Sunset Park Medical Office
For Sale
Contact for pricing
863 50th Street M5, Brooklyn, NY 11220
Well-maintained medical office in Sunset Park, modern elevator building.
Property Size1,018 SF
Price / SF$509.82
Days on Market105
Property Features for 863 50th Street M5
General Information
Standard status
Active
Size
1,018 SF
Property subtype
Office
Building Details
Year Built
2004
Stories
6
Listing Agency:
REMAX EDGE
(718) 612-3088
Listed By:
Jason Zhou · License #10301217017
Source:
Crexi
Added: May 14
Changed: Aug 8
Last Checked: Aug 8 at 7:27AM
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 REMAX EDGE
Investment Insights
Based on property information with market context.
Located in the heart of Sunset Park, this well-maintained medical office space is available for sale. Situated on the 2nd floor of a modern elevator building constructed in 2004, the unit encompasses approximately 1,018 square feet. For the past 16 years, it has been operated as a pediatric office. The layout features a bright waiting/reception area, an enclosed front desk, three exam/office rooms, a storage room, a pantry, and two bathrooms, including one handicap-accessible bathroom. The property is equipped with central air conditioning and baseboard heating. On-site parking is available for rent at $300 per month. The monthly HOA fee is $573.78, which includes heat and water. The annual property tax is $10,679. The property is conveniently located near transportation, shopping, and other neighborhood amenities.
Key Highlights
- Well‑maintained medical office space suitable for immediate use.
- Established pediatric office location for 16 years.
- Modern elevator building constructed in 2004.
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
$30,400
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
5.86%
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%
$608,000
$608.0K
Cap Rate 7%
$434,286
$434.3K
Cap Rate 9%
$337,778
$337.8K
Market Conditions
NOI Build-Up for 1,018 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
$51.3K $50.40/SF
− Vacancy
−$10.8K −$10.58/SF
EGI
$40.5K $39.82/SF
− OpEx
−$10.1K −$9.95/SF
NOI
$30.4K $29.86/SF
Area
ZIP 11220
Vacancy
21.00%
Lease Rate
$50.40 /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%
$608,000
Cap Rate 7%
$434,286
Cap Rate 9%
$337,778
Alternative Uses
Best Use
Office B
$434.3K
$380.0K – $506.7K
NOI $30,400 @ 7.0% cap · market cap 5.86%
Second Best
Healthcare Medical
$294.9K
$258.0K – $344.0K
NOI $20,640 @ 7.0% cap · market cap 3.98%
Theoretical Best
Office A
$659.9K
$577.5K – $769.9K
NOI $46,196 @ 7.0% cap · market cap 8.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,809
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 11220, NY
105,797
Population
30,897
Households
3.4
Avg Household Size
35
Median Age
25%
College-Educated
62%
High-School Grad
1.7 sq mi
ZIP Area
62,234
Density / Sq Mi
$64,201
Median Household Income
$31,489
Median Earnings
$1,688
Median Rent
$1,021,200
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?
Medical Office Space - Well-maintained medical office in Sunset Park, modern elevator building.
Where is this medical office space located?
The property is located at 863 50th Street M5 Brooklyn, NY.
What is the asking price?
The asking price for this property is $519,000.
What are key features of this property?
This property features: Well‑maintained medical office space suitable for immediate use.; Established pediatric office location for 16 years.; Modern elevator building constructed in 2004.
