Renovated Mixed-Use Building For
For Sale
$875,000
173 3Rd St, Elizabeth, NJ 07206
Renovated mixed-use building with commercial space and residential units.
Property Size2,300 SF
Price / SF$380.43
Days on Market106
Property Features for 173 3Rd St
General Information
Standard status
Active
Size
2,300 SF
Property subtype
Multi Family
Building Details
Year Built
1924
Listing Agency:
Better Homes and Gardens RE Elite
(908) 316-8530
Listed By:
JAZMINE CLAUSEN-SOIR · License #1750907
Source:
Elliman
Added: May 15
Changed: Jul 6
Last Checked: Aug 26 at 12:34PM
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 Better Homes and Gardens RE Elite
Investment Insights
Based on property information with market context.
The renovated mixed-use brick building at 173-175 Third St is located in the Elizabeth Port section of Elizabeth. The property offers approximately 2,300 sq ft of commercial space on the first floor, suitable for a variety of uses. The second floor includes two fully renovated residential units, each offering 3 bedrooms and modern eat-in kitchens with brand new flooring throughout and new bathrooms. The building is equipped with central air and heat throughout. The location is near major highways, shopping centers, Newark Liberty International Airport, IKEA, Jersey Gardens Mall, and public transportation, offering accessibility to surrounding areas and NYC commuter routes. The walk score is 84, indicating it is very walkable, the bike score is 53, indicating it is bikeable, and the transit score is 58, indicating good transit.
Key Highlights
- Renovated mixed‑use building with commercial space and residential units
- Two fully renovated 3‑bedroom residential units feature modern eat‑in kitchens and new bathrooms
- Approximately 2,300 sq ft of commercial space suitable for various uses
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
$31,740
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
3.63%
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%
$634,800
$634.8K
Cap Rate 7%
$453,429
$453.4K
Cap Rate 9%
$352,667
$352.7K
Market Conditions
NOI Build-Up for 2,300 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
$55.2K $24.00/SF
− Vacancy
−$4.4K −$1.92/SF
EGI
$50.8K $22.08/SF
− OpEx
−$19.0K −$8.28/SF
NOI
$31.7K $13.80/SF
Area
Elizabeth, NJ
Vacancy
8.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$634,800
Cap Rate 7%
$453,429
Cap Rate 9%
$352,667
Alternative Uses
Best Use
Mixed Use
$453.4K
$396.8K – $529.0K
NOI $31,740 @ 7.0% cap · market cap 3.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$851.9K
$745.4K – $993.9K
NOI $59,634 @ 7.0% cap · market cap 6.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,286
Businesses Nearby
Explore this area
Business Placement
Demographics for 07206, NJ
30,982
Population
9,712
Households
3.2
Avg Household Size
31
Median Age
8%
College-Educated
64%
High-School Grad
1.8 sq mi
ZIP Area
17,212
Density / Sq Mi
$60,992
Median Household Income
$38,541
Median Earnings
$1,543
Median Rent
$339,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Renovated mixed-use building with commercial space and residential units.
Where is this mixed-use property located?
The property is located at 173 3Rd St Elizabeth, NJ.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Renovated mixed‑use building with commercial space and residential units; Two fully renovated 3‑bedroom residential units feature modern eat‑in kitchens and new bathrooms; Approximately 2,300 sq ft of commercial space suitable for various uses
