Bronx Multifamily Investment
For Sale
$2,600,000
253 E 206th St, Bronx, NY 10467
Free market, ten-unit building near Montefiore Hospital and Fordham University.
Property Size6,692 SF
Price / SF$388.52
Days on Market100
Property Features for 253 E 206th St
General Information
Standard status
Active
Size
6,692 SF
Property subtype
Multifamily
Amenities
253 East 206th Street, built in 2017, is a multifamily asset spanning 4 stories, comprises 10 units, and is approx. 6,692 SF.
100% Free Market | Tax Class Protected: 2B | Zoning: R7B
This building is just steps from Montefiore Hospital, Bronx Park, Fordham University, The New York Botanical Garden, and the Norwood Subway Station.
Building Details
Building Size
6,692 SF
Units
10
Listing Agency:
Marcus & Millichap - Manhattan
(212) 430-5136
Listed By:
Seth Glasser · License #License(s): NY: 10301209629
(212) 430-5136
Source:
Marcusmillichap
Added: May 16
Changed: Aug 23
Last Checked: Aug 23 at 11:37AM
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 Marcus & Millichap - Manhattan
Investment Insights
Based on property information with market context.
The property at 253 East 206th Street is a ten-unit walk-up building, completed in 2019 and operating without tax abatement. The unit mix comprises 3 studios, 5 one-bedroom apartments, and 2 two-bedroom apartments. As of the current listing, there are two vacant units. The building is classified as a tax class 2B asset, with tax liability capped at 8% annually or 30% over a five-year period. The average rent is $1,944 per apartment per month. Located in close proximity to Montefiore Hospital, Bronx Park, Fordham University, The New York Botanical Garden, and the Norwood Subway Station.
Key Highlights
- Significant rental upside potential due to current rents being 30% below market value.
- Prime location: Steps from Montefiore Hospital, Bronx Park, Fordham University, New York Botanical Garden, and Norwood Subway Station.
- New construction: Built in 2019 with a final certificate of occupancy issued in the same year.
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
$145,619
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
5.60%
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%
$2,912,380
$2.9M
Cap Rate 7%
$2,080,271
$2.1M
Cap Rate 9%
$1,617,989
$1.6M
Market Conditions
NOI Build-Up for 6,692 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
$281.1K $42.00/SF
− Vacancy
−$16.3K −$2.44/SF
EGI
$264.8K $39.56/SF
− OpEx
−$119.1K −$17.80/SF
NOI
$145.6K $21.76/SF
Area
ZIP 10467
Vacancy
5.80%
Lease Rate
$42.00 /SF/Yr
Expense Ratio
45.00%
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%
$2,912,380
Cap Rate 7%
$2,080,271
Cap Rate 9%
$1,617,989
Alternative Uses
Best Use
Apartment 5plus
$2.08M
$1.82M – $2.43M
NOI $145,619 @ 7.0% cap · market cap 5.60%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$4.64M
$4.06M – $5.41M
NOI $324,596 @ 7.0% cap · market cap 12.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,529
Businesses Nearby
Explore this area
Business Placement
Demographics for 10467, NY
103,660
Population
40,582
Households
2.6
Avg Household Size
36
Median Age
22%
College-Educated
75%
High-School Grad
2.3 sq mi
ZIP Area
45,070
Density / Sq Mi
$47,806
Median Household Income
$36,949
Median Earnings
$1,505
Median Rent
$425,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Free market, ten-unit building near Montefiore Hospital and Fordham University.
Where is this apartment building located?
The property is located at 253 E 206th St Bronx, NY.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Significant rental upside potential due to current rents being 30% below market value.; Prime location: Steps from Montefiore Hospital, Bronx Park, Fordham University, New York Botanical Garden, and Norwood Subway Station.; New construction: Built in 2019 with a final certificate of occupancy issued in the same year.
