Creative Loft Space with Freight
For Sale
Contact for pricing
246 W 38th St, New York, NY 10018
Attended lobby and two recently renovated passenger elevators, with a separate freight entrance and elevator.
Property Size8,803 SF
Price / SF$511.19
Days on Market650
Property Features for 246 W 38th St
General Information
Standard status
Active
Size
8,803 SF
Elevators
Yes
Property subtype
OFFICE
Additional Details
Public Transit
Yes
Amenities
attended lobby
separate freight entrance
Listing Agency:
Rudder Property Group
(212) 966-3611
Listed By:
Michael Rudder · License #10491201687
(646) 483-2203
Source:
Moodyscre
Added: Dec 2, 2024
Changed: Sep 11
Last Checked: Sep 13 at 9:49AM
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 Rudder Property Group
Investment Insights
Based on property information with market context.
Creative loft space in the heart of the Penn Plaza submarket, offered for sale with the option to deliver the floor vacant or with a tenant in place. The property is described as having very low maintenance charges and includes an attended lobby.
Two recently renovated passenger elevators serve the space, and the building provides a separate freight entrance and elevator for efficient move-ins and deliveries. The location is close to Hudson Yards, Penn Station, Grand Central, and Port Authority, with nearly every subway line and the PATH train nearby.
The space totals 8,803 square feet and is positioned for creative and office-compatible uses that benefit from strong building amenities and convenient mass-transit access.
Two recently renovated passenger elevators serve the space, and the building provides a separate freight entrance and elevator for efficient move-ins and deliveries. The location is close to Hudson Yards, Penn Station, Grand Central, and Port Authority, with nearly every subway line and the PATH train nearby.
The space totals 8,803 square feet and is positioned for creative and office-compatible uses that benefit from strong building amenities and convenient mass-transit access.
Key Highlights
- 8,803 square feet creative loft floor
- Attended lobby service
- Two recently renovated passenger elevators
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
$275,646
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
6.13%
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%
$5,512,920
$5.5M
Cap Rate 7%
$3,937,800
$3.9M
Cap Rate 9%
$3,062,733
$3.1M
Market Conditions
NOI Build-Up for 8,803 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
$453.2K $51.48/SF
− Vacancy
−$85.7K −$9.73/SF
EGI
$367.5K $41.75/SF
− OpEx
−$91.9K −$10.44/SF
NOI
$275.6K $31.31/SF
Area
New York, NY
Vacancy
18.90%
Lease Rate
$51.48 /SF/Yr
Expense Ratio
25.00%
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%
$5,512,920
Cap Rate 7%
$3,937,800
Cap Rate 9%
$3,062,733
Alternative Uses
Best Use
Office B
$3.94M
$3.45M – $4.59M
NOI $275,646 @ 7.0% cap · market cap 6.13%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$21.91M
$19.17M – $25.56M
NOI $1,533,835 @ 7.0% cap · market cap 34.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
81,836
Businesses Nearby
Explore this area
Business Placement
Demographics for 10018, NY
11,145
Population
5,678
Households
2
Avg Household Size
35
Median Age
75%
College-Educated
92%
High-School Grad
0.3 sq mi
ZIP Area
37,150
Density / Sq Mi
$133,042
Median Household Income
$103,655
Median Earnings
$3,501
Median Rent
$947,100
Median Home Value
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Market
Vacancy Rate% for Office in Northeast region
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Frequently Asked Questions
What type of property is this?
Creative space - Attended lobby and two recently renovated passenger elevators, with a separate freight entrance and elevator.
Where is this creative space located?
The property is located at 246 W 38th St New York, 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: 8,803 square feet creative loft floor; Attended lobby service; Two recently renovated passenger elevators
