House of the Day: 367 7th Avenue

If you can swing the down payment for a commercial property, this 19th-century mixed use building in Park Slope is attractive with two nice apartments above and parking for two cars. The two apartments have two bedrooms each and open living space with inlaid herringbone floors. (The building appears to have been remodeled in the 1920s and again more recently.)

Every photo we found — even the 1970s tax photo — shows the gate down on the retail space, so maybe it’s been shuttered for years. Going by the photos in the listing, it appears to be currently used as storage. Maybe the sellers will cut you a deal and throw in the two vintage stoves. (That 1930s Art Deco-Cubist Magic Chef is rare; Vogue editor Sally Singer has one in her apartment in the Chelsea Hotel.)

For $3,499,000, how do you like it?

367 7th Avenue [Ideal] GMAP

7 Comment

  • For $3,499,000 I don’t like it one bit. Cut the price in half and it becomes much more likable.

  • I always assumed it was owned by the same guy who owns Animal Kind next door & that he used it for storage.

  • Hmmm — let’s see. Gross rent roll of 2500 per apt, 3k for retail, 600 for parking. That’s 103,200. Take out 3k for utilities, 15k for insurance, 8280 for tax, and maintenance and other costs will probably be 50k. Probably needs a new roof and the first floor space is raw. So your NOI *before* debt service is $27k. You’re at under a 1% cap. No wonder it’s sold on a residential brokerage site. Maybe rents are higher …. maybe costs are lower. But my experience is that costs are generally higher than you think. Net net it ain’t a great investment.

  • Rents are higher.
    One of the rentals went for $3600.
    The commercial space will go for upwards of 10k. Sweet Melissa’s spot, further north, was asking 13k. Commercial tenants are responsible for their own renovations, right?

  • lets be honest, they’re throwing this out there for something that has no juicy long term established commercial lease. So there is SOME risk, you just can’t pencil in 10k commerical rent and call it a day. It is a great location, incomes will continue to rise in the area, but the population density will not vs closer to 4th ave. It looks like a workable price though despite it being a dead location for such long time, but as far as ask and i’m guessing long term neglect on the structure (looking at facade on google streetview), you have to dig into this more and look at the deal.

  • What is the current market rent roll multiple for mixed used buildings. I’ve watched go from 6-8 to 14-17 to 22-24 (few years ago) to lost interest. Actual annual rent roll, assuming 22x, is probably about halfway in between the guesstimates offered by mhalejr and chemosphere.

    Point being it’s a losing prop to chase commercial properties at that ROI; it’s never going to make sense as a stand alone. Unless/until you max the FAR and carve it into condos, it’s a not a profitable venture.

  • If this goes for asking, I am putting my mixed us on the market.