Auto Repair Shop For
For Sale
$975,000
305 S Michigan Ave, Kenilworth, NJ 07033
Full-service auto repair shop with equipment and client history included.
Property Size2,600 SF
Price / SF$375
Days on Market483
Property Features for 305 S Michigan Ave
General Information
Standard status
Active
Size
2,600 SF
Taxes and HOA fees
Annual Taxes
$10,072
Building Details
Year Built
1920
Listing Agency:
SIGNATURE REALTY NJ
(973) 921-1111
Listed By:
SALOME CARRILLO-FIERRO
Source:
Corcoran
Added: Apr 21, 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 SIGNATURE REALTY NJ
Investment Insights
Based on property information with market context.
This is a full-service auto repair shop with the real estate included in the purchase price. The shop features heated and air-conditioned bays with room to work on 6 cars inside. There is parking available for 8 cars outside, plus driveway space. The property is 2600 square feet. The sale includes all necessary equipment and a history of current clients.
Key Highlights
- Includes Real Estate
- All necessary equipment included for a full service Auto Repair Shop.
- Room to work on 6 cars inside heated/air conditioned bays.
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
$37,111
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
3.81%
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%
$742,220
$742.2K
Cap Rate 7%
$530,157
$530.2K
Cap Rate 9%
$412,344
$412.3K
Market Conditions
NOI Build-Up for 2,600 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
$56.2K $21.60/SF
− Vacancy
−$3.1K −$1.21/SF
EGI
$53.0K $20.39/SF
− OpEx
−$15.9K −$6.12/SF
NOI
$37.1K $14.27/SF
Area
Union County, NJ
Vacancy
5.60%
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%
$742,220
Cap Rate 7%
$530,157
Cap Rate 9%
$412,344
Alternative Uses
Best Use
Retail
$530.2K
$463.9K – $618.5K
NOI $37,111 @ 7.0% cap · market cap 3.81%
Second Best
Industrial
$416.9K
$364.8K – $486.4K
NOI $29,183 @ 7.0% cap · market cap 2.99%
Theoretical Best
Office A
$678.9K
$594.1K – $792.1K
NOI $47,524 @ 7.0% cap · market cap 4.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
945
Businesses Nearby
66k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 76%
Dining 19%
Home Improvements & Furnishings 5%
ACME Markets
Groceries
50,212 visits/mo
0.5 miles
Dunkin' Donuts
Dining
10,579 visits/mo
0.5 miles
Johnstone Supply
Home Improvements & Furnishings
3,110 visits/mo
0.3 miles
Cha Cha Cha
Dining
1,946 visits/mo
0.1 miles
Demographics for 07033, NJ
8,427
Population
3,058
Households
2.8
Avg Household Size
41
Median Age
34%
College-Educated
91%
High-School Grad
2.1 sq mi
ZIP Area
4,013
Density / Sq Mi
$126,295
Median Household Income
$50,172
Median Earnings
$2,119
Median Rent
$521,100
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Full-service auto repair shop with equipment and client history included.
Where is this auto shop located?
The property is located at 305 S Michigan Ave Kenilworth, NJ.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Includes Real Estate; All necessary equipment included for a full service Auto Repair Shop.; Room to work on 6 cars inside heated/air conditioned bays.
