Listing Agency: FATHOM REALTY NJ Show Phone

Listed By: LOIS DECARO Show Phone

Source: Corcoran

Added: May 2, 2023 Changed: Sep 10 Last Checked: Sep 11 at 8:29AM

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Investment Insights

Based on property information with market context.

This is an 8,000 +/- square foot freestanding building situated in a high-traffic location on Route 10 at a traffic light intersection, offering excellent visibility. The property, once renovated, has the potential to become a showpiece, contributing to the town's history. Previously a bank, the building includes a vault and a drive-through that has been bricked. Its location provides close proximity to routes 80, 287, 280, 24, and 46. Plans, architectural drawings, and a survey are available. The property allows for the possibility of 28 parking spaces. Zoned B-10, the location permits many retail and office uses. The town is not allowing restaurant use. The buyer should verify all information, any remaining approvals needed, and permitted uses with the township.

Key Highlights

• Prime high traffic location at a traffic light intersection with great visibility on Rt. 10
• 8000 +/- square feet freestanding building suitable for renovation
• Close proximity to routes 80, 287, 280, 24, and 46

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

$122,342

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

8.74%

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%

$2,446,840 $2.4M

Cap Rate 7%

$1,747,743 $1.7M

Cap Rate 9%

$1,359,356 $1.4M

Market Conditions

NOI Build-Up for 8,000 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

$172.8K $21.60/SF

− Vacancy

−$9.7K −$1.21/SF

EGI

$163.1K $20.39/SF

− OpEx

−$40.8K −$5.10/SF

NOI

$122.3K $15.29/SF

Area

Morris County, NJ

Vacancy

5.60%

Lease Rate

$21.60 /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%

$2,446,840

Cap Rate 7%

$1,747,743

Cap Rate 9%

$1,359,356

Alternative Uses

Best Use

Specialty Retail

$1.75M

$1.53M – $2.04M (±1% cap)

NOI $122,342 @ 7.0% cap · market cap 8.74%

Second Best

Retail

$1.63M

$1.43M – $1.90M (±1% cap)

NOI $114,186 @ 7.0% cap · market cap 8.16%

Theoretical Best

Office A

$2.09M

$1.83M – $2.44M (±1% cap)

NOI $146,227 @ 7.0% cap · market cap 10.44%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Banks

Suggested Use

Top Pick Real Estate Agency Parking Lot & Garage Hair Salon Grocery & Convenience Store Barber Shop Locksmith

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

454

Businesses Nearby

32k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 82% Dining 18%

QuickChek Shops & Services

20,279 visits/mo 0.2 miles

Dunkin' Donuts Dining

5,585 visits/mo 0.2 miles

Shell Shops & Services

4,501 visits/mo 0.2 miles

Exxon Shops & Services

1,414 visits/mo 0.4 miles

Demographics for 07981, NJ

9,051

Population

3,723

Households

2.4

Avg Household Size

48

Median Age

55%

College-Educated

98%

High-School Grad

6.0 sq mi

ZIP Area

1,509

Density / Sq Mi

$153,329

Median Household Income

$81,864

Median Earnings

$2,619

Median Rent

$611,300

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

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What type of property is this? Where is this banks located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bank - 8,000+/- SF building on Route 10 with high visibility.

Where is this bank located?

The property is located at 500 Route 10 Whippany, NJ.

What is the asking price?

The asking price for this property is $1,400,000.

What are key features of this property?

This property features: Prime high traffic location at a traffic light intersection with great visibility on Rt. 10; 8000 +/- square feet freestanding building suitable for renovation; Close proximity to routes 80, 287, 280, 24, and 46