Mixed-Use Building in Active
For Sale
Contact for pricing
240 Avenue U, Brooklyn, NY 11223
Mixed-use building with vacant commercial space and residential income.
Property Size3,520 SF
Price / SF$596.31
Days on Market80
Property Features for 240 Avenue U
General Information
Standard status
Active
Size
3,520 SF
Property subtype
Retail, Office, Mixed Use
Zoning
R5, C1-3
Occupancy
50%
Building Details
Year Built
1931
Stories
2
Units
4
Tenancy
Multi
Listing Agency:
Commercial Acquisitions
(718) 517-8700
Listed By:
Arsen Atbashyan · License #NY 0000
Source:
Crexi
Added: May 26
Changed: Aug 8
Last Checked: Aug 11 at 11:01AM
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 Commercial Acquisitions
Investment Insights
Based on property information with market context.
The property at 240 Avenue U is a mixed-use building situated in a high-traffic retail area of Brooklyn. The building features a ground-floor commercial space of 1920 square feet, which will be delivered vacant. This presents an opportunity for an owner-user to occupy the space while also generating income from the residential units. The second floor, totaling 1600 square feet, includes two apartments. One is a 3-bedroom apartment at the rear, currently rented for $2,348 per month. The other is a 1-bedroom apartment at the front, rented for $1,800 per month. These apartments provide a consistent cash flow.
Key Highlights
- Vacant 1,920 SF ground‑floor commercial space ideal for owner‑user.
- Stable in‑place cash flow from two residential apartments.
- Located in a highly active Brooklyn retail corridor.
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
$168,800
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
8.04%
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%
$3,376,000
$3.4M
Cap Rate 7%
$2,411,429
$2.4M
Cap Rate 9%
$1,875,556
$1.9M
Market Conditions
NOI Build-Up for 3,520 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
$273.7K $77.76/SF
− Vacancy
−$32.6K −$9.25/SF
EGI
$241.1K $68.51/SF
− OpEx
−$72.3K −$20.55/SF
NOI
$168.8K $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%
$3,376,000
Cap Rate 7%
$2,411,429
Cap Rate 9%
$1,875,556
Alternative Uses
Best Use
Retail
$2.41M
$2.11M – $2.81M
NOI $168,800 @ 7.0% cap · market cap 8.04%
Second Best
Mixed Use
$1.83M
$1.60M – $2.13M
NOI $127,776 @ 7.0% cap · market cap 6.09%
Theoretical Best
Specialty Retail
$2.91M
$2.55M – $3.40M
NOI $204,019 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,120
Businesses Nearby
76k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 55%
Groceries 30%
Dining 10%
Electronics 5%
Petco
Shops & Services
23,136 visits/mo
0.4 miles
Super Foodtown
Groceries
19,340 visits/mo
0.5 miles
Sunoco
Shops & Services
15,934 visits/mo
0.4 miles
Dunkin' Donuts
Dining
5,859 visits/mo
0.5 miles
C-Town Supermarkets
Groceries
3,615 visits/mo
0.3 miles
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
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use building with vacant commercial space and residential income.
Where is this mixed-use property located?
The property is located at 240 Avenue U Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,099,000.
What are key features of this property?
This property features: Vacant 1,920 SF ground‑floor commercial space ideal for owner‑user.; Stable in‑place cash flow from two residential apartments.; Located in a highly active Brooklyn retail corridor.
