Remodeled Medical Office
For Sale
$700,000
2 Park Avenue, Somerville, NJ 08876
Freestanding, newly remodeled one-story brick building offering flexible space that can divide into two office units.
Property Size4,000 SF
Price / SF$175
Days on Market142
Property Features for 2 Park Avenue
General Information
Standard status
Active
Size
4,000 SF
Total Parking Spaces
16
Property subtype
Office
Building Details
Building Size
4,000 SF
Year Built
1972
Stories
1
Construction
brick
Listing Agency:
BHHS FOX & ROACH
(973) 214-9733
Listed By:
Erica Davidson · License #8243435
(973) 214-9733
Source:
Lee-associates
Added: Apr 10
Changed: Aug 26
Last Checked: Aug 28 at 8:44AM
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 BHHS FOX & ROACH
Investment Insights
Based on property information with market context.
This is a free-standing 4,000 sf, one-story brick commercial building that has been newly remodeled and is currently a former dental office. The property is designed to work as a medical or professional office and can be divided into two separate units.
The building includes 16 off-street parking spaces and is located minutes from RWJ University Hospital Somerset.
As a versatile office asset with on-site parking and a remodel already completed, the layout supports either a single-tenant setup or a split configuration into two units.
The building includes 16 off-street parking spaces and is located minutes from RWJ University Hospital Somerset.
As a versatile office asset with on-site parking and a remodel already completed, the layout supports either a single-tenant setup or a split configuration into two units.
Key Highlights
- 4000 SF free‑standing, one‑story brick commercial building
- Newly remodeled former dental office with adaptable layout for professional use
- Can divide into 2 office 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
$61,200
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
8.74%
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%
$1,224,000
$1.2M
Cap Rate 7%
$874,286
$874.3K
Cap Rate 9%
$680,000
$680.0K
Market Conditions
NOI Build-Up for 4,000 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
$120.0K $30.00/SF
− Vacancy
−$38.4K −$9.60/SF
EGI
$81.6K $20.40/SF
− OpEx
−$20.4K −$5.10/SF
NOI
$61.2K $15.30/SF
Area
Somerset County, NJ
Vacancy
32.00%
Lease Rate
$30.00 /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%
$1,224,000
Cap Rate 7%
$874,286
Cap Rate 9%
$680,000
Alternative Uses
Best Use
Office B
$874.3K
$765.0K – $1.02M
NOI $61,200 @ 7.0% cap · market cap 8.74%
Second Best
Healthcare Medical
$850.8K
$744.5K – $992.6K
NOI $59,558 @ 7.0% cap · market cap 8.51%
Theoretical Best
Office A
$1.04M
$913.9K – $1.22M
NOI $73,114 @ 7.0% cap · market cap 10.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,727
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08876, NJ
22,849
Population
9,717
Households
2.4
Avg Household Size
40
Median Age
56%
College-Educated
94%
High-School Grad
16.0 sq mi
ZIP Area
1,428
Density / Sq Mi
$120,823
Median Household Income
$70,464
Median Earnings
$1,776
Median Rent
$468,400
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Freestanding, newly remodeled one-story brick building offering flexible space that can divide into two office units.
Where is this medical office space located?
The property is located at 2 Park Avenue Somerville, NJ.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: 4000 SF free‑standing, one‑story brick commercial building; Newly remodeled former dental office with adaptable layout for professional use; Can divide into 2 office units
