Three-Story Mixed-Use
For Sale
$4,650,000
397 5th Avenue, Brooklyn, NY 11215
COMMERCIAL - Other - Brooklyn, NY
Property Size3,828 SF
Price / SF$1,214
Days on Market21
Property Features for 397 5th Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Bedrooms
8
Bathrooms
5
Full bathrooms
5
Rooms
Bedroom 4, Bedroom 6, Bathroom 5, Bedroom 8, Bedroom 2, Bathroom 4, Bedroom 3, Bathroom 3, Bathroom 2, Bedroom 7, Bedroom 1, Bathroom 1, Bedroom 5
Subdivision
Park Slope
High school district
000000
Standard status
Active
Size
3,828 SF
Building Details
Architectural style
Other
Listing Agency:
Compass
(646) 982-0353
Listed By:
Louis Esposito · License #10301207785
Added: Jul 24
Changed: Aug 12
Last Checked: Aug 13 at 3:06AM
MLS# 11902327
Copyright © 2026 My State MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This three-story mixed-use building is fully occupied and maintained in turnkey condition. The residential component consists of four two-bedroom apartments, each described as having desirable front and back layouts. The retail portion is currently leased for the next ten years, supporting an income-producing mixed-use setup without the need for immediate renovations or repairs.
Located in the retail corridor of 5th Avenue in Park Slope, Brooklyn, the property is positioned on a high foot-traffic section of the avenue, designed to support visibility and accessibility.
With a mix of apartments and leased retail, this property offers a straightforward way to acquire a maintained mixed-use asset in an active neighborhood retail setting.
Located in the retail corridor of 5th Avenue in Park Slope, Brooklyn, the property is positioned on a high foot-traffic section of the avenue, designed to support visibility and accessibility.
With a mix of apartments and leased retail, this property offers a straightforward way to acquire a maintained mixed-use asset in an active neighborhood retail setting.
Key Highlights
- Fully occupied three‑story mixed‑use building in turnkey condition
- 4 two‑bedroom apartments with front and back layouts
- Retail space leased for the next ten years
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
$183,570
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
3.95%
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%
$3,671,400
$3.7M
Cap Rate 7%
$2,622,429
$2.6M
Cap Rate 9%
$2,039,667
$2.0M
Market Conditions
NOI Build-Up for 3,828 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
$297.7K $77.76/SF
− Vacancy
−$35.4K −$9.25/SF
EGI
$262.2K $68.51/SF
− OpEx
−$78.7K −$20.55/SF
NOI
$183.6K $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%
$3,671,400
Cap Rate 7%
$2,622,429
Cap Rate 9%
$2,039,667
Alternative Uses
Best Use
Retail
$2.62M
$2.29M – $3.06M
NOI $183,570 @ 7.0% cap · market cap 3.95%
Second Best
Mixed Use
$1.99M
$1.74M – $2.32M
NOI $138,956 @ 7.0% cap · market cap 2.99%
Theoretical Best
Specialty Retail
$3.17M
$2.77M – $3.70M
NOI $221,871 @ 7.0% cap · market cap 4.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
8,369
Businesses Nearby
Explore this area
Business Placement
Demographics for 11215, NY
67,493
Population
32,197
Households
2.1
Avg Household Size
37
Median Age
80%
College-Educated
96%
High-School Grad
2.2 sq mi
ZIP Area
30,679
Density / Sq Mi
$180,773
Median Household Income
$99,151
Median Earnings
$2,803
Median Rent
$1,674,700
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?
Mixed-use property - Fully occupied three-story mixed-use building with four two-bedroom apartments and retail leased for ten years.
Where is this mixed-use property located?
The property is located at 397 5th Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $4,650,000.
What are key features of this property?
This property features: Fully occupied three‑story mixed‑use building in turnkey condition; 4 two‑bedroom apartments with front and back layouts; Retail space leased for the next ten years
