Freestanding Restaurant
For Sale
$2,000,000
101 Paterson Street, New Brunswick, NJ 08901
COMMERCIAL - New Brunswick, NJ
Property Size4,186 SF
Lot Size0.13 Acres
Price / SF$477.78
Days on Market17
Property Features for 101 Paterson Street
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
10
Parking features
Offsite, Parking Lot
Fireplace
1
Directions
use gps
Standard status
Active
APN
13-00023-01-00010-02
Size
4,186 SF
Lot size
0.13 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
27700
Utilities
Sewer type
Public Sewer
Water source
Public
Amenities
private parking
private upstairs party room
Building Details
Year built
1907
Floors in Building
2
Listing Agency:
Signature Realty NJ
(973) 921-1111
Listed By:
Amanda Cruz
(973) 921-1111
Added: Aug 4
Changed: Aug 7
Last Checked: Aug 20 at 11:06PM
MLS# 22623991
Copyright © 2026 More MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This freestanding restaurant building contains 4,186 square feet and was built in 1907. The existing build-out includes a commercial kitchen, bar, indoor and outdoor seating, and a private party room on the upper level. A 50-seat bar and restaurant equipment owned by the property owner are included. The offering is for the real estate only, separate from the operating business.
The property is situated on Paterson Street in New Brunswick near Robert Wood Johnson University Hospital, the courthouses, a parking deck, and the train station. Public water and public sewer serve the building. The current occupants are on a month-to-month lease and have indicated they would consider a longer-term lease. The property owner also holds a liquor license that may be acquired separately.
The property is situated on Paterson Street in New Brunswick near Robert Wood Johnson University Hospital, the courthouses, a parking deck, and the train station. Public water and public sewer serve the building. The current occupants are on a month-to-month lease and have indicated they would consider a longer-term lease. The property owner also holds a liquor license that may be acquired separately.
Key Highlights
- 4,186 SF freestanding restaurant building
- 1907 construction with existing restaurant build‑out
- Commercial kitchen, bar, indoor seating, and outdoor seating
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
$64,016
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
3.20%
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%
$1,280,320
$1.3M
Cap Rate 7%
$914,514
$914.5K
Cap Rate 9%
$711,289
$711.3K
Market Conditions
NOI Build-Up for 4,186 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
$90.4K $21.60/SF
− Vacancy
−$5.1K −$1.21/SF
EGI
$85.4K $20.39/SF
− OpEx
−$21.3K −$5.10/SF
NOI
$64.0K $15.29/SF
Area
Middlesex County, NJ
Vacancy
5.60%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$1,280,320
Cap Rate 7%
$914,514
Cap Rate 9%
$711,289
Alternative Uses
Best Use
Specialty Retail
$914.5K
$800.2K – $1.07M
NOI $64,016 @ 7.0% cap · market cap 3.20%
Second Best
Industrial
$671.2K
$587.3K – $783.1K
NOI $46,985 @ 7.0% cap · market cap 2.35%
Theoretical Best
Office A
$1.09M
$956.4K – $1.28M
NOI $76,513 @ 7.0% cap · market cap 3.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,574
Businesses Nearby
101k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 41%
Shops & Services 36%
Groceries 11%
Hotels & Casinos 6%
McDonald's
Dining
19,026 visits/mo
0.4 miles
BP
Shops & Services
15,684 visits/mo
0.1 miles
Burger King
Dining
11,655 visits/mo
0.5 miles
Fine Fare
Groceries
10,861 visits/mo
0.5 miles
AutoZone
Shops & Services
10,775 visits/mo
0.4 miles
Demographics for 08901, NJ
56,278
Population
17,071
Households
3.3
Avg Household Size
27
Median Age
24%
College-Educated
66%
High-School Grad
6.3 sq mi
ZIP Area
8,933
Density / Sq Mi
$60,248
Median Household Income
$25,192
Median Earnings
$1,790
Median Rent
$316,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully built-out restaurant space includes a commercial kitchen, bar, party room, and indoor and outdoor seating.
Where is this conventional restaurant located?
The property is located at 101 Paterson Street New Brunswick, NJ.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: 4,186 SF freestanding restaurant building; 1907 construction with existing restaurant build‑out; Commercial kitchen, bar, indoor seating, and outdoor seating
