Mixed-Use Building with
For Sale
$549,000
Pending
23 Morristown Rd, Bernardsville, NJ 07924
Commercial storefront on the main level with a one-bedroom, one-bath apartment above, delivered vacant for new ownership.
Property Size1,512 SF
Days on Market61
Property Features for 23 Morristown Rd
General Information
Standard status
Pending
Size
1,512 SF
Property subtype
Commercial
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$8,626
Building Details
Building Size
1,512 SF
Year Built
1920
Stories
2
Units
2
Listing Agency:
Listed By:
MATTHEW TATULLI
Source:
Elliman
Added: Jul 1
Changed: Aug 24
Last Checked: Aug 29 at 1:49PM
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 MATTHEW TATULLI
Investment Insights
Based on property information with market context.
This mixed-use property is currently configured with a commercial storefront on the main level and a one-bedroom, one-bath apartment above. The building will be delivered completely vacant, allowing the next owner to update or reposition the space as desired.
Located in the heart of Bernardsville, it offers high visibility in a downtown setting. The property is described as being just steps from the Bernardsville Train Station, as well as nearby restaurants, boutique shopping, cafes, parks, and local entertainment.
Buyers should complete due diligence regarding permitted uses. The Walk Score and Bike Score provided indicate a more car-dependent area with some walkability.
Located in the heart of Bernardsville, it offers high visibility in a downtown setting. The property is described as being just steps from the Bernardsville Train Station, as well as nearby restaurants, boutique shopping, cafes, parks, and local entertainment.
Buyers should complete due diligence regarding permitted uses. The Walk Score and Bike Score provided indicate a more car-dependent area with some walkability.
Key Highlights
- Year built 1920 mixed‑use property with a commercial storefront on the main level and a 1‑bedroom, 1‑bath apartment above.
- Will be delivered completely vacant, offering new owners the ability to customize the space right away.
- Apartment above provides potential for independent residential rental separate from the storefront.
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
$25,409
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
4.63%
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%
$508,180
$508.2K
Cap Rate 7%
$362,986
$363.0K
Cap Rate 9%
$282,322
$282.3K
Market Conditions
NOI Build-Up for 1,512 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
$52.3K $34.56/SF
− Vacancy
−$11.6K −$7.67/SF
EGI
$40.7K $26.89/SF
− OpEx
−$15.2K −$10.08/SF
NOI
$25.4K $16.80/SF
Area
Somerset County, NJ
Vacancy
22.20%
Lease Rate
$34.56 /SF/Yr
Expense Ratio
37.50%
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%
$508,180
Cap Rate 7%
$362,986
Cap Rate 9%
$282,322
Alternative Uses
Best Use
Mixed Use
$363.0K
$317.6K – $423.5K
NOI $25,409 @ 7.0% cap · market cap 4.63%
Second Best
Office B
$330.5K
$289.2K – $385.6K
NOI $23,134 @ 7.0% cap · market cap 4.21%
Theoretical Best
Office A
$394.8K
$345.5K – $460.6K
NOI $27,637 @ 7.0% cap · market cap 5.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
870
Businesses Nearby
Explore this area
Business Placement
Demographics for 07924, NJ
7,650
Population
2,683
Households
2.9
Avg Household Size
41
Median Age
69%
College-Educated
93%
High-School Grad
12.0 sq mi
ZIP Area
638
Density / Sq Mi
$230,752
Median Household Income
$74,760
Median Earnings
$2,155
Median Rent
$733,800
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?
Mixed-use property - Commercial storefront on the main level with a one-bedroom, one-bath apartment above, delivered vacant for new ownership.
Where is this mixed-use property located?
The property is located at 23 Morristown Rd Bernardsville, NJ.
What is the asking price?
The asking price for this property is $549,000.
What are key features of this property?
This property features: Year built 1920 mixed‑use property with a commercial storefront on the main level and a 1‑bedroom, 1‑bath apartment above.; Will be delivered completely vacant, offering new owners the ability to customize the space right away.; Apartment above provides potential for independent residential rental separate from the storefront.
