Corner Mixed-Use
For Sale
$3,500,000
685 FRANKLIN Avenue, Brooklyn, NY 11238
Corner property combines rent-stabilized housing, leased commercial space, and a garage.
Property Size2,430 SF
Lot Size0.06 Acres
Price / SF$1,440
Days on Market15
Property Features for 685 FRANKLIN Avenue
General Information
Standard status
Active
Size
2,430 SF
Lot size
0.06 Acres
Property subtype
Mixed Use
Site & Location
Corner Location
Yes
Public Transit
Yes
Units
Unit Mix
2 x studio, 6 x one-bedroom, 6 x two-bedroom
Multifamily Units
14
Taxes and HOA fees
Annual Taxes
$67,764
Building Details
Building Size
2,430 SF
Buildings
1
Tenancy
Multi
Listing Agency:
Corcoran Group
(917) 549-2428
Listed By:
Sebastian Lopera · License #10401208921 (NY)
(917) 549-2428
Source:
Howardhannanyc
Added: Aug 4
Changed: Aug 14
Last Checked: Aug 18 at 5:56AM
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 Corcoran Group
Investment Insights
Based on property information with market context.
This mixed-use property contains 14 rent-stabilized apartments, a commercial space, and one garage within a 2,430-square-foot building on a 2,790-square-foot lot. The residential layout includes 2 studios, 6 one-bedroom apartments, and 6 two-bedroom apartments. The commercial component is leased long term and is currently undergoing a complete gut renovation.
Capital work completed in 2021 included a new roof, electrical system upgrades, gas-metering improvements, and water-heater replacements. The building occupies a corner position at 685 Franklin Avenue in Brooklyn’s Crown Heights neighborhood, near Prospect Park and the Franklin Avenue corridor. Subway access includes the 2, 3, 4, 5, A, C, and S lines.
Capital work completed in 2021 included a new roof, electrical system upgrades, gas-metering improvements, and water-heater replacements. The building occupies a corner position at 685 Franklin Avenue in Brooklyn’s Crown Heights neighborhood, near Prospect Park and the Franklin Avenue corridor. Subway access includes the 2, 3, 4, 5, A, C, and S lines.
Key Highlights
- 14 rent‑stabilized apartments with 2 studios, 6 one‑bedrooms, and 6 two‑bedrooms
- 2,430‑square‑foot mixed‑use building on a 2,790‑square‑foot lot
- One commercial space secured by a long‑term lease
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
$116,530
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
3.33%
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%
$2,330,600
$2.3M
Cap Rate 7%
$1,664,714
$1.7M
Cap Rate 9%
$1,294,778
$1.3M
Market Conditions
NOI Build-Up for 2,430 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
$189.0K $77.76/SF
− Vacancy
−$22.5K −$9.25/SF
EGI
$166.5K $68.51/SF
− OpEx
−$49.9K −$20.55/SF
NOI
$116.5K $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%
$2,330,600
Cap Rate 7%
$1,664,714
Cap Rate 9%
$1,294,778
Alternative Uses
Best Use
Retail
$1.66M
$1.46M – $1.94M
NOI $116,530 @ 7.0% cap · market cap 3.33%
Second Best
Mixed Use
$1.26M
$1.10M – $1.47M
NOI $88,209 @ 7.0% cap · market cap 2.52%
Theoretical Best
Specialty Retail
$2.01M
$1.76M – $2.35M
NOI $140,843 @ 7.0% cap · market cap 4.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
14
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
6,146
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Corner property combines rent-stabilized housing, leased commercial space, and a garage.
Where is this mixed-use property located?
The property is located at 685 FRANKLIN Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 14 rent‑stabilized apartments with 2 studios, 6 one‑bedrooms, and 6 two‑bedrooms; 2,430‑square‑foot mixed‑use building on a 2,790‑square‑foot lot; One commercial space secured by a long‑term lease
