Mixed-Use Property with
New
For Sale
$1,300,000
240 Demarest Rd, Sparta, NJ 07871
Building includes a residential component, storage, garage, and on-site parking.
Property Size7,000 SF
Lot Size9.00 Acres
Price / SF$185.71
Days on Market2
Property Features for 240 Demarest Rd
General Information
Standard status
Active
Size
7,000 SF
Total Parking Spaces
20
Lot size
9.00 Acres
Additional Details
Road Access
Yes
Building Details
Year Built
2003
Buildings
1
Listing Agency:
WEICHERT REALTORS
Listed By:
MARY SMITH · License #275238
(973) 219-5355
Source:
Luminancerealty
Added: Sep 13
Last Checked: Sep 14 at 1:54PM
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 WEICHERT REALTORS
Investment Insights
Based on property information with market context.
This mixed-use property includes a 7,000-square-foot building completed in 2003, with a two-bedroom apartment, substantial storage, an attached two-car garage, and parking for 20 vehicles. The site previously operated as a train museum, providing a distinctive existing use within the property’s history.
The property encompasses nearly 9 acres at 240 Demarest Rd in Sparta Township, New Jersey, positioned just off Route 15. A farm assessment is also associated with the property, adding an agricultural classification to the overall property profile.
The property encompasses nearly 9 acres at 240 Demarest Rd in Sparta Township, New Jersey, positioned just off Route 15. A farm assessment is also associated with the property, adding an agricultural classification to the overall property profile.
Key Highlights
- Nearly 9‑acre property just off Route 15
- 7,000‑square‑foot building completed in 2003
- Two‑bedroom apartment with substantial storage
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
$69,300
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
5.33%
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%
$1,386,000
$1.4M
Cap Rate 7%
$990,000
$990.0K
Cap Rate 9%
$770,000
$770.0K
Market Conditions
NOI Build-Up for 7,000 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
$126.0K $18.00/SF
− Vacancy
−$15.1K −$2.16/SF
EGI
$110.9K $15.84/SF
− OpEx
−$41.6K −$5.94/SF
NOI
$69.3K $9.90/SF
Area
Sussex County, NJ
Vacancy
12.00%
Lease Rate
$18.00 /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%
$1,386,000
Cap Rate 7%
$990,000
Cap Rate 9%
$770,000
Alternative Uses
Best Use
Mixed Use
$990.0K
$866.3K – $1.16M
NOI $69,300 @ 7.0% cap · market cap 5.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.83M
$1.60M – $2.13M
NOI $127,949 @ 7.0% cap · market cap 9.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
215
Businesses Nearby
Explore this area
Business Placement
Demographics for 07871, NJ
20,992
Population
8,367
Households
2.5
Avg Household Size
43
Median Age
62%
College-Educated
98%
High-School Grad
38.2 sq mi
ZIP Area
550
Density / Sq Mi
$167,443
Median Household Income
$84,587
Median Earnings
$1,831
Median Rent
$462,900
Median Home Value
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Building includes a residential component, storage, garage, and on-site parking.
Where is this mixed-use property located?
The property is located at 240 Demarest Rd Sparta, NJ.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Nearly 9‑acre property just off Route 15; 7,000‑square‑foot building completed in 2003; Two‑bedroom apartment with substantial storage
