Seaside Heights Boardwalk Restaurant
For Sale
$1,500,000
1003 Ocean Terrace, Seaside Heights, NJ 08751
Prime boardwalk location with existing restaurant and expansion potential.
Property Size7,740 SF
Price / SF$193.80
Days on Market293
Property Features for 1003 Ocean Terrace
General Information
Standard status
Active
Size
7,740 SF
Property subtype
General Commercial
Amenities
None, Room Refrig
3
Tile, Concrete
Parking.
1 Parking Spaces. Off Street, On Street.
Ocean
Beach, Ocean, Sidewalks.
Building Details
Year Built
1940
Listing Agency:
Childers Sotheby's Intl Realty
(732) 793-5500
Listed By:
Jeffrey Childers · License #0895595
(732) 779-3087
Source:
Xome
Added: Nov 20, 2025
Changed: Sep 8
Last Checked: Jul 23 at 9:37AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Childers Sotheby's Intl Realty
Investment Insights
Based on property information with market context.
Located directly on the north end of Seaside Heights Boardwalk, this property benefits from high foot traffic and close proximity to Casino Pier and Breakwater Beach, with ample parking nearby. The existing restaurant has 3 years remaining on its lease. The building, totaling 7,740 square feet, is connected with gas, electricity, and water, and features an ANSUL and basement-level fire suppression system. A new roof and signage are scheduled for installation in 2025. The property includes a large basement with offices, three walk-in units, storage, a prep kitchen, and a loading bay with direct access. Situated in the Resort Recreational Zone, the current structure can be used as is or expanded for optimal use.
Key Highlights
- Directly on the north end of Seaside Heights Boardwalk in a high‑foot traffic area.
- Existing restaurant lease in place for 3 years providing immediate income.
- Large basement with offices, three walk‑ins, prep kitchen, storage, and direct access loading bay.
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
$118,366
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
7.89%
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%
$2,367,320
$2.4M
Cap Rate 7%
$1,690,943
$1.7M
Cap Rate 9%
$1,315,178
$1.3M
Market Conditions
NOI Build-Up for 7,740 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
$167.2K $21.60/SF
− Vacancy
−$9.4K −$1.21/SF
EGI
$157.8K $20.39/SF
− OpEx
−$39.5K −$5.10/SF
NOI
$118.4K $15.29/SF
Area
Ocean 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%
$2,367,320
Cap Rate 7%
$1,690,943
Cap Rate 9%
$1,315,178
Alternative Uses
Best Use
Specialty Retail
$1.69M
$1.48M – $1.97M
NOI $118,366 @ 7.0% cap · market cap 7.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.02M
$1.77M – $2.36M
NOI $141,475 @ 7.0% cap · market cap 9.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
628
Businesses Nearby
3k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 82%
Dining 18%
7-Eleven
Shops & Services
2,117 visits/mo
0.1 miles
Three Brothers Pizza
Dining
530 visits/mo
0.5 miles
Marathon
Shops & Services
263 visits/mo
0.1 miles
Demographics for 08751, NJ
3,867
Population
5,319
Households
0.7
Avg Household Size
48
Median Age
39%
College-Educated
90%
High-School Grad
1.3 sq mi
ZIP Area
2,975
Density / Sq Mi
$75,000
Median Household Income
$52,273
Median Earnings
$1,437
Median Rent
$583,000
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Catering by William — 14 N St, Seaside Park, NJ 08752
- Jersey Food Truck — 16 Dupont Ave, Seaside Heights, NJ 08751
Frequently Asked Questions
What type of property is this?
Restaurant - Prime boardwalk location with existing restaurant and expansion potential.
Where is this restaurant located?
The property is located at 1003 Ocean Terrace Seaside Heights, NJ.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Directly on the north end of Seaside Heights Boardwalk in a high‑foot traffic area.; Existing restaurant lease in place for 3 years providing immediate income.; Large basement with offices, three walk‑ins, prep kitchen, storage, and direct access loading bay.
