Mixed-Use Investment Property For
For Sale
$865,000
4 Market, Passaic, NJ 07055
High-performing, fully renovated mixed-use property with immediate cash flow.
Property Size2,600 SF
Price / SF$332.69
Days on Market186
Property Features for 4 Market
General Information
Standard status
Active
Size
2,600 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$8,604
Amenities
Central Air Heating
Gas Heating
Hot Air Heating
Listing Agency:
HOWARD HANNA RAND REALTY
(973) 694-6500
Listed By:
JOSE PEREZ
Source:
Corcoran
Added: Feb 4
Changed: Aug 8
Last Checked: Aug 8 at 6:12AM
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 HOWARD HANNA RAND REALTY
Investment Insights
Based on property information with market context.
This mixed-use investment property features a 2,600 sq ft restaurant/event hall on the first floor, which can accommodate up to 120 patrons. The commercial space includes central air, forced air heat, and a full-length open basement used by the tenant. The second floor contains two 2-bedroom, 1-bath residential units, each with living and dining rooms. All three units have separate utilities. The entire building was completely renovated in 2018, including the roof, plumbing, electrical systems, and all units, with all work completed to code. The restaurant/event hall is currently rented for $4,500, and each of the residential units are rented for $1,600. The residential leases expire in April and May 2026. The property is located within a redevelopment zone, offering potential for continued cash-flow ownership, rent optimization, or future redevelopment. It is suitable for investors seeking an income-producing asset with upside potential.
Key Highlights
- Over 8% Cap Rate: High‑performing investment property providing immediate cash flow.
- Prime Redevelopment Zone: Offers multiple exit strategies.
- Completely Renovated in 2018: Includes roof, plumbing, electrical, and all units.
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
$43,514
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
5.03%
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%
$870,280
$870.3K
Cap Rate 7%
$621,629
$621.6K
Cap Rate 9%
$483,489
$483.5K
Market Conditions
NOI Build-Up for 2,600 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
$66.5K $25.56/SF
− Vacancy
−$4.3K −$1.65/SF
EGI
$62.2K $23.91/SF
− OpEx
−$18.6K −$7.17/SF
NOI
$43.5K $16.74/SF
Area
Passaic County, NJ
Vacancy
6.46%
Lease Rate
$25.56 /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%
$870,280
Cap Rate 7%
$621,629
Cap Rate 9%
$483,489
Alternative Uses
Best Use
Multifamily LT 5
$621.6K
$543.9K – $725.2K
NOI $43,514 @ 7.0% cap · market cap 5.03%
Second Best
Apartment 5plus
$571.2K
$499.8K – $666.4K
NOI $39,983 @ 7.0% cap · market cap 4.62%
Theoretical Best
Office A
$678.9K
$594.1K – $792.1K
NOI $47,524 @ 7.0% cap · market cap 5.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,890
Businesses Nearby
Explore this area
Business Placement
Demographics for 07055, NJ
70,518
Population
21,019
Households
3.4
Avg Household Size
32
Median Age
17%
College-Educated
67%
High-School Grad
3.1 sq mi
ZIP Area
22,748
Density / Sq Mi
$56,780
Median Household Income
$30,935
Median Earnings
$1,392
Median Rent
$406,500
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?
Mixed-use property - High-performing, fully renovated mixed-use property with immediate cash flow.
Where is this mixed-use property located?
The property is located at 4 Market Passaic, NJ.
What is the asking price?
The asking price for this property is $865,000.
What are key features of this property?
This property features: Over 8% Cap Rate: High‑performing investment property providing immediate cash flow.; Prime Redevelopment Zone: Offers multiple exit strategies.; Completely Renovated in 2018: Includes roof, plumbing, electrical, and all units.
