Mixed-Use Property with Grocery
For Sale
$1,200,000
566 Hawthorne Ave, Newark, NJ 07112
Mixed-use property featuring a grocery store, apartments, and parking.
Property Size4,941 SF
Price / SF$242.87
Days on Market481
Property Features for 566 Hawthorne Ave
General Information
Standard status
Active
Size
4,941 SF
Taxes and HOA fees
Annual Taxes
$5,620
Listing Agency:
NEW DIRECTION REALTY
Listed By:
SILVIA LITUMA
Source:
Corcoran
Added: May 7, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 NEW DIRECTION REALTY
Investment Insights
Based on property information with market context.
This mixed-use property offers a total of 4,941 square feet and includes both commercial and residential spaces. The first floor features a renovated one-bedroom apartment with a living room, dining room, kitchen, and bathroom. Additionally, the first floor houses an existing 2,880 square foot grocery store/retail space. The grocery store, named "STACK N SMACK", is equipped with new shelving, a three-door fridge, a custom counter, a deli sandwich prep table with coolers, a TOAST POS self-ordering kiosk, cameras, ADT security, and LED smoke shop displays. The second floor contains two renovated apartments, each featuring two bedrooms, a living room, a dining room, a full bathroom, and a kitchen. A parking lot is located on the side of the building, generating $2,000 monthly from truck parking. The township has approved the parking lot for the construction of a two-family home.
Key Highlights
- Existing grocery store/retail space (2880 sqf) with new shelving, signage, and equipment (3‑door fridge, custom counter, deli prep table, POS kiosk, security system).
- Three renovated apartments (one 1‑bedroom, two 2‑bedroom) providing immediate rental income potential.
- Parking lot generates $2,000 monthly income from truck parking.
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
$106,370
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
8.86%
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%
$2,127,400
$2.1M
Cap Rate 7%
$1,519,571
$1.5M
Cap Rate 9%
$1,181,889
$1.2M
Market Conditions
NOI Build-Up for 4,941 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
$154.2K $31.20/SF
− Vacancy
−$12.3K −$2.50/SF
EGI
$141.8K $28.70/SF
− OpEx
−$35.5K −$7.18/SF
NOI
$106.4K $21.53/SF
Area
Newark, NJ
Vacancy
8.00%
Lease Rate
$31.20 /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%
$2,127,400
Cap Rate 7%
$1,519,571
Cap Rate 9%
$1,181,889
Alternative Uses
Best Use
Specialty Retail
$1.52M
$1.33M – $1.77M
NOI $106,370 @ 7.0% cap · market cap 8.86%
Second Best
Retail
$1.35M
$1.18M – $1.57M
NOI $94,319 @ 7.0% cap · market cap 7.86%
Theoretical Best
Office A
$1.75M
$1.53M – $2.04M
NOI $122,547 @ 7.0% cap · market cap 10.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,621
Businesses Nearby
Explore this area
Business Placement
Demographics for 07112, NJ
29,773
Population
11,779
Households
2.5
Avg Household Size
34
Median Age
18%
College-Educated
86%
High-School Grad
1.4 sq mi
ZIP Area
21,266
Density / Sq Mi
$55,171
Median Household Income
$35,709
Median Earnings
$1,334
Median Rent
$306,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property featuring a grocery store, apartments, and parking.
Where is this mixed-use property located?
The property is located at 566 Hawthorne Ave Newark, NJ.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Existing grocery store/retail space (2880 sqf) with new shelving, signage, and equipment (3‑door fridge, custom counter, deli prep table, POS kiosk, security system).; Three renovated apartments (one 1‑bedroom, two 2‑bedroom) providing immediate rental income potential.; Parking lot generates $2,000 monthly income from truck parking.
