Restaurant Building with Event
For Sale
$2,880,000
816 Avenue U, Brooklyn, NY 11223
Occupied restaurant property with high ceilings, an open ground floor, and a finished basement for parties and events.
Property Size3,200 SF
Price / SF$900
Days on Market40
Property Features for 816 Avenue U
General Information
Standard status
Active
Size
3,200 SF
Property subtype
Commercial
Additional Details
Gross Income
$108,000
Building Details
Tenancy
Single
Listing Agency:
E House Realty & Mgt. Inc.
(718) 680-2776
Listed By:
David Feng
(718) 680-2776
Source:
Prideestates
Added: Jul 23
Changed: Aug 30
Last Checked: Aug 30 at 1:32PM
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 E House Realty & Mgt. Inc.
Investment Insights
Based on property information with market context.
This commercial restaurant property is occupied by an established Mexican restaurant. The ground level combines high ceilings with a wide-open floor plan, while the finished basement is configured for parties and events. Total property size is reported as 3,200.
The building is located at 816 Avenue U in Brooklyn’s Avenue U commercial corridor, a setting surrounded by supermarkets, restaurants, banks, and bakeries. The tenant is responsible for 50% of the property taxes, and the property is currently used for restaurant operations with additional basement event functionality.
The building is located at 816 Avenue U in Brooklyn’s Avenue U commercial corridor, a setting surrounded by supermarkets, restaurants, banks, and bakeries. The tenant is responsible for 50% of the property taxes, and the property is currently used for restaurant operations with additional basement event functionality.
Key Highlights
- Occupied by an established Mexican restaurant
- 3,200 total property size
- High ceilings and wide‑open ground‑floor layout
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
$185,472
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
6.44%
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%
$3,709,440
$3.7M
Cap Rate 7%
$2,649,600
$2.6M
Cap Rate 9%
$2,060,800
$2.1M
Market Conditions
NOI Build-Up for 3,200 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
$268.8K $84.00/SF
− Vacancy
−$21.5K −$6.72/SF
EGI
$247.3K $77.28/SF
− OpEx
−$61.8K −$19.32/SF
NOI
$185.5K $57.96/SF
Area
Brooklyn, NY
Vacancy
8.00%
Lease Rate
$84.00 /SF/Yr
Expense Ratio
25.00%
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%
$3,709,440
Cap Rate 7%
$2,649,600
Cap Rate 9%
$2,060,800
Alternative Uses
Best Use
Specialty Retail
$2.65M
$2.32M – $3.09M
NOI $185,472 @ 7.0% cap · market cap 6.44%
Second Best
Retail
$2.19M
$1.92M – $2.56M
NOI $153,455 @ 7.0% cap · market cap 5.33%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,242
Businesses Nearby
123k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Dining 35%
Electronics 4%
McDonald's
Dining
38,215 visits/mo
0.1 miles
BP
Shops & Services
20,388 visits/mo
0.2 miles
BP
Shops & Services
15,135 visits/mo
0.4 miles
Chase Bank
Shops & Services
15,025 visits/mo
0.2 miles
Sunoco
Shops & Services
13,641 visits/mo
0.3 miles
Demographics for 11223, NY
83,519
Population
28,857
Households
2.9
Avg Household Size
37
Median Age
34%
College-Educated
78%
High-School Grad
2.1 sq mi
ZIP Area
39,771
Density / Sq Mi
$63,950
Median Household Income
$40,592
Median Earnings
$1,653
Median Rent
$1,063,200
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?
Conventional restaurant - Occupied restaurant property with high ceilings, an open ground floor, and a finished basement for parties and events.
Where is this conventional restaurant located?
The property is located at 816 Avenue U Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,880,000.
What are key features of this property?
This property features: Occupied by an established Mexican restaurant; 3,200 total property size; High ceilings and wide‑open ground‑floor layout
