Residential Income Building on Land
For Sale
$500,000
1604 State Route 27, Edison, NJ 08817
COMMERCIAL - Edison, NJ
Property Size2,212 SF
Lot Size0.25 Acres
Price / SF$226.04
Days on Market300
Property Features for 1604 State Route 27
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
GB
Bathrooms
3
Full bathrooms
2
Half bathrooms
1
Rooms
Bathroom 2, Bathroom 1, Bathroom 3
Parking
27
Parking features
Offsite, Assigned
Interior features
Carpeting
Appliances
Range/Oven, Refrigerator
Lot features
Commercial Area, Corner Lot, Highway Location
Directions
Route 27 south from 287 to 7th traffic light.
Standard status
Active
APN
050012500000000501
Size
2,212 SF
Lot size
0.25 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
1115696
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Baseboard
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Building Details
Year built
1952
Floors in Building
2
Number of units
2
Flooring type
Wood, Carpet
Building materials
Vinyl Siding
Roof type
Asphalt
Listing Agency:
AMERICA AGENCY
(800) 541-1999
Listed By:
Louis Trenta
(732) 985-7894
Added: Oct 28, 2025
Changed: Aug 4
Last Checked: Aug 23 at 6:06AM
MLS# 2606621R
Copyright © 2026 All Jersey MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This land lease property includes two residential rentals and an owner-occupied retail space. The building has separate heat and utilities for the owner-occupied portion, while tenant utilities are separately metered. The owner-occupied retail space is approximately 1,300 square feet and includes a basement office suitable for storage, with a small conference room area.
An office is currently located on the first floor and could support small retail uses, including bubble tea, take-out food, and other service-oriented concepts. The property is zoned GB and sits on a 0.2456-acre lot. The building was constructed in 1952 and includes electric heating with baseboard, central air, and carpeting and wood flooring.
Parking can accommodate almost 27 cars. The term is described as a 25-year land lease with the option to purchase every 5 years, and there is an option referenced for additional building lots ready for construction.
An office is currently located on the first floor and could support small retail uses, including bubble tea, take-out food, and other service-oriented concepts. The property is zoned GB and sits on a 0.2456-acre lot. The building was constructed in 1952 and includes electric heating with baseboard, central air, and carpeting and wood flooring.
Parking can accommodate almost 27 cars. The term is described as a 25-year land lease with the option to purchase every 5 years, and there is an option referenced for additional building lots ready for construction.
Key Highlights
- Zoned GB residential income building with land lease terms
- Two residential rentals plus an owner‑occupied retail space
- Owner‑occupied retail space about 1,300 SF with basement office
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
$36,060
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
7.21%
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%
$721,200
$721.2K
Cap Rate 7%
$515,143
$515.1K
Cap Rate 9%
$400,667
$400.7K
Market Conditions
NOI Build-Up for 2,212 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
$69.0K $31.20/SF
− Vacancy
−$3.5K −$1.56/SF
EGI
$65.6K $29.64/SF
− OpEx
−$29.5K −$13.34/SF
NOI
$36.1K $16.30/SF
Area
Edison, NJ
Vacancy
5.00%
Lease Rate
$31.20 /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%
$721,200
Cap Rate 7%
$515,143
Cap Rate 9%
$400,667
Alternative Uses
Best Use
Apartment 5plus
$515.1K
$450.8K – $601.0K
NOI $36,060 @ 7.0% cap · market cap 7.21%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$716.9K
$627.3K – $836.4K
NOI $50,183 @ 7.0% cap · market cap 10.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,108
Businesses Nearby
Explore this area
Business Placement
Demographics for 08817, NJ
48,243
Population
17,260
Households
2.8
Avg Household Size
37
Median Age
49%
College-Educated
91%
High-School Grad
10.6 sq mi
ZIP Area
4,551
Density / Sq Mi
$109,734
Median Household Income
$54,631
Median Earnings
$1,946
Median Rent
$411,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Land lease opportunity featuring residential rentals plus an owner-occupied retail space, zoned GB.
Where is this residential income property located?
The property is located at 1604 State Route 27 Edison, NJ.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Zoned GB residential income building with land lease terms; Two residential rentals plus an owner‑occupied retail space; Owner‑occupied retail space about 1,300 SF with basement office
