Functional Corner Industrial
For Sale
Contact for pricing
246 Paterson Ave, Paterson, NJ 07502
Freestanding Paterson industrial building with office space and full basement.
Property Size4,459 SF
Lot Size0.11 Acres
Price / SF$190.63
Days on Market158
Property Features for 246 Paterson Ave
General Information
Standard status
Active
Size
4,459 SF
Class
A
Lot size
0.11 Acres
Property subtype
Industrial
Zoning
R-3
Listing Agency:
Realty One Group
(973) 686-7777
Listed By:
Sol Castanos · License #NJ 1867493
Source:
Crexi
Added: Mar 17
Changed: Aug 14
Last Checked: Aug 14 at 7:24AM
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 Realty One Group
Investment Insights
Based on property information with market context.
This freestanding corner industrial building in Paterson is situated on a 50 x 100 lot. The property features a drive-in loading door, dedicated office space, two restrooms, and a full basement for additional storage or operational capacity. The layout allows for separation between office and warehouse operations. It is suited for contractors, HVAC, plumbing, electrical businesses, e-commerce, light distribution, or an owner-user looking to establish a headquarters. Recent capital improvements include a newly installed sprinkler system. The corner positioning enhances accessibility, visibility, and logistics flow. The property is zoned R 3. It is a flex industrial asset suited for both owner-users and investors seeking a functional property with utility, multiple use scenarios, and long-term potential. The building has a total property size of 4459 square feet.
Key Highlights
- Freestanding corner industrial building in Paterson.
- Features a drive‑in loading door and dedicated office space.
- Full basement provides additional 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
$50,700
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
5.96%
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%
$1,014,000
$1.0M
Cap Rate 7%
$724,286
$724.3K
Cap Rate 9%
$563,333
$563.3K
Market Conditions
NOI Build-Up for 4,459 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
$77.1K $17.28/SF
− Vacancy
−$4.6K −$1.04/SF
EGI
$72.4K $16.24/SF
− OpEx
−$21.7K −$4.87/SF
NOI
$50.7K $11.37/SF
Area
Paterson, NJ
Vacancy
6.00%
Lease Rate
$17.28 /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%
$1,014,000
Cap Rate 7%
$724,286
Cap Rate 9%
$563,333
Alternative Uses
Best Use
Industrial
$724.3K
$633.8K – $845.0K
NOI $50,700 @ 7.0% cap · market cap 5.96%
Second Best
Flex RnD
$672.5K
$588.5K – $784.6K
NOI $47,078 @ 7.0% cap · market cap 5.54%
Theoretical Best
Office A
$1.16M
$1.02M – $1.36M
NOI $81,503 @ 7.0% cap · market cap 9.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,056
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07502, NJ
16,592
Population
4,861
Households
3.4
Avg Household Size
35
Median Age
17%
College-Educated
78%
High-School Grad
0.9 sq mi
ZIP Area
18,436
Density / Sq Mi
$68,649
Median Household Income
$32,407
Median Earnings
$1,492
Median Rent
$347,200
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Pep's Grill & Pizza — 464 Chamberlain Ave, Paterson, NJ 07522
Frequently Asked Questions
What type of property is this?
Flex space - Freestanding Paterson industrial building with office space and full basement.
Where is this flex space located?
The property is located at 246 Paterson Ave Paterson, NJ.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Freestanding corner industrial building in Paterson.; Features a drive‑in loading door and dedicated office space.; Full basement provides additional storage.
