Commercially Zoned Historic
For Sale
$429,000
197 Drum Point Road, Brick, NJ 08723
Versatile commercially zoned property with historic charm, suitable for various uses.
Property Size1,498 SF
Price / SF$286.38
Days on Market476
Property Features for 197 Drum Point Road
General Information
Standard status
Active
Size
1,498 SF
Taxes and HOA fees
Annual Taxes
$5,605
Building Details
Year Built
1910
Listing Agency:
DIANE TURTON, REALTORS-BRICK
(732) 920-9559
Listed By:
EDWARD A VESPI · License #7871867
Source:
Corcoran
Added: May 12, 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 DIANE TURTON, REALTORS-BRICK
Investment Insights
Based on property information with market context.
This versatile commercially zoned property offers a rare opportunity with historic charm. The classic shore colonial has been beautifully preserved. Zoned and suitable for most professionals and commercial uses, it is ideal for investors, professional services, small businesses, creative studios, or a live/work configuration. Known as the Cranberry House, the property features rich original details throughout, including hardwood floors and beam ceilings. A large walk-up attic provides storage space. There is also a detached garage with an attached workshop suitable for hobbies, studio, or creative use. The township zoning is B-2. The property includes an oversized parking lot with room for expansion, an outdoor workspace, or future development. It is located on a highly visible corner, close to beaches, dining, retail, and main traffic corridors. The property size is 1498 square feet.
Key Highlights
- Commercially Zoned (B‑2) in a High Visibility Corner Location
- Historic Charm and Rich Original Details like Hardwood Floors and Beam Ceilings
- Oversized Parking Lot with Room for Expansion/Development
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
$22,919
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
5.34%
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%
$458,380
$458.4K
Cap Rate 7%
$327,414
$327.4K
Cap Rate 9%
$254,656
$254.7K
Market Conditions
NOI Build-Up for 1,498 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
$44.9K $30.00/SF
− Vacancy
−$14.4K −$9.60/SF
EGI
$30.6K $20.40/SF
− OpEx
−$7.6K −$5.10/SF
NOI
$22.9K $15.30/SF
Area
Ocean County, NJ
Vacancy
32.00%
Lease Rate
$30.00 /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%
$458,380
Cap Rate 7%
$327,414
Cap Rate 9%
$254,656
Alternative Uses
Best Use
Office B
$327.4K
$286.5K – $382.0K
NOI $22,919 @ 7.0% cap · market cap 5.34%
Second Best
Retail
$305.4K
$267.3K – $356.4K
NOI $21,381 @ 7.0% cap · market cap 4.98%
Theoretical Best
Office A
$391.2K
$342.3K – $456.4K
NOI $27,381 @ 7.0% cap · market cap 6.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
533
Businesses Nearby
Explore this area
Business Placement
Demographics for 08723, NJ
31,272
Population
14,075
Households
2.2
Avg Household Size
45
Median Age
30%
College-Educated
95%
High-School Grad
12.0 sq mi
ZIP Area
2,606
Density / Sq Mi
$103,953
Median Household Income
$54,165
Median Earnings
$1,652
Median Rent
$374,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Versatile commercially zoned property with historic charm, suitable for various uses.
Where is this office units located?
The property is located at 197 Drum Point Road Brick, NJ.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: Commercially Zoned (B‑2) in a High Visibility Corner Location; Historic Charm and Rich Original Details like Hardwood Floors and Beam Ceilings; Oversized Parking Lot with Room for Expansion/Development
