Thriving Laundromat with Apartments
For Sale
$789,000
Pending
121 S Pavilion Ave, Riverside, NJ 08075
Multi-purpose property featuring a laundromat and two apartments.
Property Size3,700 SF
Lot Size0.04 Acres
Days on Market204
Property Features for 121 S Pavilion Ave
General Information
Standard status
Pending
Size
3,700 SF
Lot size
0.04 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,512
Amenities
Downtown
Building Details
Year Built
1965
Listing Agency:
SMIRES & ASSOCIATES
(609) 298-9888
Listed By:
KEVIN KERINS
(609) 903-8131
Source:
Corcoran
Added: Feb 12
Changed: Aug 8
Last Checked: Jul 23 at 9:42AM
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 SMIRES & ASSOCIATES
Investment Insights
Based on property information with market context.
This 3700 sq/ft multi-purpose property presents an investment opportunity, featuring a thriving laundromat with two established apartments above. The laundromat is equipped with energy-efficient washers and dryers, totaling 17 washers and 26 dryers, along with 2 change machines and 7 vending machines. It also includes a handicap-accessible bathroom, storage room, security system, TVs, a fire alarm system, folding stations, and a basement office. The design allows access to the back of all laundry machines, with concrete supports in the basement. All three units have separate utilities. The two apartments above the laundromat have separate entrances and tenants. Apartment 1 includes 1 bedroom, 1 full bath, a kitchenette, and baseboard heat. Apartment 2 features 3 bedrooms, a large living room, central air, and new flooring and carpet. The property has a newer roof installed in 2022, along with new hot water heaters and a furnace. It is located in downtown Riverside, near the municipal building and post office, and is surrounded by local businesses, including dentists, restaurants, and accountants.
Key Highlights
- Thriving laundromat business included, featuring 17 washers and 26 dryers.
- Two established apartments above the laundromat provide immediate rental income.
- Newer roof (2022), new hot water heaters, and furnace minimize potential maintenance costs.
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
$56,899
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
7.21%
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%
$1,137,980
$1.1M
Cap Rate 7%
$812,843
$812.8K
Cap Rate 9%
$632,211
$632.2K
Market Conditions
NOI Build-Up for 3,700 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
$111.0K $30.00/SF
− Vacancy
−$7.5K −$2.04/SF
EGI
$103.5K $27.96/SF
− OpEx
−$46.6K −$12.58/SF
NOI
$56.9K $15.38/SF
Area
Paterson, NJ
Vacancy
6.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
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%
$1,137,980
Cap Rate 7%
$812,843
Cap Rate 9%
$632,211
Alternative Uses
Best Use
Apartment 5plus
$812.8K
$711.2K – $948.3K
NOI $56,899 @ 7.0% cap · market cap 7.21%
Second Best
Retail
$754.4K
$660.1K – $880.2K
NOI $52,811 @ 7.0% cap · market cap 6.69%
Theoretical Best
Office A
$966.1K
$845.4K – $1.13M
NOI $67,630 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
518
Businesses Nearby
Explore this area
Business Placement
Demographics for 08075, NJ
30,327
Population
12,092
Households
2.5
Avg Household Size
39
Median Age
38%
College-Educated
92%
High-School Grad
9.9 sq mi
ZIP Area
3,063
Density / Sq Mi
$94,576
Median Household Income
$47,979
Median Earnings
$1,427
Median Rent
$288,200
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?
Retail space - Multi-purpose property featuring a laundromat and two apartments.
Where is this retail space located?
The property is located at 121 S Pavilion Ave Riverside, NJ.
What is the asking price?
The asking price for this property is $789,000.
What are key features of this property?
This property features: Thriving laundromat business included, featuring **17 washers and 26 dryers**.; Two established apartments above the laundromat provide immediate rental income.; Newer roof (2022), new hot water heaters, and furnace minimize potential maintenance costs.
