Approved Two-Unit Conversion
For Sale
$849,000
281 E Main St, Somerville, NJ 08876
Multi-Family, 2-Two Story, Under/Over, Somerville Boro, NJ
Property Size4,496 SF
Lot Size0.34 Acres
Price / SF$188.83
Days on Market17
Property Features for 281 E Main St
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning
PO-R
Bedrooms
6
Bathrooms
6
Full bathrooms
6
Rooms
Basement, Bedroom 4, Bedroom 3, Bathroom 1, Bathroom 5, Bathroom 3, Bathroom 4, Bedroom 6, Bathroom 6, Bedroom 5, Bedroom 1, Bedroom 2, Bathroom 2
Parking
6
Interior features
Walk-In Closet
Exterior features
Curbs, Privacy Fence
Fencing
Privacy
Subdivision
East Somerville
Elementary school
VAN DEVEER
Middle school
SOMERVILLE
High school
SOMERVILLE
Directions
Route 22 East, right on Gaston Ave, Left on East Main St, to #281 on Left
Standard status
Active
Size
4,496 SF
Lot size
0.34 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
10878
Utilities
Sewer type
Public Sewer
Heating system
Forced Air
Water source
Public
Building Details
Year built
1925
Floors in Building
2
Number of units
2
Roof type
Shingle
Architectural style
Other
Listing Agency:
RE/MAX PINNACLE · RE/MAX International
(908) 306-9600
Listed By:
STEWART DANIELS · License #0895636
(908) 306-0061
Added: Aug 13
Changed: Aug 19
Last Checked: Aug 29 at 12:06PM
MLS# 4046626
Copyright © 2026 Garden State MLS, LLC. 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 4,496-square-foot property is offered in its current condition with approved plans for conversion into two separate residences. Each proposed home includes three bedrooms and three full bathrooms, with private entrances and substantial living areas. Unit 1 is planned at approximately 1,843 square feet with a finished basement recreation area, laundry and utility space, an open living and dining arrangement, an island kitchen, pantry, and primary suite with walk-in closet and ensuite bath. Unit 2 is planned at approximately 2,461 square feet across the second and third floors, including a finished third-floor recreation room, laundry and utility room, island kitchen, and primary suite with walk-in closet and ensuite bath.
Exterior plans call for an expanded upper level, matching stucco, asphalt shingle roofing, new windows, and revised entrances. The proposed site plan includes six parking spaces, curbing, lawn areas, evergreen screening, perimeter landscaping, lighting, and drainage improvements. The property is located at 281 E Main St in Somerville Boro, with public water and public sewer. Built in 1925 and zoned PO-R.
Exterior plans call for an expanded upper level, matching stucco, asphalt shingle roofing, new windows, and revised entrances. The proposed site plan includes six parking spaces, curbing, lawn areas, evergreen screening, perimeter landscaping, lighting, and drainage improvements. The property is located at 281 E Main St in Somerville Boro, with public water and public sewer. Built in 1925 and zoned PO-R.
Key Highlights
- Approved plans for two 3‑bedroom, 3 full‑bath residences
- 4,496 square feet on a 0.34‑acre parcel
- Unit 1 planned at approximately 1,843 square feet
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
$64,166
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
7.56%
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%
$1,283,320
$1.3M
Cap Rate 7%
$916,657
$916.7K
Cap Rate 9%
$712,956
$713.0K
Market Conditions
NOI Build-Up for 4,496 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
$97.1K $21.60/SF
− Vacancy
−$5.4K −$1.21/SF
EGI
$91.7K $20.39/SF
− OpEx
−$27.5K −$6.12/SF
NOI
$64.2K $14.27/SF
Area
Somerset County, NJ
Vacancy
5.61%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
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%
$1,283,320
Cap Rate 7%
$916,657
Cap Rate 9%
$712,956
Alternative Uses
Best Use
Multifamily LT 5
$916.7K
$802.1K – $1.07M
NOI $64,166 @ 7.0% cap · market cap 7.56%
Second Best
Apartment 5plus
$797.8K
$698.1K – $930.8K
NOI $55,846 @ 7.0% cap · market cap 6.58%
Theoretical Best
Office A
$1.17M
$1.03M – $1.37M
NOI $82,180 @ 7.0% cap · market cap 9.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,396
Businesses Nearby
Explore this area
Business Placement
Demographics for 08876, NJ
22,849
Population
9,717
Households
2.4
Avg Household Size
40
Median Age
56%
College-Educated
94%
High-School Grad
16.0 sq mi
ZIP Area
1,428
Density / Sq Mi
$120,823
Median Household Income
$70,464
Median Earnings
$1,776
Median Rent
$468,400
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Plans provide two private residences with separate entrances, finished recreation areas, and updated exterior improvements.
Where is this duplex located?
The property is located at 281 E Main St Somerville, NJ.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: Approved plans for two 3‑bedroom, 3 full‑bath residences; 4,496 square feet on a 0.34‑acre parcel; Unit 1 planned at approximately 1,843 square feet
