Mixed-Use Property with
For Sale
$1,350,000
607 Hegeman Avenue, Brooklyn, NY 11207
Ground-floor commercial space is paired with an upper-level two-family residential configuration.
Property Size2,776 SF
Days on Market329
Property Features for 607 Hegeman Avenue
General Information
Standard status
Active
Size
2,776 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$4,998
Building Details
Building Size
2,776 SF
Year Built
1930
Units
2
Listing Agency:
5 Boro Realty Corp
(646) 821-0414
Listed By:
Natalie Efraimov
(646) 821-0414
Source:
Mahlerrealty
Added: Oct 6, 2025
Changed: Aug 29
Last Checked: Aug 29 at 7:06PM
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 5 Boro Realty Corp
Investment Insights
Based on property information with market context.
Located at 607 Hegeman Avenue in Brooklyn, this mixed-use building combines a commercial storefront at street level with residential space above. The upper portion is arranged as two family-oriented units totaling 8 bedrooms and 3 bathrooms, providing a substantial residential component within the property.
Constructed in 1930, the building offers a combination of commercial and residential areas in a single asset. The storefront can support retail or office occupancy, while the residential layout includes multiple living spaces suitable for family or tenant use.
Constructed in 1930, the building offers a combination of commercial and residential areas in a single asset. The storefront can support retail or office occupancy, while the residential layout includes multiple living spaces suitable for family or tenant use.
Key Highlights
- Ground‑floor commercial storefront
- Two‑family residential configuration above the commercial space
- 8 bedrooms and 3 bathrooms across multiple residential units
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
$100,769
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
7.46%
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%
$2,015,380
$2.0M
Cap Rate 7%
$1,439,557
$1.4M
Cap Rate 9%
$1,119,656
$1.1M
Market Conditions
NOI Build-Up for 2,776 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
$183.2K $66.00/SF
− Vacancy
−$22.0K −$7.92/SF
EGI
$161.2K $58.08/SF
− OpEx
−$60.5K −$21.78/SF
NOI
$100.8K $36.30/SF
Area
Brooklyn, NY
Vacancy
12.00%
Lease Rate
$66.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,015,380
Cap Rate 7%
$1,439,557
Cap Rate 9%
$1,119,656
Alternative Uses
Best Use
Retail
$1.90M
$1.66M – $2.22M
NOI $133,122 @ 7.0% cap · market cap 9.86%
Second Best
Mixed Use
$1.44M
$1.26M – $1.68M
NOI $100,769 @ 7.0% cap · market cap 7.46%
Theoretical Best
Specialty Retail
$2.30M
$2.01M – $2.68M
NOI $160,897 @ 7.0% cap · market cap 11.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,252
Businesses Nearby
Explore this area
Business Placement
Demographics for 11207, NY
100,330
Population
38,030
Households
2.6
Avg Household Size
35
Median Age
19%
College-Educated
81%
High-School Grad
2.7 sq mi
ZIP Area
37,159
Density / Sq Mi
$55,419
Median Household Income
$41,008
Median Earnings
$1,443
Median Rent
$657,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Ground-floor commercial space is paired with an upper-level two-family residential configuration.
Where is this mixed-use property located?
The property is located at 607 Hegeman Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Ground‑floor commercial storefront; Two‑family residential configuration above the commercial space; 8 bedrooms and 3 bathrooms across multiple residential units
