Building Details

Year Built 1960

Listing Agency: NEXTHOME PREMIER

Listed By: MARYALICE M. RAUSHI · License #7857167,PersonLicenseNumber Show Phone

Source: Luminancerealty

Added: May 18 Changed: Sep 4 Last Checked: Sep 1 at 8:28PM

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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 NEXTHOME PREMIER

Investment Insights

Based on property information with market context.

This mixed-use property presents a rare opportunity for investors and is situated in the center of Basking Ridge on 0.25 acres. The property includes two buildings located at 31 South Finley and 32 Brownlee Place. It features a large parking lot with 14 spots, supplemented by on-street parking. The buildings are fully occupied by seven tenants and offer a 7% cap rate. The location has a bike score of 27, indicating it is somewhat bikeable, and a walk score of 22, suggesting car dependence.

Key Highlights

• Fully Occupied with 7% Cap Rate
• Two Buildings on One Lot
• Prime Location in the Center of Basking Ridge

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

$96,628

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

4.03%

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%

$1,932,560 $1.9M

Cap Rate 7%

$1,380,400 $1.4M

Cap Rate 9%

$1,073,644 $1.1M

Market Conditions

NOI Build-Up for 5,750 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

$198.7K $34.56/SF

− Vacancy

−$44.1K −$7.67/SF

EGI

$154.6K $26.89/SF

− OpEx

−$58.0K −$10.08/SF

NOI

$96.6K $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%

$1,932,560

Cap Rate 7%

$1,380,400

Cap Rate 9%

$1,073,644

Alternative Uses

Best Use

Mixed Use

$1.38M

$1.21M – $1.61M (±1% cap)

NOI $96,628 @ 7.0% cap · market cap 4.03%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.50M

$1.31M – $1.75M (±1% cap)

NOI $105,101 @ 7.0% cap · market cap 4.38%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Ehrhardt Center for Integrative ... Alternative Medicine Practice Good Tidings Plumbing ... Plumbing Service The Ehrhardt Center for Integrative ... Alternative Medicine Practice Kamini Patel Alternative Medicine Practice Basking In Nutrition Specialty Food Shop

Suggested Use

Top Pick Auto Repair Shop Hair Salon Parking Lot & Garage Restaurant Spa & Massage Center Auto Parts Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

418

Businesses Nearby

Explore this area Business Placement

Demographics for 07920, NJ

27,912

Population

10,943

Households

2.6

Avg Household Size

45

Median Age

74%

College-Educated

97%

High-School Grad

27.2 sq mi

ZIP Area

1,026

Density / Sq Mi

$184,630

Median Household Income

$101,310

Median Earnings

$2,330

Median Rent

$769,300

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Mixed-use property with seven tenants and a large parking lot.

Where is this mixed-use property located?

The property is located at 31 S Finley Ave Basking Ridge, NJ.

What is the asking price?

The asking price for this property is $2,400,000.

What are key features of this property?

This property features: Fully Occupied with **7% Cap Rate**; Two Buildings on One Lot; Prime Location in the Center of Basking Ridge