Six-Unit Mixed-Use
For Sale
Contact for pricing
688 New Lots Avenue, Brooklyn, NY 11207
Six-unit property with ground-floor commercial space and recent infrastructure upgrades in Brooklyn’s East New York.
Property Size5,398 SF
Price / SF$444.61
Days on Market73
Property Features for 688 New Lots Avenue
General Information
Standard status
Active
Size
5,398 SF
Property subtype
Mixed Use
Zoning
R5
Occupancy
83%
Net Operating Income
$171,211
Additional Details
Multifamily Units
5
Building Details
Year Built
1930
Year Renovated
2024
Buildings
1
Tenancy
Multi
Listing Agency:
Bridge Advisory Group
Listed By:
Lee Eliyahu · License #10401366824
Source:
Crexi
Added: Jun 2
Changed: Aug 8
Last Checked: Jul 15 at 11:09AM
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 Bridge Advisory Group
Investment Insights
Based on property information with market context.
688 New Lots Avenue is a six-unit mixed-use asset comprising five residential units and one ground-floor commercial space. The property has undergone recent upgrades that include an updated brick façade, conversion from oil to gas, installation of a new 6" sewage line to the street, and electric stoves added to most of the units, which helps minimize deferred maintenance. The mix also includes a vacant unit with conversion potential.
The building is positioned along a heavily trafficked corridor directly in front of a bus stop and near major transit lines, supporting both residential and street-level retail exposure within the East New York submarket of Brooklyn. The offering notes ongoing rezoning initiatives in the surrounding area.
For an owner-operator or investor, this configuration can appeal to parties seeking a combination of residential income and a ground-floor commercial component, with the ability to address the current vacancy and pursue rent optimization upon tenant turnover. The remarks state strong in-place cash flow and a projected proforma cap rate exceeding 8%. The listing also references potential tenanting via CityFHEPS programs.
The building is positioned along a heavily trafficked corridor directly in front of a bus stop and near major transit lines, supporting both residential and street-level retail exposure within the East New York submarket of Brooklyn. The offering notes ongoing rezoning initiatives in the surrounding area.
For an owner-operator or investor, this configuration can appeal to parties seeking a combination of residential income and a ground-floor commercial component, with the ability to address the current vacancy and pursue rent optimization upon tenant turnover. The remarks state strong in-place cash flow and a projected proforma cap rate exceeding 8%. The listing also references potential tenanting via CityFHEPS programs.
Key Highlights
- 100% free‑market six‑unit mixed‑use building (5 residential units and 1 ground‑floor commercial space), built in 1930
- Recent upgrades include updated brick facade, conversion from oil to gas, and a new 6" sewage line to the street
- Electric stoves added in most of the 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
$164,795
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
6.87%
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%
$3,295,900
$3.3M
Cap Rate 7%
$2,354,214
$2.4M
Cap Rate 9%
$1,831,056
$1.8M
Market Conditions
NOI Build-Up for 5,398 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
$305.7K $56.64/SF
− Vacancy
−$6.1K −$1.13/SF
EGI
$299.6K $55.51/SF
− OpEx
−$134.8K −$24.98/SF
NOI
$164.8K $30.53/SF
Area
Brooklyn, NY
Vacancy
2.00%
Lease Rate
$56.64 /SF/Yr
Expense Ratio
45.00%
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%
$3,295,900
Cap Rate 7%
$2,354,214
Cap Rate 9%
$1,831,056
Alternative Uses
Best Use
Retail
$3.70M
$3.24M – $4.31M
NOI $258,859 @ 7.0% cap · market cap 10.79%
Second Best
Apartment 5plus
$2.35M
$2.06M – $2.75M
NOI $164,795 @ 7.0% cap · market cap 6.87%
Theoretical Best
Specialty Retail
$4.47M
$3.91M – $5.21M
NOI $312,868 @ 7.0% cap · market cap 13.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,593
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 Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Six-unit property with ground-floor commercial space and recent infrastructure upgrades in Brooklyn’s East New York.
Where is this apartment building located?
The property is located at 688 New Lots Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: 100% free‑market six‑unit mixed‑use building (5 residential units and 1 ground‑floor commercial space), built in 1930; Recent upgrades include updated brick facade, conversion from oil to gas, and a new 6" sewage line to the street; Electric stoves added in most of the residential units
