Renovated Multi-Level Office
New
For Sale
$936,000
224 South St, Freehold, NJ 07728
Flexible office configuration with medical-use zoning, separate entrances, and substantial on-site parking.
Property Size2,800 SF
Price / SF$334.29
Days on Market2
Property Features for 224 South St
General Information
Standard status
Active
Size
2,800 SF
Total Parking Spaces
17
Property subtype
Commercial
Zoning
P-1
Taxes and HOA fees
Annual Taxes
$11,059
Amenities
ADA bathroom
break room
private side yard
signage
Building Details
Building Size
2,800 SF
Buildings
1
Stories
2
Listing Agency:
Century 21 Mack Morris Iris Lurie, Inc.
(732) 536-2228
Listed By:
Daniel Pevsner
(732) 536-2228
Source:
Elliman
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 10:18AM
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 Century 21 Mack Morris Iris Lurie, Inc.
Investment Insights
Based on property information with market context.
Renovated three-level office building offering approximately 2,800 square feet in a flexible commercial layout. The first floor features an open plan, ADA bathroom, and break room, while the second floor includes five private rooms, a bathroom, and kitchenette area. A finished walk-up attic provides additional usable space with natural light. Separate heating and cooling systems, electrical panels, and meters support independent floor operations, and the first and second levels have their own entrances while remaining connected internally.
The property is zoned P-1 for office and medical uses and includes a parking lot with capacity for 17 cars. Additional site features include a private side yard and signage. Access to Route 9, Route 79, Route 33, and Downtown is within minutes.
The property is zoned P-1 for office and medical uses and includes a parking lot with capacity for 17 cars. Additional site features include a private side yard and signage. Access to Route 9, Route 79, Route 33, and Downtown is within minutes.
Key Highlights
- Approximately 2,800 square feet across three finished levels
- P‑1 zoning supports office and medical uses
- Parking lot accommodates 17 cars
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
$42,840
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
4.58%
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%
$856,800
$856.8K
Cap Rate 7%
$612,000
$612.0K
Cap Rate 9%
$476,000
$476.0K
Market Conditions
NOI Build-Up for 2,800 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
$84.0K $30.00/SF
− Vacancy
−$26.9K −$9.60/SF
EGI
$57.1K $20.40/SF
− OpEx
−$14.3K −$5.10/SF
NOI
$42.8K $15.30/SF
Area
Monmouth 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%
$856,800
Cap Rate 7%
$612,000
Cap Rate 9%
$476,000
Alternative Uses
Best Use
Office B
$612.0K
$535.5K – $714.0K
NOI $42,840 @ 7.0% cap · market cap 4.58%
Second Best
Healthcare Medical
$595.6K
$521.1K – $694.9K
NOI $41,691 @ 7.0% cap · market cap 4.45%
Theoretical Best
Office A
$731.1K
$639.8K – $853.0K
NOI $51,180 @ 7.0% cap · market cap 5.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
710
Businesses Nearby
Explore this area
Business Placement
Demographics for 07728, NJ
56,444
Population
21,150
Households
2.7
Avg Household Size
43
Median Age
46%
College-Educated
92%
High-School Grad
49.6 sq mi
ZIP Area
1,138
Density / Sq Mi
$107,042
Median Household Income
$56,824
Median Earnings
$1,941
Median Rent
$490,000
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?
Office building - Flexible office configuration with medical-use zoning, separate entrances, and substantial on-site parking.
Where is this office building located?
The property is located at 224 South St Freehold, NJ.
What is the asking price?
The asking price for this property is $936,000.
What are key features of this property?
This property features: Approximately 2,800 square feet across three finished levels; P‑1 zoning supports office and medical uses; Parking lot accommodates 17 cars
