Mixed-Use Building with
For Sale
$2,120,000
8706 5th Avenue, Brooklyn, NY 11209
Tenant-occupied property combines storefront space with residential units.
Property Size5,220 SF
Price / SF$406.13
Days on Market203
Property Features for 8706 5th Avenue
General Information
Standard status
Active
Size
5,220 SF
Property subtype
Mixed Use
Occupancy
100%
Net Operating Income
$80,635
Additional Details
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$38,025
Amenities
backyard
110 V, 220 V
Ceramic
4+
Crawl Space
Poured Concrete, Slab Concrete
Brick
Heated
Doors - 10 ft and under
Building Details
Year Built
1925
Buildings
1
Tenancy
Multi
Listing Agency:
E House Realty & Mgt. Inc.
(718) 680-2776
Listed By:
Nganoi Anna Huang · License #nah8714
(718) 680-2776
Source:
Compass
Added: Feb 9
Changed: Aug 30
Last Checked: Aug 30 at 11:47PM
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 1925 brick mixed-use building contains one storefront and five apartments, with all six spaces tenant occupied. The building measures 20X88 on a 20X100 lot and includes a small backyard suitable for storage and entertainment. Interior features include heating, ceramic finishes, 110 V and 220 V service, crawl space, and poured concrete and slab concrete construction elements.
Located at 8706 5th Avenue in Brooklyn’s Bay Ridge area, the property is close to transportation, restaurants, and shopping centers. Exterior details include brick construction and doors measuring 10 ft and under.
Located at 8706 5th Avenue in Brooklyn’s Bay Ridge area, the property is close to transportation, restaurants, and shopping centers. Exterior details include brick construction and doors measuring 10 ft and under.
Key Highlights
- One storefront plus 5 apartments; all spaces are tenant occupied
- Building measures 20X88 on a 20X100 lot
- 1925 construction with brick exterior
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
$189,486
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
8.94%
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%
$3,789,720
$3.8M
Cap Rate 7%
$2,706,943
$2.7M
Cap Rate 9%
$2,105,400
$2.1M
Market Conditions
NOI Build-Up for 5,220 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
$344.5K $66.00/SF
− Vacancy
−$41.3K −$7.92/SF
EGI
$303.2K $58.08/SF
− OpEx
−$113.7K −$21.78/SF
NOI
$189.5K $36.30/SF
Area
Brooklyn, NY
Vacancy
12.00%
Lease Rate
$66.00 /SF/Yr
Expense Ratio
37.50%
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%
$3,789,720
Cap Rate 7%
$2,706,943
Cap Rate 9%
$2,105,400
Alternative Uses
Best Use
Retail
$3.58M
$3.13M – $4.17M
NOI $250,323 @ 7.0% cap · market cap 11.81%
Second Best
Mixed Use
$2.71M
$2.37M – $3.16M
NOI $189,486 @ 7.0% cap · market cap 8.94%
Theoretical Best
Specialty Retail
$4.32M
$3.78M – $5.04M
NOI $302,551 @ 7.0% cap · market cap 14.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
4,276
Businesses Nearby
Explore this area
Business Placement
Demographics for 11209, NY
73,239
Population
33,286
Households
2.2
Avg Household Size
40
Median Age
53%
College-Educated
90%
High-School Grad
2.1 sq mi
ZIP Area
34,876
Density / Sq Mi
$92,656
Median Household Income
$62,455
Median Earnings
$1,857
Median Rent
$905,700
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?
Mixed-use property - Tenant-occupied property combines storefront space with residential units.
Where is this mixed-use property located?
The property is located at 8706 5th Avenue Brooklyn, NY.
What is the asking price?
The asking price for this property is $2,120,000.
What are key features of this property?
This property features: One storefront plus 5 apartments; all spaces are tenant occupied; Building measures 20X88 on a 20X100 lot; 1925 construction with brick exterior
