Myrtle Avenue in Clinton Hill is bustling. New businesses are popping up all over, and Massey Knakal's had their finger on the pulse the whole time. It's actually odd to us how long it took Fulton Street (where the trains actually are in Clinton Hill) to catch up to the kind of activity that Myrtle's been seeing for years. It's about as bustling as you're going to see for a train-deprived stretch of commercial avenue. Then, if you can find a way to slap a 6-cap on something, you've got people's attention. 411 Myrtle Avenue is a mixed-use property with a store on the ground floor and 3 apartments above.
The store's already paying $4,200/month and the apartments range from $1,800 - $2,200/month. We'd consider this healthy and at the top of market. With the gross rent sitting at $123K, we can think of a handful of investors who'd slap a $1.2M price tag on this thing and wonder why they never get it. But Massey knows better. They barely market their places sometimes and they barely need to. An investor will recognize what's going on and pick this up closer to asking price than most would expect. We might poke around the Carroll Gardens plays for this price or less, but certainly a case can and will be made for Myrtle between Vanderbilt and Clinton.
Pro's: location, 20' x 50', good rental income, "Each residential tenant pays their own heat/electric utilities"
Con's: not much upside in the rents for now, won't go for a value bid price
Ideally: a nice dose of reality for the 8-Cap unicorn hunters
Sold for $1.425M, or a 6.68% cap rate. As Massey points out, they've moved 8 buildings on Myrtle Ave since 2010.
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