Mixed-Use Investment Property For
For Sale
$845,000
Pending
205-207 PHILADELPHIA AVENUE, Egg Harbor City, NJ 08215
Fully occupied mixed-use property with commercial and residential units.
Property Size4,624 SF
Lot Size0.08 Acres
Days on Market888
Property Features for 205-207 PHILADELPHIA AVENUE
General Information
Standard status
Pending
Size
4,624 SF
Lot size
0.08 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$7,694
Building Details
Year Built
1910
Listing Agency:
BHHS Fox & Roach-Margate
(609) 822-4200
Listed By:
Robert A. Rosenthal · License #7819349
(609) 822-4200
Source:
Exitrealty
Added: Mar 6, 2024
Changed: Aug 8
Last Checked: Aug 8 at 2:10PM
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-Margate
Investment Insights
Based on property information with market context.
This fully occupied mixed-use property features a Bank of America branch, a dental care office, and two 3-bedroom apartments. The Bank of America lease commenced in 2013 for a term of 15 years, with 7 years remaining. Lease payments for years 16 to 30 will increase from $2,927 per month to $3,522.67 per month. Bank of America reimburses 25% of all operating expenses. The Dental Care lease is for 60 months with two five-year options, featuring a 3% annual increase. The dental care office includes an ADA-compliant bathroom. The second floor contains two 3-bedroom apartments, one renting for $1,200 per month and the other for $1,100 per month. The property consists of four units, each measuring 1,156 square feet, totaling 4,624 square feet. The property is located in a busy commercial area near public transportation. The cap rate is 7.66%.
Key Highlights
- 100% Occupancy with Established Tenants: Bank of America and Dental Care of Egg Harbor, LLC, plus two residential units.
- Bank of America Lease: Long‑term lease with 7 years remaining, providing stable and predictable income.
- Favorable Lease Terms: Bank of America reimburses 25% of operating expenses, enhancing profitability.
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
$71,538
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
8.47%
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%
$1,430,760
$1.4M
Cap Rate 7%
$1,021,971
$1.0M
Cap Rate 9%
$794,867
$794.9K
Market Conditions
NOI Build-Up for 4,624 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
$99.9K $21.60/SF
− Vacancy
−$4.5K −$0.97/SF
EGI
$95.4K $20.63/SF
− OpEx
−$23.8K −$5.16/SF
NOI
$71.5K $15.47/SF
Area
Atlantic County, NJ
Vacancy
4.50%
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%
$1,430,760
Cap Rate 7%
$1,021,971
Cap Rate 9%
$794,867
Alternative Uses
Best Use
Specialty Retail
$1.02M
$894.2K – $1.19M
NOI $71,538 @ 7.0% cap · market cap 8.47%
Second Best
Office B
$967.8K
$846.8K – $1.13M
NOI $67,747 @ 7.0% cap · market cap 8.02%
Theoretical Best
Warehouse
$1.72M
$1.51M – $2.01M
NOI $120,536 @ 7.0% cap · market cap 14.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
351
Businesses Nearby
Explore this area
Business Placement
Demographics for 08215, NJ
14,092
Population
5,813
Households
2.4
Avg Household Size
45
Median Age
23%
College-Educated
92%
High-School Grad
124.1 sq mi
ZIP Area
114
Density / Sq Mi
$84,630
Median Household Income
$46,680
Median Earnings
$1,525
Median Rent
$266,500
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Bank - Fully occupied mixed-use property with commercial and residential units.
Where is this bank located?
The property is located at 205-207 PHILADELPHIA AVENUE Egg Harbor City, NJ.
What is the asking price?
The asking price for this property is $845,000.
What are key features of this property?
This property features: 100% Occupancy with Established Tenants: Bank of America and Dental Care of Egg Harbor, LLC, plus two residential units.; Bank of America Lease: Long‑term lease with 7 years remaining, providing stable and predictable income.; Favorable Lease Terms: Bank of America reimburses 25% of operating expenses, enhancing profitability.
