Apartment Building with Air
For Sale
$3,250,000
318 Covert Street, Brooklyn, NY 11237
Six-family brick property with period details, a walk-out basement, and access to the L line.
Property Size4,680 SF
Price / SF$694.44
Days on Market1238
Property Features for 318 Covert Street
General Information
Standard status
Active
Size
4,680 SF
Property subtype
Multi Family
Additional Details
Public Transit
Yes
Multifamily Units
6
Taxes and HOA fees
Annual Taxes
$14,607
Amenities
Walk-Out Access
Mid-Rise, Park, Public
25
No Common Walls
Square Feet
Walk Out Basement, Privacy
Public Maintained Road
No
Brick
Shared Driveway, None, On Street, Park, Near Public Transit, Private
Building Details
Year Built
1906
Buildings
1
Construction
brick
Listing Agency:
Coldwell Banker American Homes
(718) 206-1340
Listed By:
Moin Siddiqui · License #10401259946
(718) 206-1340
Source:
Compass
Added: Apr 13, 2023
Changed: Aug 30
Last Checked: Aug 31 at 10:26PM
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 Coldwell Banker American Homes
Investment Insights
Based on property information with market context.
Built in 1906, this six-family brick apartment building contains 4,680 square feet, 13 bedrooms, and 7 bathrooms. The property features spacious apartments with large windows, hardwood floors, and arched hallways, along with a walk-out basement and shared driveway access. Its pre-war construction and original architectural details provide a distinctive physical character.
The property is located at 318 Covert Street in Brooklyn’s Bushwick neighborhood, near the L line, schools, shopping, restaurants, and houses of worship. Additional development capacity includes 1,400 sq. ft. of air rights, and the zoning allows an additional floor to be added.
The property is located at 318 Covert Street in Brooklyn’s Bushwick neighborhood, near the L line, schools, shopping, restaurants, and houses of worship. Additional development capacity includes 1,400 sq. ft. of air rights, and the zoning allows an additional floor to be added.
Key Highlights
- Six‑family apartment building with 13 bedrooms and 7 bathrooms
- 4,680 square feet in a brick building constructed in 1906
- 1,400 sq. ft. of additional air rights
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
$142,876
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
4.40%
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%
$2,857,520
$2.9M
Cap Rate 7%
$2,041,086
$2.0M
Cap Rate 9%
$1,587,511
$1.6M
Market Conditions
NOI Build-Up for 4,680 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
$265.1K $56.64/SF
− Vacancy
−$5.3K −$1.13/SF
EGI
$259.8K $55.51/SF
− OpEx
−$116.9K −$24.98/SF
NOI
$142.9K $30.53/SF
Area
Brooklyn, NY
Vacancy
2.00%
Lease Rate
$56.64 /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%
$2,857,520
Cap Rate 7%
$2,041,086
Cap Rate 9%
$1,587,511
Alternative Uses
Best Use
Apartment 5plus
$2.04M
$1.79M – $2.38M
NOI $142,876 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.88M
$3.39M – $4.52M
NOI $271,253 @ 7.0% cap · market cap 8.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
3,794
Businesses Nearby
Explore this area
Business Placement
Demographics for 11237, NY
49,418
Population
18,801
Households
2.6
Avg Household Size
31
Median Age
41%
College-Educated
76%
High-School Grad
1.0 sq mi
ZIP Area
49,418
Density / Sq Mi
$82,570
Median Household Income
$43,421
Median Earnings
$2,109
Median Rent
$1,063,700
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 - Six-family brick property with period details, a walk-out basement, and access to the L line.
Where is this apartment building located?
The property is located at 318 Covert Street Brooklyn, NY.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: Six‑family apartment building with 13 bedrooms and 7 bathrooms; 4,680 square feet in a brick building constructed in 1906; 1,400 sq. ft. of additional air rights
