Medical/Commercial Building Investment
For Sale
$3,995,000
110 S Grove St, East Orange, NJ 07018
Fully occupied medical/commercial building with long-term tenants and income potential.
Property Size24,000 SF
Lot Size0.67 Acres
Price / SF$166.46
Days on Market154
Property Features for 110 S Grove St
General Information
Standard status
Active
Size
24,000 SF
Lot size
0.67 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$143,223
Building Details
Building Size
24,000 SF
Year Built
1980
Stories
3
Units
3
Listing Agency:
KELLER WILLIAMS REALTY
(908) 220-3484
Listed By:
OLATUBOSUN MODILE · License #287397
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 9 at 6:46AM
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 KELLER WILLIAMS REALTY
Investment Insights
Based on property information with market context.
This commercial building presents a medical investment or owner-occupied opportunity. The property is fully occupied by three long-term anchor tenants, encompassing 24,000 square feet on a 0.67-acre lot. The building is equipped with two elevators, loading docks, and a generator. There are 64 parking spaces, with the potential to generate additional income on a month-to-month basis. The property is conveniently located near major highways, RWJ, Cooperman Barnabas Medical Center, Clara Maass Medical Center, Newark Beth Israel Medical Center, and Overlook Medical Center. The tenants include Fresenius Dialysis Center, the State of New Jersey, and the City of East Orange. There is also the possibility to build an apartment complex.
Key Highlights
- 8% CAP Rate on Investment
- Fully occupied with three long‑term anchor tenants: Fresenius Dialysis Center, State of New Jersey, City of East Orange
- 24,000 sq ft building on .67 acre
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
$357,350
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
8.94%
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%
$7,147,000
$7.1M
Cap Rate 7%
$5,105,000
$5.1M
Cap Rate 9%
$3,970,556
$4.0M
Market Conditions
NOI Build-Up for 24,000 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
$633.6K $26.40/SF
− Vacancy
−$38.0K −$1.58/SF
EGI
$595.6K $24.82/SF
− OpEx
−$238.2K −$9.93/SF
NOI
$357.4K $14.89/SF
Area
Essex County, NJ
Vacancy
6.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$7,147,000
Cap Rate 7%
$5,105,000
Cap Rate 9%
$3,970,556
Alternative Uses
Best Use
Healthcare Medical
$5.10M
$4.47M – $5.96M
NOI $357,350 @ 7.0% cap · market cap 8.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.27M
$5.48M – $7.31M
NOI $438,682 @ 7.0% cap · market cap 10.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,353
Businesses Nearby
Explore this area
Business Placement
Demographics for 07018, NJ
30,429
Population
13,107
Households
2.3
Avg Household Size
36
Median Age
25%
College-Educated
86%
High-School Grad
1.7 sq mi
ZIP Area
17,899
Density / Sq Mi
$59,039
Median Household Income
$39,630
Median Earnings
$1,410
Median Rent
$314,100
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical center - Fully occupied medical/commercial building with long-term tenants and income potential.
Where is this medical center located?
The property is located at 110 S Grove St East Orange, NJ.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: 8% CAP Rate on Investment; Fully occupied with three long‑term anchor tenants: Fresenius Dialysis Center, State of New Jersey, City of East Orange; 24,000 sq ft building on .67 acre
