Brooklyn Mixed-Use Building For
For Sale
Contact for pricing
1397 Flatbush Ave, Brooklyn, NY
Turn-key investment property with retail and residential income.
Property Size2,280 SF
Lot Size0.02 Acres
Price / SF$537.28
Days on Market407
Property Features for 1397 Flatbush Ave
General Information
Standard status
Active
Size
2,280 SF
Lot size
0.02 Acres
Property subtype
RETAIL
Listing Agency:
RIPCO Real Estate - Brooklyn
(718) 233-6565
Listed By:
Alex Svetlakou · License #10401242416
(646) 827-9968
Source:
Moodyscre
Added: Jul 31, 2025
Changed: Sep 8
Last Checked: Sep 10 at 8:03AM
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 RIPCO Real Estate - Brooklyn
Investment Insights
Based on property information with market context.
This is a three-story, 2,280 square foot masonry mixed-use building situated on a single tax lot. The ground floor retail space is leased to a hair salon until April 2035. The two upper free-market apartments feature two-bedroom layouts and are leased for $2,842 per month and $2,500 per month, respectively. The property currently generates over $103,000 gross annually and has a favorable Tax Class 1, which limits future tax increases. Zoned R7A with a commercial overlay, the property offers additional air rights that may be used to add a floor in the future. It is located on one of Brooklyn’s busiest retail corridors, within four blocks of Brooklyn College and near numerous stores, restaurants, and other conveniences. Situated between the Newkirk Av 2, 5 Station and the Newkirk Plaza B, Q Station, the property provides convenient connectivity across Brooklyn and to other boroughs. This renovated, turn-key investment asset is located on a busy corridor with high pedestrian foot traffic in a rapidly evolving market.
Key Highlights
- High‑traffic location on a busy Brooklyn retail corridor near Brooklyn College and multiple transportation options (2, 5, B, Q trains).
- Turn‑key investment property generating over $103K gross annually.
- Favorable Tax Class 1 limits future tax increases.
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
$109,336
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
8.93%
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%
$2,186,720
$2.2M
Cap Rate 7%
$1,561,943
$1.6M
Cap Rate 9%
$1,214,844
$1.2M
Market Conditions
NOI Build-Up for 2,280 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
$177.3K $77.76/SF
− Vacancy
−$21.1K −$9.25/SF
EGI
$156.2K $68.51/SF
− OpEx
−$46.9K −$20.55/SF
NOI
$109.3K $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%
$2,186,720
Cap Rate 7%
$1,561,943
Cap Rate 9%
$1,214,844
Alternative Uses
Best Use
Retail
$1.56M
$1.37M – $1.82M
NOI $109,336 @ 7.0% cap · market cap 8.93%
Second Best
Mixed Use
$1.18M
$1.03M – $1.38M
NOI $82,764 @ 7.0% cap · market cap 6.76%
Theoretical Best
Specialty Retail
$1.89M
$1.65M – $2.20M
NOI $132,149 @ 7.0% cap · market cap 10.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,945
Businesses Nearby
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Business Placement
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Turn-key investment property with retail and residential income.
Where is this mixed-use property located?
The property is located at 1397 Flatbush Ave Brooklyn, NY.
What is the asking price?
The asking price for this property is $1,225,000.
What are key features of this property?
This property features: High‑traffic location on a busy Brooklyn retail corridor near Brooklyn College and multiple transportation options (2, 5, B, Q trains).; Turn‑key investment property generating over $103K gross annually.; Favorable Tax Class 1 limits future tax increases.
