Updated Mixed-Use Building in
For Sale
$1,700,000
153 Ellison St, Paterson, NJ 07505
Nine-unit building with residential and commercial spaces in downtown Paterson.
Property Size5,300 SF
Lot Size0.12 Acres
Price / SF$320.75
Days on Market356
Property Features for 153 Ellison St
General Information
Standard status
Active
Size
5,300 SF
Lot size
0.12 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$48,907
Amenities
Central air
1 Unit Cooling
2 Units Heating
Central Air Cooling
Flat Roof
Level Lot
Radiant - Electric Heating
Rubberized Roof
Building Details
Year Built
1900
Listing Agency:
NICHOLAS REAL ESTATE AGENCY
(973) 340-1202
Listed By:
JUANA E. TORRES · License #238723
Source:
Corcoran
Added: Aug 22, 2025
Changed: Aug 10
Last Checked: Aug 11 at 9:18AM
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 NICHOLAS REAL ESTATE AGENCY
Investment Insights
Based on property information with market context.
This nine-unit building is located in the heart of downtown Paterson. The property features a mix of residential and commercial spaces, comprising five residential apartments and four commercial units. The residential units include one three-bedroom apartment, two two-bedroom apartments, and two one-bedroom apartments, all described as spacious. The property has undergone several updates and has one vacant unit available for immediate rental. Most tenants are currently on month-to-month leases, offering flexibility for new ownership. This property is presented as a potential investment opportunity.
Key Highlights
- 9‑unit building in downtown Paterson, featuring 5 residential and 4 commercial units.
- Recently obtained green card.
- One vacant unit is ready for immediate rental income.
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
$81,503
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
4.79%
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%
$1,630,060
$1.6M
Cap Rate 7%
$1,164,329
$1.2M
Cap Rate 9%
$905,589
$905.6K
Market Conditions
NOI Build-Up for 5,300 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
$159.0K $30.00/SF
− Vacancy
−$10.8K −$2.04/SF
EGI
$148.2K $27.96/SF
− OpEx
−$66.7K −$12.58/SF
NOI
$81.5K $15.38/SF
Area
Paterson, NJ
Vacancy
6.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
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%
$1,630,060
Cap Rate 7%
$1,164,329
Cap Rate 9%
$905,589
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.02M – $1.36M
NOI $81,503 @ 7.0% cap · market cap 4.79%
Second Best
Retail
$1.08M
$945.6K – $1.26M
NOI $75,648 @ 7.0% cap · market cap 4.45%
Theoretical Best
Office A
$1.38M
$1.21M – $1.61M
NOI $96,876 @ 7.0% cap · market cap 5.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,442
Businesses Nearby
Explore this area
Business Placement
Demographics for 07505, NJ
3,215
Population
1,692
Households
1.9
Avg Household Size
38
Median Age
12%
College-Educated
71%
High-School Grad
0.2 sq mi
ZIP Area
16,075
Density / Sq Mi
$33,311
Median Household Income
$33,520
Median Earnings
$1,113
Median Rent
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Nine-unit building with residential and commercial spaces in downtown Paterson.
Where is this apartment building located?
The property is located at 153 Ellison St Paterson, NJ.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: 9‑unit building in downtown Paterson, featuring 5 residential and 4 commercial units.; Recently obtained green card.; One vacant unit is ready for immediate rental income.
