274 Hall Street

Calling all savvy investors: this is a rare opportunity to own a mixed-use building in the center of Clinton Hill. Just around the corner from the subway, right across the street from Pratt Institute, 274 Hall Street has been a great investment for the sellers for decades. On the market for the first time, 274 Hall Street comprises a 1500 square-foot restaurant on the ground floor topped with 1400 square feet of residential space. The first floor has always housed a successful restaurant, and after severe competition to acquire the space last year, it now houses Rosalu Diner, which has been overwhelmingly well-received by the neighborhood. Rosalu completely renovated the ground floor and has a ten-year lease with an option, insuring strong income to a new owner for years to come. The second floor is presently vacant and in need of a gut-renovation--reflected in the asking price--but has tremendous potential as either two one-bedroom rental apartments or 1400 square feet of personal residence. The nearby presence of Pratt and subway transportation creates maximum rental appeal in one of Brooklyn's most prized neighborhoods. With 9.5-foot ceilings and 1400 square feet in which to roam, it could become a wonderful home as well.

Projected income is north of $130,000 annually, and the building has exceedingly low expenses. The commercial component pays 50% of the RE taxes, already uncommonly low at $3632 per year, as well as 70% of the water/sewer charges. The NOI should be $130,000 annually, rising at least 3% per year from the rent escalation of the commercial lease alone. The renovation of the second floor has been priced at $182,500 by professional contractors, so including that cost in addition to the purchase price should still equate to a 6% annual rate of return for a new owner. Finding a true cap rate over 5.5% in Brownstone Brooklyn is extremely rare. Offering memorandum available to all interested parties.