Approved Two-Unit Conversion
New
For Sale
$849,000
281 E Main St E, Somerville, NJ 08876
Approved plans provide two private residences with separate entrances and substantial living areas.
Property Size2,142 SF
Price / SF$396.36
Days on Market6
Property Features for 281 E Main St E
General Information
Standard status
Active
Size
2,142 SF
Property subtype
Multi-Family
Building Details
Year Built
1925
Listing Agency:
RE/MAX PINNACLE
(908) 306-0061
Listed By:
STEWART DANIELS · License #0895636
Source:
Luminancerealty
Added: Aug 26
Changed: Aug 31
Last Checked: Aug 31 at 1:21AM
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 PINNACLE
Investment Insights
Based on property information with market context.
This 1925 property is offered in its current condition with approved plans for conversion into two residences. Each planned home includes three bedrooms and three full bathrooms, with private entry points for separate occupancy. The first residence is designed at approximately 1,843 square feet and includes a main-level living and dining area, island kitchen, pantry, primary suite, finished basement recreation room, laundry, and utility space. The second residence is planned at approximately 2,461 square feet over the second and third floors, with comparable bedroom and kitchen layouts plus a finished third-floor recreation area, laundry, and utility room.
Exterior improvements shown in the plans include an expanded upper level, stucco finish, asphalt shingle roofing, new windows, and revised entrances. Site plans call for six parking spaces, lawn areas, screening vegetation, perimeter landscaping, lighting, curbing, and drainage work. The property is located at 281 E Main St E in Somerville, near downtown.
Exterior improvements shown in the plans include an expanded upper level, stucco finish, asphalt shingle roofing, new windows, and revised entrances. Site plans call for six parking spaces, lawn areas, screening vegetation, perimeter landscaping, lighting, curbing, and drainage work. The property is located at 281 E Main St E in Somerville, near downtown.
Key Highlights
- Approved plans for two separate 3‑bedroom, 3‑full‑bath residences
- Unit 1 designed at approximately 1,843 square feet with finished basement recreation area
- Unit 2 designed at approximately 2,461 square feet across the second and third floors
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
$30,570
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
3.60%
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%
$611,400
$611.4K
Cap Rate 7%
$436,714
$436.7K
Cap Rate 9%
$339,667
$339.7K
Market Conditions
NOI Build-Up for 2,142 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
$46.3K $21.60/SF
− Vacancy
−$2.6K −$1.21/SF
EGI
$43.7K $20.39/SF
− OpEx
−$13.1K −$6.12/SF
NOI
$30.6K $14.27/SF
Area
Somerset County, NJ
Vacancy
5.61%
Lease Rate
$21.60 /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%
$611,400
Cap Rate 7%
$436,714
Cap Rate 9%
$339,667
Alternative Uses
Best Use
Multifamily LT 5
$436.7K
$382.1K – $509.5K
NOI $30,570 @ 7.0% cap · market cap 3.60%
Second Best
Apartment 5plus
$380.1K
$332.6K – $443.4K
NOI $26,606 @ 7.0% cap · market cap 3.13%
Theoretical Best
Office A
$559.3K
$489.4K – $652.5K
NOI $39,152 @ 7.0% cap · market cap 4.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,396
Businesses Nearby
Explore this area
Business Placement
Demographics for 08876, NJ
22,849
Population
9,717
Households
2.4
Avg Household Size
40
Median Age
56%
College-Educated
94%
High-School Grad
16.0 sq mi
ZIP Area
1,428
Density / Sq Mi
$120,823
Median Household Income
$70,464
Median Earnings
$1,776
Median Rent
$468,400
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Approved plans provide two private residences with separate entrances and substantial living areas.
Where is this duplex located?
The property is located at 281 E Main St E Somerville, NJ.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: Approved plans for two separate 3‑bedroom, 3‑full‑bath residences; Unit 1 designed at approximately 1,843 square feet with finished basement recreation area; Unit 2 designed at approximately 2,461 square feet across the second and third floors
