Medical Office with Expansion
For Sale
$1,900,000
137-139 Prospect St, Newark, NJ 07105
Includes exam rooms, reception, waiting area, and additional upper- and lower-level space.
Property Size4,000 SF
Price / SF$475
Days on Market33
Property Features for 137-139 Prospect St
General Information
Standard status
Active
Size
4,000 SF
Additional Details
Floor
First Floor
Public Transit
Yes
Land Use
medical, parking
Office Units
1
Building Details
Year Built
9999
Tenancy
Multi
Listing Agency:
EXIT REALTY LUCKY ASSOCIATES
(973) 817-7700
Listed By:
PATRICK DWYER · License #293621
Source:
Goldstandardrealty
Added: Jul 27
Changed: Aug 28
Last Checked: Aug 25 at 4:44AM
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 EXIT REALTY LUCKY ASSOCIATES
Investment Insights
Based on property information with market context.
This medical office property includes an established walk-in urgent medical clinic that has operated for over 35 years. The approximately 2000 sq.ft. first floor contains 4 exam rooms, a kitchen area, private office, reception, and waiting room. Additional space is located on the second floor and in the finished basement, with central HVAC throughout the building.
The second floor includes two apartments with the ability to expand. At 139 Prospect, the adjoining 30x100 vacant lot is currently used for parking and a garage and is identified as a buildable parcel in the MX-1 zone. The property is blocks from Newark Penn Station.
The second floor includes two apartments with the ability to expand. At 139 Prospect, the adjoining 30x100 vacant lot is currently used for parking and a garage and is identified as a buildable parcel in the MX-1 zone. The property is blocks from Newark Penn Station.
Key Highlights
- Established walk‑in urgent medical clinic operating for over 35 years
- Approximately 2000 sq.ft. first floor with 4 exam rooms, kitchen area, private office, reception, and waiting room
- Two second‑floor apartments with the ability to expand
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
$72,576
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
3.82%
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%
$1,451,520
$1.5M
Cap Rate 7%
$1,036,800
$1.0M
Cap Rate 9%
$806,400
$806.4K
Market Conditions
NOI Build-Up for 4,000 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
$134.4K $33.60/SF
− Vacancy
−$13.4K −$3.36/SF
EGI
$121.0K $30.24/SF
− OpEx
−$48.4K −$12.10/SF
NOI
$72.6K $18.14/SF
Area
ZIP 07105
Vacancy
10.00%
Lease Rate
$33.60 /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%
$1,451,520
Cap Rate 7%
$1,036,800
Cap Rate 9%
$806,400
Alternative Uses
Best Use
Healthcare Medical
$1.04M
$907.2K – $1.21M
NOI $72,576 @ 7.0% cap · market cap 3.82%
Second Best
Office B
$986.1K
$862.9K – $1.15M
NOI $69,030 @ 7.0% cap · market cap 3.63%
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,147 @ 7.0% cap · market cap 5.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
5,988
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07105, NJ
50,870
Population
20,608
Households
2.5
Avg Household Size
35
Median Age
15%
College-Educated
70%
High-School Grad
4.6 sq mi
ZIP Area
11,059
Density / Sq Mi
$55,752
Median Household Income
$33,175
Median Earnings
$1,600
Median Rent
$445,900
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?
Medical Office Space - Includes exam rooms, reception, waiting area, and additional upper- and lower-level space.
Where is this medical office space located?
The property is located at 137-139 Prospect St Newark, NJ.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Established walk‑in urgent medical clinic operating for over 35 years; Approximately 2000 sq.ft. first floor with 4 exam rooms, kitchen area, private office, reception, and waiting room; Two second‑floor apartments with the ability to expand
