Four-Unit Professional Medical
For Sale
$1,399,000
515 Church St, Bound Brook, NJ 08805
Four-unit medical building for sale, fully leased, corner location.
Property Size7,226 SF
Lot Size0.60 Acres
Price / SF$193.61
Days on Market881
Property Features for 515 Church St
General Information
Standard status
Active
Size
7,226 SF
Lot size
0.60 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$20,167
Amenities
Central air
4+ Units Cooling
4+ Units Heating
Blacktop Driveway
Flat Roof
Parking Lot-Exclusive
Building Details
Year Built
1968
Listing Agency:
BHHS FOX & ROACH
(732) 469-1515
Listed By:
TIM DELUCCIA · License #8243435
Source:
Corcoran
Added: Mar 12, 2024
Changed: Aug 8
Last Checked: Aug 8 at 1:57PM
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 BHHS FOX & ROACH
Investment Insights
Based on property information with market context.
This is a four-unit professional medical building for sale, situated on a corner location. The property is 100% leased and offers abundant parking. It is suitable as an investment property or for an owner/user, particularly for medical or general office purposes. The location provides convenient access to Route 28, Route 22, I-287, and Robert Wood Johnson University Hospital Somerset. The property has a size of 7,226 square feet and a net operating income (NOI) of $89,626.48, representing a 6% capitalization rate.
Key Highlights
- 100% Leased: Provides immediate and consistent income stream.
- Excellent Investment Property: Highlighting its potential for financial returns.
- NOI: $89,626.48 and 6% CAP: Demonstrates strong financial performance.
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
$110,558
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
7.90%
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%
$2,211,160
$2.2M
Cap Rate 7%
$1,579,400
$1.6M
Cap Rate 9%
$1,228,422
$1.2M
Market Conditions
NOI Build-Up for 7,226 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
$216.8K $30.00/SF
− Vacancy
−$69.4K −$9.60/SF
EGI
$147.4K $20.40/SF
− OpEx
−$36.9K −$5.10/SF
NOI
$110.6K $15.30/SF
Area
Somerset 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%
$2,211,160
Cap Rate 7%
$1,579,400
Cap Rate 9%
$1,228,422
Alternative Uses
Best Use
Office B
$1.58M
$1.38M – $1.84M
NOI $110,558 @ 7.0% cap · market cap 7.90%
Second Best
Healthcare Medical
$1.54M
$1.34M – $1.79M
NOI $107,592 @ 7.0% cap · market cap 7.69%
Theoretical Best
Office A
$1.89M
$1.65M – $2.20M
NOI $132,080 @ 7.0% cap · market cap 9.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,017
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 08805, NJ
13,948
Population
5,524
Households
2.5
Avg Household Size
37
Median Age
33%
College-Educated
86%
High-School Grad
2.9 sq mi
ZIP Area
4,810
Density / Sq Mi
$84,201
Median Household Income
$41,874
Median Earnings
$1,859
Median Rent
$393,900
Median Home Value
Market
Vacancy Rate% for Office 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?
Medical Office Space - Four-unit medical building for sale, fully leased, corner location.
Where is this medical office space located?
The property is located at 515 Church St Bound Brook, NJ.
What is the asking price?
The asking price for this property is $1,399,000.
What are key features of this property?
This property features: 100% Leased: Provides immediate and consistent income stream.; Excellent Investment Property: Highlighting its potential for financial returns.; NOI: $89,626.48 and 6% CAP: Demonstrates strong financial performance.
