connectivity throughout Brooklyn, Manhattan, and the greater New York City region
Located near Industry City, Sunset Park, and Gowanus, where continued investment has strengthened the surrounding commercial and industrial market
Building Details
Building Size
4,800 SF
Year Built
1956
Buildings
1
Listed By:
Jesse Kay · License #License(s): NY: 10401266134
(718) 475-4321
Source:
Marcusmillichap
Added: Sep 18
Last Checked: Sep 26 at 3:32AM
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 Jesse Kay
Investment Insights
Based on property information with market context.
This 1956 industrial property includes a 4,800-square-foot commercial building on a 10,034-square-foot parcel. The site incorporates a 5,234-square-foot secured outdoor lot and more than 100 feet of frontage along 3rd Avenue, creating a combination of enclosed and exterior commercial space. The property is identified as M1-2D zoning and includes a substantial outdoor component.
Located at 685 3rd Avenue in Brooklyn’s Greenwood Heights neighborhood, the property is approximately a 5-minute walk from the Prospect Avenue R station and about a 6-minute walk from the 25th Street R station. The 4th Avenue–9th Street F/G/R station is approximately 12 minutes away on foot. Road connections include the BQE, Gowanus Expressway, and Prospect Expressway, with Industry City, Sunset Park, Gowanus, and Downtown Brooklyn nearby.
Located at 685 3rd Avenue in Brooklyn’s Greenwood Heights neighborhood, the property is approximately a 5-minute walk from the Prospect Avenue R station and about a 6-minute walk from the 25th Street R station. The 4th Avenue–9th Street F/G/R station is approximately 12 minutes away on foot. Road connections include the BQE, Gowanus Expressway, and Prospect Expressway, with Industry City, Sunset Park, Gowanus, and Downtown Brooklyn nearby.
Key Highlights
- 4,800‑square‑foot industrial building on a 10,034‑square‑foot parcel
- 5,234‑square‑foot secured outdoor lot
- Over 100 feet of frontage along 3rd Avenue
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
$115,315
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
2.88%
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%
$2,306,300
$2.3M
Cap Rate 7%
$1,647,357
$1.6M
Cap Rate 9%
$1,281,278
$1.3M
Market Conditions
NOI Build-Up for 4,800 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
$201.6K $42.00/SF
− Vacancy
−$24.2K −$5.04/SF
EGI
$177.4K $36.96/SF
− OpEx
−$62.1K −$12.94/SF
NOI
$115.3K $24.02/SF
Area
Brooklyn, NY
Vacancy
12.00%
Lease Rate
$42.00 /SF/Yr
Expense Ratio
35.00%
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%
$2,306,300
Cap Rate 7%
$1,647,357
Cap Rate 9%
$1,281,278
Alternative Uses
Best Use
Flex RnD
$1.65M
$1.44M – $1.92M
NOI $115,315 @ 7.0% cap · market cap 2.88%
Second Best
Industrial
$1.22M
$1.07M – $1.42M
NOI $85,393 @ 7.0% cap · market cap 2.13%
Theoretical Best
Specialty Retail
$3.97M
$3.48M – $4.64M
NOI $278,208 @ 7.0% cap · market cap 6.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
4,058
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in Northeast region
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Frequently Asked Questions
What type of property is this?
Industrial property - The property combines enclosed commercial space with a secured outdoor lot and direct avenue frontage.
Where is this industrial property located?
The property is located at 685 3rd Ave Brooklyn, NY.
What is the asking price?
The asking price for this property is $4,000,000.
What are key features of this property?
This property features: 4,800‑square‑foot industrial building on a 10,034‑square‑foot parcel; 5,234‑square‑foot secured outdoor lot; Over 100 feet of frontage along 3rd Avenue
