Turnkey Restaurant Opportunity in
For Sale
$2,600,000
15 S Orange Ave, South Orange, NJ 07079
Two-story, fully equipped restaurant near train station, delivered vacant.
Property Size5,532 SF
Price / SF$469.99
Days on Market480
Property Features for 15 S Orange Ave
General Information
Standard status
Active
Size
5,532 SF
Taxes and HOA fees
Annual Taxes
$62,392
Building Details
Year Built
1900
Listing Agency:
COMPASS NEW JERSEY LLC
Listed By:
ADAM BICKOFF
Source:
Corcoran
Added: May 1, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 COMPASS NEW JERSEY LLC
Investment Insights
Based on property information with market context.
This two-story masonry building, originally built as a bank, offers approximately 7,980 sq ft of space and features two fully equipped kitchens. The restaurant can accommodate 110 patrons, including bar seating for 25, two high-top tables in the bar area, and four additional high-top tables in a separate area. The second floor provides event space with a capacity of up to 70 people, making it suitable for catered events. The property is located one block from the South Orange downtown train station in a high-traffic retail location with new residential units nearby. The building has open spans and classic woodwork, including a fireplace and bars. Delivered vacant at closing, the property presents an opportunity for an experienced restaurateur, brewer, or bar operator, or could be repurposed for retail, a pharmacy, or a QSR. The solid two-story masonry structure offers the potential to add two more floors for commercial or residential use, subject to city and engineering verification. The purchase price excludes the business or trade name. The property has a size of 5532 sqft.
Key Highlights
- Prime downtown location in South Orange, one block from the train station, with high visibility and traffic.
- Turnkey restaurant opportunity in a two‑story, 7,980 sq ft masonry building, delivered vacant at closing.
- Features two fully equipped kitchens and accommodates 110 patrons plus bar seating.
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
$84,600
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
3.25%
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%
$1,692,000
$1.7M
Cap Rate 7%
$1,208,571
$1.2M
Cap Rate 9%
$940,000
$940.0K
Market Conditions
NOI Build-Up for 5,532 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
$119.5K $21.60/SF
− Vacancy
−$6.7K −$1.21/SF
EGI
$112.8K $20.39/SF
− OpEx
−$28.2K −$5.10/SF
NOI
$84.6K $15.29/SF
Area
Essex 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%
$1,692,000
Cap Rate 7%
$1,208,571
Cap Rate 9%
$940,000
Alternative Uses
Best Use
Specialty Retail
$1.21M
$1.06M – $1.41M
NOI $84,600 @ 7.0% cap · market cap 3.25%
Second Best
Retail
$1.13M
$987.0K – $1.32M
NOI $78,960 @ 7.0% cap · market cap 3.04%
Theoretical Best
Office A
$1.44M
$1.26M – $1.69M
NOI $101,116 @ 7.0% cap · market cap 3.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,456
Businesses Nearby
17k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Exxon
Shops & Services
7,537 visits/mo
0.1 miles
Chase Bank
Shops & Services
6,109 visits/mo
0.0 miles
Wells Fargo
Shops & Services
2,304 visits/mo
0.0 miles
Napa Auto Parts
Shops & Services
622 visits/mo
0.2 miles
Demographics for 07079, NJ
18,597
Population
6,131
Households
3
Avg Household Size
34
Median Age
76%
College-Educated
98%
High-School Grad
2.9 sq mi
ZIP Area
6,413
Density / Sq Mi
$184,769
Median Household Income
$75,829
Median Earnings
$2,067
Median Rent
$808,100
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Restaurant - Two-story, fully equipped restaurant near train station, delivered vacant.
Where is this restaurant located?
The property is located at 15 S Orange Ave South Orange, NJ.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: Prime downtown location in South Orange, one block from the train station, with high visibility and traffic.; Turnkey restaurant opportunity in a two‑story, 7,980 sq ft masonry building, delivered vacant at closing.; Features **two fully equipped kitchens** and accommodates 110 patrons plus bar seating.
