Mixed-Use Building with
For Sale
$2,095,000
2 E Passaic Ave, Nutley, NJ 07110
Mixed-use property featuring a restaurant/bar and four residential apartments.
Property Size7,000 SF
Price / SF$299.29
Days on Market156
Property Features for 2 E Passaic Ave
General Information
Standard status
Active
Size
7,000 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$31,805
Amenities
Central air
2 Units Cooling
2 Units Heating
Baseboard - Hotwater Heating
Blacktop Driveway
Central Air Cooling
Corner
Flat Roof
Level Lot
Lighting
Parking Lot-Exclusive
Radiators - Steam Heating
Building Details
Year Built
1908
Listing Agency:
KELLER WILLIAMS SUBURBAN REALTY
(973) 251-0100
Listed By:
FRANK CONTURSO · License #1003909
Source:
Corcoran
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 8 at 4:46AM
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 KELLER WILLIAMS SUBURBAN REALTY
Investment Insights
Based on property information with market context.
This mixed-use building features a restaurant and bar business with four residential apartments. The restaurant and bar, established nearly a century ago, has a total patron capacity of 186, including 75 in the dining room. It features an extensive craft beer list with 30 taps, an outdoor patio, live entertainment, catering, private parties, a regulation shuffleboard table, and 22 large screen TVs. The kitchen and restaurant were renovated in 2015. The AC systems were updated in 2022, and the boiler was replaced in 2020. The residential apartments are well-maintained and fully occupied. The property size is 7000 square feet.
Key Highlights
- Thriving, iconic restaurant/bar business (The Old Canal Inn) established nearly a century ago with a strong customer base and total patron capacity of 186.
- Includes 4 fully occupied, well‑maintained residential apartments, providing immediate rental income.
- Turn‑key, profitable operation with strong potential for added growth.
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
$107,050
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
5.11%
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%
$2,141,000
$2.1M
Cap Rate 7%
$1,529,286
$1.5M
Cap Rate 9%
$1,189,444
$1.2M
Market Conditions
NOI Build-Up for 7,000 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
$151.2K $21.60/SF
− Vacancy
−$8.5K −$1.21/SF
EGI
$142.7K $20.39/SF
− OpEx
−$35.7K −$5.10/SF
NOI
$107.0K $15.29/SF
Area
Essex County, NJ
Vacancy
5.60%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$2,141,000
Cap Rate 7%
$1,529,286
Cap Rate 9%
$1,189,444
Alternative Uses
Best Use
Specialty Retail
$1.53M
$1.34M – $1.78M
NOI $107,050 @ 7.0% cap · market cap 5.11%
Second Best
Mixed Use
$1.38M
$1.21M – $1.61M
NOI $96,600 @ 7.0% cap · market cap 4.61%
Theoretical Best
Office A
$1.83M
$1.60M – $2.13M
NOI $127,949 @ 7.0% cap · market cap 6.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
792
Businesses Nearby
30k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 92%
Shops & Services 8%
McDonald's
Dining
27,661 visits/mo
0.4 miles
PNC Bank
Shops & Services
2,565 visits/mo
0.5 miles
Demographics for 07110, NJ
30,149
Population
11,981
Households
2.5
Avg Household Size
41
Median Age
50%
College-Educated
94%
High-School Grad
3.4 sq mi
ZIP Area
8,867
Density / Sq Mi
$115,215
Median Household Income
$67,621
Median Earnings
$1,698
Median Rent
$489,900
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property featuring a restaurant/bar and four residential apartments.
Where is this mixed-use property located?
The property is located at 2 E Passaic Ave Nutley, NJ.
What is the asking price?
The asking price for this property is $2,095,000.
What are key features of this property?
This property features: Thriving, iconic restaurant/bar business (The Old Canal Inn) established nearly a century ago with a strong customer base and total patron capacity of 186.; Includes 4 fully occupied, well‑maintained residential apartments, providing immediate rental income.; Turn‑key, profitable operation with strong potential for added growth.
