Brooklyn Heights Brownstone Apartment
For Sale
$4,300,000
87 Joralemon Street, Brooklyn, NY 11201
Five-story, 10-unit apartment building in desirable Brooklyn Heights location.
Property Size4,926 SF
Lot Size0.05 Acres
Price / SF$872.92
Days on Market133
Property Features for 87 Joralemon Street
General Information
Standard status
Active
Size
4,926 SF
Lot size
0.05 Acres
Property subtype
Multifamily
Amenities
Supreme Location of Brooklyn Heights on Joralemon Street between Garden Place and Hicks Street
10 Family Brownstone with Nine Free-Market Units
Three Vacant Apartments Offer Significant Rental Upside
Short Distance to the Brooklyn Promenade
Building Details
Building Size
4,926 SF
Units
10
Listing Agency:
Marcus & Millichap | Manhattan
(718) 475-4373
Listed By:
John Brennan · License #License(s): NY: 10301221743
(718) 475-4373
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Aug 13 at 3:05AM
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 Marcus & Millichap | Manhattan
Investment Insights
Based on property information with market context.
Located in the Brooklyn Heights neighborhood of Brooklyn, New York, 87 Joralemon Street is a five-story brownstone building featuring 10 residential apartments. Constructed in 1910, the property is situated between Garden Place and Hicks, a few blocks from the Borough Hall 2, 3, 4 & 5 train lines. The building has dimensions of approximately 20 feet by 48 feet on a 100.67-foot deep lot. With an approximately 63 square foot extension on both the first and second floors, the gross building size is approximately 4,926 square feet. Zoned R6 and classified as Tax Class 2B, the property presents an opportunity to acquire a brownstone apartment building on a desirable block in Brooklyn Heights. The property offers cash-flow, with the potential for single-family, or condo, redevelopment in the future.
Key Highlights
- Prime Brooklyn Heights Location on a highly desirable block.
- Redevelopment Potential for single‑family or condo redevelopment.
- Cash‑Flow Opportunity as a currently operating apartment building.
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
$150,386
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
3.50%
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%
$3,007,720
$3.0M
Cap Rate 7%
$2,148,371
$2.1M
Cap Rate 9%
$1,670,956
$1.7M
Market Conditions
NOI Build-Up for 4,926 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
$279.0K $56.64/SF
− Vacancy
−$5.6K −$1.13/SF
EGI
$273.4K $55.51/SF
− OpEx
−$123.0K −$24.98/SF
NOI
$150.4K $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%
$3,007,720
Cap Rate 7%
$2,148,371
Cap Rate 9%
$1,670,956
Alternative Uses
Best Use
Apartment 5plus
$2.15M
$1.88M – $2.51M
NOI $150,386 @ 7.0% cap · market cap 3.50%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.08M
$3.57M – $4.76M
NOI $285,511 @ 7.0% cap · market cap 6.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
9,891
Businesses Nearby
Explore this area
Business Placement
Demographics for 11201, NY
69,703
Population
36,155
Households
1.9
Avg Household Size
35
Median Age
79%
College-Educated
96%
High-School Grad
1.4 sq mi
ZIP Area
49,788
Density / Sq Mi
$169,285
Median Household Income
$113,681
Median Earnings
$3,207
Median Rent
$1,131,700
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 - Five-story, 10-unit apartment building in desirable Brooklyn Heights location.
Where is this apartment building located?
The property is located at 87 Joralemon Street Brooklyn, NY.
What is the asking price?
The asking price for this property is $4,300,000.
What are key features of this property?
This property features: Prime Brooklyn Heights Location on a highly desirable block.; Redevelopment Potential for single‑family or condo redevelopment.; Cash‑Flow Opportunity as a currently operating apartment building.
