Freestanding Restaurant
New
For Sale
$2,000,000
101 Paterson Street, New Brunswick, NJ 08901
Fully built-out restaurant property with private parking, commercial kitchen, bar, and indoor-outdoor seating.
Property Size4,186 SF
Price / SF$477.78
Days on Market6
Property Features for 101 Paterson Street
General Information
Standard status
Active
Size
4,186 SF
Property subtype
Commercial
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
No
Taxes and HOA fees
Annual Taxes
$27,700
Amenities
Off Site
On Site
Paver Block
Building Details
Year Built
1907
Buildings
1
Abandoned
No
Listing Agency:
SIGNATURE REALTY NJ
(973) 921-1111
Listed By:
AMANDA CRUZ
Source:
Corcoran
Added: Aug 4
Changed: Aug 9
Last Checked: Aug 9 at 7:30AM
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 SIGNATURE REALTY NJ
Investment Insights
Based on property information with market context.
This freestanding restaurant building at 101 Paterson Street includes a fully built-out commercial kitchen, bar, indoor and outdoor seating, and a private upstairs party room. The property also includes a 50-seat bar and restaurant equipment owned by the property owner, which will remain with the building. The offering is for the real estate only; the operating business is not included.
The property is situated in New Brunswick between RWJUH, the courthouses, a parking deck, and the train. Current occupants operate under month-to-month leases and have indicated that they would sign a longer-term lease. The existing lease arrangement is structured as triple net, with tenants covering taxes.
The property is situated in New Brunswick between RWJUH, the courthouses, a parking deck, and the train. Current occupants operate under month-to-month leases and have indicated that they would sign a longer-term lease. The existing lease arrangement is structured as triple net, with tenants covering taxes.
Key Highlights
- Freestanding restaurant building with 4,186 SF
- Fully built‑out commercial kitchen, bar, and restaurant areas
- 50‑seat bar plus indoor 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
Retail
$853.5K
$746.9K – $995.8K
NOI $59,748 @ 7.0% cap · market cap 2.99%
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
Current Use
Location Intelligence
Trade Area within ½ mile
4,591
Businesses Nearby
66k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Groceries 20%
Shops & Services 18%
Electronics 8%
Starbucks
Dining
15,804 visits/mo
0.3 miles
honeygrow
Dining
11,102 visits/mo
0.3 miles
Bravo Supermarkets
Groceries
9,494 visits/mo
0.4 miles
TD Bank
Shops & Services
6,645 visits/mo
0.2 miles
Shell
Shops & Services
5,478 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 property with private parking, commercial kitchen, bar, and indoor-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: Freestanding restaurant building with 4,186 SF; Fully built‑out commercial kitchen, bar, and restaurant areas; 50‑seat bar plus indoor and outdoor seating
