456 40th Street
Multifamily | 9.14% CAP | 6 Units
Marketing description
EAR Properties LLC is pleased to exclusively present 456 40th Street, a 100% rent-stabilized, 6-unit multi-family asset located in the high-demand Sunset Park submarket of Brooklyn. Positioned with an official asking price of $780,000, this asset accounts for current NYC regulatory frameworks and immediate physical modernization requirements. It offers a calculated entry point for specialized workforce housing operators and 1031 Exchange buyers looking for immediate equity placement and long-term capital preservation.
Following the Housing Stability and Tenant Protection Act (HSTPA) of 2019, traditional value-add strategies involving rapid vacancy rent increases are heavily restricted. Therefore, this property is being positioned under an Asymmetric Capital Preservation Narrative.
A unique market anomaly in Sunset Park presents a remarkable value proposition for forward-thinking investors: while unencumbered, smaller 3-unit buildings in the immediate neighborhood routinely command significant premiums—typically trading between $1.6M and $2.2M—this 6-unit asset is positioned at an attractive official asking price of $780,000.
Investment highlights
- Insulated Revenue Stream: The Sunset Park submarket exhibits exceptionally low historical vacancy rates and an inherently stable workforce tenant base.
- Transit-Oriented Location: Situated directly along a primary transit axis, the property sits just blocks from the 36th Street D/N/R express subway line hub, providing rapid, direct commuting options into Manhattan.
- 1031 Exchange Placement: This asset represents a prime vehicle for 1031 Exchange buyers facing tight federal timelines to place capital, protect principal equity, and defer capital gains taxes.
- Double the Footprint at Less Than Half the Price: Acquire a 6-unit building at a massive absolute discount compared to smaller, unencumbered 3-unit neighborhood townhouses that command upwards of $1.6 million to $2.2 million.
- Built-In Income Diversification: Spreading baseline operational risk across 6 units rather than a 3-family building helps insulate against individual vacancy shocks and naturally balances out core low-rent exposures.
- Institutional Value Play: For private equity markets and workforce housing operators, this entry pricing accommodates initial institutional buyer discount adjustments while navigating complex DHCR multi-family footprints.
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