Multifamily Residence in Prime
For Sale
$1,600,000
Pending
163 Park St, Montclair, NJ 07042
Spacious multifamily property near Watchung Plaza and NYC train.
Property Size4,945 SF
Lot Size0.80 Acres
Days on Market328
Property Features for 163 Park St
General Information
Standard status
Pending
Size
4,945 SF
Lot size
0.80 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$29,520
Amenities
Asphalt Shingle Roof
1 Unit Heating
Blacktop Driveway
Level Lot
Off-Street Parking
Radiators - Steam Heating
Building Details
Year Built
1887
Listing Agency:
COMPASS NEW JERSEY LLC
(973) 310-7360
Listed By:
SUSAN LOVIT
Source:
Corcoran
Added: Sep 18, 2025
Changed: Aug 8
Last Checked: Jul 23 at 7:13AM
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 multifamily residence, currently configured as a 5-unit investment property, is situated on a spacious, flat lot within a single-family zone. The property includes ample parking, featuring 4 garage spaces (one currently rented for $125 per month) and outdoor spots for each tenant. Located approximately 0.3 miles from Watchung Plaza shops, cafes, and the NYC direct train, it is also near the Walnut St Farmer's Market. The property offers the flexibility to remain a 5-family residence or be converted into a single, 2, 3, or 4-family home. Each unit has separate utilities, and paid laundry is available in the basement. The 4945 square foot property is surrounded by attractive homes, making the neighborhood suitable for a single-family conversion or new construction. Four units are currently rented on a month-to-month basis.
Key Highlights
- Prime location: just 0.3 miles to Watchung Plaza shops, cafes, and NYC direct train.
- Multifamily residence (5 units) offers income potential in a desirable single‑family zone.
- Spacious, flat lot with ample parking including 4 garage spaces (one rented for $125/month) and additional outdoor spots.
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
$76,044
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
4.75%
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%
$1,520,880
$1.5M
Cap Rate 7%
$1,086,343
$1.1M
Cap Rate 9%
$844,933
$844.9K
Market Conditions
NOI Build-Up for 4,945 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
$148.4K $30.00/SF
− Vacancy
−$10.1K −$2.04/SF
EGI
$138.3K $27.96/SF
− OpEx
−$62.2K −$12.58/SF
NOI
$76.0K $15.38/SF
Area
Essex County, 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%
$1,520,880
Cap Rate 7%
$1,086,343
Cap Rate 9%
$844,933
Alternative Uses
Best Use
Apartment 5plus
$1.09M
$950.6K – $1.27M
NOI $76,044 @ 7.0% cap · market cap 4.75%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.29M
$1.13M – $1.51M
NOI $90,387 @ 7.0% cap · market cap 5.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,369
Businesses Nearby
Explore this area
Business Placement
Demographics for 07042, NJ
27,384
Population
11,682
Households
2.3
Avg Household Size
39
Median Age
67%
College-Educated
96%
High-School Grad
3.8 sq mi
ZIP Area
7,206
Density / Sq Mi
$127,083
Median Household Income
$75,856
Median Earnings
$2,017
Median Rent
$733,100
Median Home Value
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 - Spacious multifamily property near Watchung Plaza and NYC train.
Where is this apartment building located?
The property is located at 163 Park St Montclair, NJ.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Prime location: just 0.3 miles to Watchung Plaza shops, cafes, and NYC direct train.; Multifamily residence (5 units) offers income potential in a desirable single‑family zone.; Spacious, flat lot with ample parking including 4 garage spaces (one rented for $125/month) and additional outdoor spots.
