Commercial Building with High
For Sale
$2,290,000
2799 86th St, Brooklyn, NY 11223
Fully leased commercial building with five spaces and high net income.
Property Size4,260 SF
Lot Size0.05 Acres
Price / SF$537.56
Days on Market166
Property Features for 2799 86th St
General Information
Standard status
Active
Size
4,260 SF
Lot size
0.05 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$38,000
Building Details
Building Size
4,260 SF
Listing Agency:
Sun Realty New York Inc
(718) 650-5775
Listed By:
Dongyun Lin
(718) 650-5775
Source:
Elliman
Added: Mar 10
Changed: Aug 15
Last Checked: Aug 22 at 10:36AM
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 Sun Realty New York Inc
Investment Insights
Based on property information with market context.
This is a fully leased, two-story commercial building featuring five unique commercial spaces, each with high-ceiling basements. The building has a total area of 4,260 square feet, with dimensions of 38 feet by 52 feet, situated on a lot of the same size. The property is zoned C1-2/R5 and faces both 86th Street and West 8th Street. Its location offers proximity to multiple large supermarkets and prominent retail stores, including McDonald’s and Petco. Transportation is facilitated by nearby N and F train stations, as well as convenient access to freeway 278. The property generates a net income close to $165,000, representing a high return on investment. This property is suitable for owner self-use, 1031 exchange buyers, or investors seeking high returns and easy management with stable incomes.
Key Highlights
- High net income (close to $165k) and top investment returns
- Fully leased commercial building with 5 commercial retail spaces and long‑term tenants
- Excellent location facing both 86th St and West 8th St, close to supermarkets, retail stores (McDonald's, Petco), and transportation (N & F trains, Freeway 278)
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
$204,287
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
8.92%
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%
$4,085,740
$4.1M
Cap Rate 7%
$2,918,386
$2.9M
Cap Rate 9%
$2,269,856
$2.3M
Market Conditions
NOI Build-Up for 4,260 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
$331.3K $77.76/SF
− Vacancy
−$39.4K −$9.25/SF
EGI
$291.8K $68.51/SF
− OpEx
−$87.6K −$20.55/SF
NOI
$204.3K $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%
$4,085,740
Cap Rate 7%
$2,918,386
Cap Rate 9%
$2,269,856
Alternative Uses
Best Use
Retail
$2.92M
$2.55M – $3.40M
NOI $204,287 @ 7.0% cap · market cap 8.92%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.53M
$3.09M – $4.12M
NOI $246,910 @ 7.0% cap · market cap 10.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,760
Businesses Nearby
90k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Groceries 26%
Dining 9%
Electronics 4%
Petco
Shops & Services
23,136 visits/mo
0.3 miles
Super Foodtown
Groceries
19,340 visits/mo
0.5 miles
Sunoco
Shops & Services
15,934 visits/mo
0.4 miles
Chase Bank
Shops & Services
13,664 visits/mo
0.5 miles
Dunkin' Donuts
Dining
5,859 visits/mo
0.5 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?
Storefront property - Fully leased commercial building with five spaces and high net income.
Where is this storefront property located?
The property is located at 2799 86th St Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,290,000.
What are key features of this property?
This property features: High net income (close to $165k) and top investment returns; Fully leased commercial building with 5 commercial retail spaces and long‑term tenants; Excellent location facing both 86th St and West 8th St, close to supermarkets, retail stores (McDonald's, Petco), and transportation (N & F trains, Freeway 278)
