Atlantic City Redevelopment
For Sale
$2,500,000
2318 Fairmount Avenue, Atlantic City, NJ 08400
Two-story mixed-use property with redevelopment potential in Atlantic City.
Property Size10,156 SF
Price / SF$246.16
Days on Market117
Property Features for 2318 Fairmount Avenue
General Information
Standard status
Active
Size
10,156 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$13,675
Amenities
Display Window
Off Street
On Site
Space Heater Heating
Building Details
Year Built
1920
Listing Agency:
RE/MAX ONE REALTY
(856) 866-2525
Listed By:
JAMES PERDIGAO · License #2296334
Source:
Corcoran
Added: Apr 15
Changed: Aug 8
Last Checked: Aug 8 at 2:57PM
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 RE/MAX ONE REALTY
Investment Insights
Based on property information with market context.
Located at 2318 Fairmount Avenue in Atlantic City, this two-story property presents a redevelopment opportunity. The property is zoned MURD (Mixed-Use Residential Development), making it suitable for investors or developers. The first floor is currently operating as an auto body shop, offering immediate usability or income potential. The second floor is a blank canvas, ready for residential units, office space, or a mixed-use concept. The property is located just off the highway as you enter Atlantic City, providing accessibility and visibility. It is also located in close proximity to the Atlantic City Boardwalk, Atlantic City Beach, and casinos. The property size is 10156 square feet.
Key Highlights
- Prime redevelopment opportunity in the heart of Atlantic City.
- MURD zoning allows for versatile development options.
- Excellent accessibility and visibility, positioned just off the highway entering Atlantic City.
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
$218,023
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
8.72%
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%
$4,360,460
$4.4M
Cap Rate 7%
$3,114,614
$3.1M
Cap Rate 9%
$2,422,478
$2.4M
Market Conditions
NOI Build-Up for 10,156 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
$340.0K $33.48/SF
− Vacancy
−$28.6K −$2.81/SF
EGI
$311.5K $30.67/SF
− OpEx
−$93.4K −$9.20/SF
NOI
$218.0K $21.47/SF
Area
Atlantic County, NJ
Vacancy
8.40%
Lease Rate
$33.48 /SF/Yr
Expense Ratio
30.00%
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%
$4,360,460
Cap Rate 7%
$3,114,614
Cap Rate 9%
$2,422,478
Alternative Uses
Best Use
Industrial
$3.11M
$2.73M – $3.63M
NOI $218,023 @ 7.0% cap · market cap 8.72%
Second Best
Mixed Use
$2.15M
$1.89M – $2.51M
NOI $150,817 @ 7.0% cap · market cap 6.03%
Theoretical Best
Warehouse
$3.78M
$3.31M – $4.41M
NOI $264,742 @ 7.0% cap · market cap 10.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,296
Businesses Nearby
442k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 45%
Hotels & Casinos 24%
Dining 22%
Shops & Services 7%
Caesars Entertainment
Hotels & Casinos
88,337 visits/mo
0.4 miles
Bass Pro Shops
Apparel
57,263 visits/mo
0.2 miles
McDonald's
Dining
46,682 visits/mo
0.2 miles
Circle K
Shops & Services
19,455 visits/mo
0.2 miles
Sheraton Atlantic City Convention Center Hotel
Hotels & Casinos
18,372 visits/mo
0.2 miles
Market
Vacancy Rate% for Retail 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?
Mixed-use property - Two-story mixed-use property with redevelopment potential in Atlantic City.
Where is this mixed-use property located?
The property is located at 2318 Fairmount Avenue Atlantic City, NJ.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Prime redevelopment opportunity in the heart of Atlantic City.; MURD zoning allows for versatile development options.; Excellent accessibility and visibility, positioned just off the highway entering Atlantic City.
