Redevelopment Opportunity: Large Lots For
For Sale
$4,790,000
855-859 MOUNTAIN AVE Unit 1, Mountainside, NJ 07092
Large lots for sale with redevelopment potential in Mountainside/Westfield.
Property Size12,000 SF
Lot Size0.50 Acres
Price / SF$399.17
Days on Market766
Property Features for 855-859 MOUNTAIN AVE Unit 1
General Information
Standard status
Active
Size
12,000 SF
Lot size
0.50 Acres
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$32,865
Amenities
Concrete
Fire Alarm
3
Asphalt Shingle
comm/res
Parking. Corner Lot.
50 Parking Spaces. Off Street, Lot.
Level
126X195, 126X195
Handicapped Access, Storage Area, Freestanding. Central Business District, Corner, Level.
Listing Agency:
COLDWELL BANKER REALTY
(908) 812-3000
Listed By:
JOHN CLARK WILEY
(908) 812-3000
Source:
Xome
Added: Jul 5, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:40AM
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 COLDWELL BANKER REALTY
Investment Insights
Based on property information with market context.
This property presents a redevelopment opportunity with three large lots for sale. Lot 1 is a half-acre residential lot located in the Gardens section of Westfield, situated at the corner of Mountain Avenue and Mountainview Terrace. Adjoining Lots 2 and 3 face Mountain Avenue in downtown Mountainside. The property includes a 12,000-square-foot bank building featuring three levels, elevator access, and handicap accessibility. The commercial building is surrounded by parking areas and vacant land. This is a rare opportunity to build a home in a sought-after Westfield location and redevelop a visible location in downtown Mountainside.
Key Highlights
- Redevelopment opportunity: Three large lots, including a half‑acre residential lot in Westfield and two commercial lots in Mountainside.
- Prime location: Corner lot in the Gardens section of Westfield and a highly visible location in downtown Mountainside.
- Existing commercial building: 12,000 sq ft bank building with three levels, elevator, and handicap access.
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
$183,514
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
3.83%
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%
$3,670,280
$3.7M
Cap Rate 7%
$2,621,629
$2.6M
Cap Rate 9%
$2,039,044
$2.0M
Market Conditions
NOI Build-Up for 12,000 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
$259.2K $21.60/SF
− Vacancy
−$14.5K −$1.21/SF
EGI
$244.7K $20.39/SF
− OpEx
−$61.2K −$5.10/SF
NOI
$183.5K $15.29/SF
Area
Union 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%
$3,670,280
Cap Rate 7%
$2,621,629
Cap Rate 9%
$2,039,044
Alternative Uses
Best Use
Specialty Retail
$2.62M
$2.29M – $3.06M
NOI $183,514 @ 7.0% cap · market cap 3.83%
Second Best
Retail
$2.45M
$2.14M – $2.85M
NOI $171,279 @ 7.0% cap · market cap 3.58%
Theoretical Best
Office A
$3.13M
$2.74M – $3.66M
NOI $219,341 @ 7.0% cap · market cap 4.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
426
Businesses Nearby
7k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
7-Eleven
Shops & Services
6,245 visits/mo
0.1 miles
Bank of America
Shops & Services
941 visits/mo
0.1 miles
Demographics for 07092, NJ
7,082
Population
2,616
Households
2.7
Avg Household Size
47
Median Age
66%
College-Educated
97%
High-School Grad
4.0 sq mi
ZIP Area
1,771
Density / Sq Mi
$210,100
Median Household Income
$87,207
Median Earnings
$3,501
Median Rent
$755,600
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?
Residential land & home lot - Large lots for sale with redevelopment potential in Mountainside/Westfield.
Where is this residential land & home lot located?
The property is located at 855-859 MOUNTAIN AVE Unit 1 Mountainside, NJ.
What is the asking price?
The asking price for this property is $4,790,000.
What are key features of this property?
This property features: Redevelopment opportunity: Three large lots, including a half‑acre residential lot in Westfield and two commercial lots in Mountainside.; Prime location: Corner lot in the Gardens section of Westfield and a highly visible location in downtown Mountainside.; Existing commercial building: **12,000 sq ft bank building with three levels, elevator, and handicap access.**
