Crown Heights Mixed-Use Corner
For Sale
$2,100,000
Pending
631 Franklin Avenue, Brooklyn, NY 11238
Three-story mixed-use property with commercial space, apartments, and garages.
Property Size3,400 SF
Lot Size0.04 Acres
Days on Market785
Property Features for 631 Franklin Avenue
General Information
Standard status
Pending
Size
3,400 SF
Lot size
0.04 Acres
Property subtype
other
Taxes and HOA fees
Annual Taxes
$12,802
Building Details
Year Built
1905
Listing Agency:
Bellmarc
(718) 768-4500
Listed By:
Gamal Hasan
(718) 768-4500
Source:
Exitrealty
Added: Jun 20, 2024
Changed: Aug 8
Last Checked: Aug 12 at 5:12AM
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 Bellmarc
Investment Insights
Based on property information with market context.
Located in the Crown Heights neighborhood of Brooklyn, this three-story mixed-use property includes a basement, a first-level commercial space, two upper rental apartments, and three garages. The property is positioned at the intersection of Crown Heights and Prospect Heights. The ground floor features a commercial area with visibility. The two apartments above offer living spaces for tenants. The property is situated on a 20' x 80' lot with R7A zoning, and it has approximately 3,000 square feet of buildable air rights, subject to confirmation. The full basement has high ceilings and provides storage or workshop space. The property is near dining and retail hubs along Franklin, Flatbush, Washington, and Vanderbilt Avenues. Residents and tenants have access to transportation with nearby train and bus services. The property is being offered subject to the existing tenancy on the first and second floors, with the top-floor apartment available for immediate occupancy. The property size is 3,400 square feet.
Key Highlights
- Prime corner location at the intersection of Crown Heights and Prospect Heights
- Commercial space on the first level with high visibility
- Buildable air rights of 3,000 sq ft (subject to confirmation)
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
$163,046
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
7.76%
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%
$3,260,920
$3.3M
Cap Rate 7%
$2,329,229
$2.3M
Cap Rate 9%
$1,811,622
$1.8M
Market Conditions
NOI Build-Up for 3,400 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
$264.4K $77.76/SF
− Vacancy
−$31.5K −$9.25/SF
EGI
$232.9K $68.51/SF
− OpEx
−$69.9K −$20.55/SF
NOI
$163.0K $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%
$3,260,920
Cap Rate 7%
$2,329,229
Cap Rate 9%
$1,811,622
Alternative Uses
Best Use
Retail
$2.33M
$2.04M – $2.72M
NOI $163,046 @ 7.0% cap · market cap 7.76%
Second Best
Mixed Use
$1.76M
$1.54M – $2.06M
NOI $123,420 @ 7.0% cap · market cap 5.88%
Theoretical Best
Specialty Retail
$2.82M
$2.46M – $3.28M
NOI $197,064 @ 7.0% cap · market cap 9.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,479
Businesses Nearby
180k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 40%
Dining 34%
Groceries 17%
Apparel 6%
Shell
Shops & Services
29,804 visits/mo
0.2 miles
Urban Market by Key Food
Groceries
13,185 visits/mo
0.2 miles
McDonald's
Dining
12,482 visits/mo
0.4 miles
Bravo Supermarkets
Groceries
11,307 visits/mo
0.4 miles
Dunkin' Donuts
Dining
10,893 visits/mo
0.5 miles
Demographics for 11238, NY
60,090
Population
29,588
Households
2
Avg Household Size
35
Median Age
71%
College-Educated
93%
High-School Grad
1.8 sq mi
ZIP Area
33,383
Density / Sq Mi
$132,957
Median Household Income
$85,179
Median Earnings
$2,511
Median Rent
$1,146,000
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-story mixed-use property with commercial space, apartments, and garages.
Where is this mixed-use property located?
The property is located at 631 Franklin Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Prime corner location at the intersection of Crown Heights and Prospect Heights; Commercial space on the first level with high visibility; Buildable air rights of 3,000 sq ft (subject to confirmation)
