Mixed-Use Property in
For Sale
$750,000
Pending
196 Bay Avenue, Highlands, NJ 07732
Versatile property with retail space and residential income potential.
Property Size3,200 SF
Lot Size0.09 Acres
Days on Market351
Property Features for 196 Bay Avenue
General Information
Standard status
Pending
Size
3,200 SF
Lot size
0.09 Acres
Property subtype
Commercial
Listing Agency:
O'BRIEN REALTY, LLC
(732) 229-3532
Listed By:
STEPHEN CANDELINO
Source:
Corcoran
Added: Aug 22, 2025
Changed: Jul 6
Last Checked: Jul 23 at 6:58AM
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 O'BRIEN REALTY, LLC
Investment Insights
Based on property information with market context.
Located in Highlands, this mixed-use property offers visibility and income streams. The first floor provides flexible space suitable for retail, office, or restaurant use. The second floor features a 1,500 sq. ft. apartment with 4 bedrooms. Situated in a newly re-zoned district that allows for additional building height, the property presents a value-add opportunity. Investors can enhance returns by dividing the existing apartment into two 2-bedroom units and adding another story with two additional 2-bedroom apartments. Rental demand in Highlands remains strong due to proximity to the Sea Streak Ferry and the Jersey Shore, with 2-bedroom units averaging $2,500+ per month. The property size is 3,200 sq. ft.
Key Highlights
- Prime location in the heart of Highlands, near the Sea Streak Ferry and Jersey Shore.
- Versatile mixed‑use property with retail/office/restaurant space on the first floor and a 4‑bedroom apartment on the second floor.
- Value‑add opportunity to increase income by dividing the existing apartment into two 2‑bedroom units.
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
$49,210
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
6.56%
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%
$984,200
$984.2K
Cap Rate 7%
$703,000
$703.0K
Cap Rate 9%
$546,778
$546.8K
Market Conditions
NOI Build-Up for 3,200 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
$96.0K $30.00/SF
− Vacancy
−$6.5K −$2.04/SF
EGI
$89.5K $27.96/SF
− OpEx
−$40.3K −$12.58/SF
NOI
$49.2K $15.38/SF
Area
Monmouth 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%
$984,200
Cap Rate 7%
$703,000
Cap Rate 9%
$546,778
Alternative Uses
Best Use
Apartment 5plus
$703.0K
$615.1K – $820.2K
NOI $49,210 @ 7.0% cap · market cap 6.56%
Second Best
Retail
$652.5K
$570.9K – $761.2K
NOI $45,674 @ 7.0% cap · market cap 6.09%
Theoretical Best
Office A
$835.6K
$731.1K – $974.9K
NOI $58,491 @ 7.0% cap · market cap 7.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
329
Businesses Nearby
Explore this area
Business Placement
Demographics for 07732, NJ
4,710
Population
3,040
Households
1.5
Avg Household Size
49
Median Age
54%
College-Educated
91%
High-School Grad
3.8 sq mi
ZIP Area
1,239
Density / Sq Mi
$90,205
Median Household Income
$72,484
Median Earnings
$1,841
Median Rent
$396,800
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?
Mixed-use property - Versatile property with retail space and residential income potential.
Where is this mixed-use property located?
The property is located at 196 Bay Avenue Highlands, NJ.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Prime location in the heart of Highlands, near the Sea Streak Ferry and Jersey Shore.; Versatile mixed‑use property with retail/office/restaurant space on the first floor and a 4‑bedroom apartment on the second floor.; Value‑add opportunity to increase income by dividing the existing apartment into two 2‑bedroom units.
