Renovated Mixed-Use
For Sale
$7,250,000
405 Gates Avenue, Brooklyn, NY 11216
COMMERCIAL - Brooklyn, NY
Property Size11,250 SF
Lot Size0.09 Acres
Price / SF$644.44
Days on Market540
Property Features for 405 Gates Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Security features
Security System
Subdivision
Bedford-Stuyvesant
Lot features
Corner Lot
View
City
Standard status
Active
Lot size
0.09 Acres
Taxes and HOA fees
Tax Annual Amount
82281
Amenities
28-foot vaulted ceilings
oversized windows
high-quality ceramic tile
ADA compliant
brand-new passenger elevator
multiple restrooms on each floor
two stairwells
new electric AC/Heating system
separate gas and electric meters for each space
supplementary gas space heaters on each floor
provisions for ventilation
state-of-the-art security gates
Building Details
Year built
1931
Floors in Building
3
Building materials
Brick
Listing Agency:
CAPLINE CONSOLIDATED LLC
Listed By:
Robert Shiryak · License #NY10491213394
Added: Feb 27, 2025
Changed: Aug 4
Last Checked: Aug 21 at 7:06PM
MLS# 11440801
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.
Built in 1931, this brick mixed-use building provides approximately 11,250 square feet over three floors, along with a substantial basement. The interior combines original architectural elements with contemporary improvements, including 28-foot vaulted ceilings, oversized windows, ceramic tile, multiple restrooms on each floor, and two stairwells. A new passenger elevator supports ADA access. Building systems include electric AC and heating, separate gas and electric meters for each space, supplemental gas heaters, ventilation provisions, and security gates.
The property has approximately 130 feet of wrap-around frontage at 405 Gates Avenue in Brooklyn’s Bedford-Stuyvesant/Clinton Hill area. Bedford-Nostrand Avenue subway station, Brooklyn Botanic Garden, Brooklyn Children’s Museum, parks, educational institutions, and fitness centers are identified nearby. A separately available adjacent development site at 403 Gates Avenue contains 1,875 SF with 5,625 BSF and may be acquired as part of a bundle.
The property has approximately 130 feet of wrap-around frontage at 405 Gates Avenue in Brooklyn’s Bedford-Stuyvesant/Clinton Hill area. Bedford-Nostrand Avenue subway station, Brooklyn Botanic Garden, Brooklyn Children’s Museum, parks, educational institutions, and fitness centers are identified nearby. A separately available adjacent development site at 403 Gates Avenue contains 1,875 SF with 5,625 BSF and may be acquired as part of a bundle.
Key Highlights
- Approximately 11,250 square feet across three floors plus a substantial basement
- Approximately 130 feet of wrap‑around frontage
- 28‑foot vaulted ceilings and oversized windows
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
$539,489
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
7.44%
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%
$10,789,780
$10.8M
Cap Rate 7%
$7,706,986
$7.7M
Cap Rate 9%
$5,994,322
$6.0M
Market Conditions
NOI Build-Up for 11,250 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
$874.8K $77.76/SF
− Vacancy
−$104.1K −$9.25/SF
EGI
$770.7K $68.51/SF
− OpEx
−$231.2K −$20.55/SF
NOI
$539.5K $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%
$10,789,780
Cap Rate 7%
$7,706,986
Cap Rate 9%
$5,994,322
Alternative Uses
Best Use
Retail
$7.71M
$6.74M – $8.99M
NOI $539,489 @ 7.0% cap · market cap 7.44%
Second Best
Mixed Use
$5.83M
$5.10M – $6.81M
NOI $408,375 @ 7.0% cap · market cap 5.63%
Theoretical Best
Specialty Retail
$9.32M
$8.15M – $10.87M
NOI $652,050 @ 7.0% cap · market cap 8.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
28 ft
Clear height
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
5,908
Businesses Nearby
217k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Home Improvements & Furnishings 29%
Dining 28%
Shops & Services 28%
Groceries 8%
The Home Depot
Home Improvements & Furnishings
63,386 visits/mo
0.4 miles
Shell
Shops & Services
29,804 visits/mo
0.5 miles
Chase Bank
Shops & Services
13,526 visits/mo
0.4 miles
McDonald's
Dining
12,482 visits/mo
0.3 miles
Bravo Supermarkets
Groceries
11,307 visits/mo
0.4 miles
Demographics for 11216, NY
61,251
Population
28,825
Households
2.1
Avg Household Size
34
Median Age
56%
College-Educated
91%
High-School Grad
1.0 sq mi
ZIP Area
61,251
Density / Sq Mi
$95,000
Median Household Income
$61,389
Median Earnings
$2,180
Median Rent
$1,398,400
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?
Mixed-use property - Three-floor commercial property with ADA access, passenger elevator, flexible interior layout, and wrap-around street frontage.
Where is this mixed-use property located?
The property is located at 405 Gates Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $7,250,000.
What are key features of this property?
This property features: Approximately 11,250 square feet across three floors plus a substantial basement; Approximately 130 feet of wrap‑around frontage; 28‑foot vaulted ceilings and oversized windows
