Renovated Four-Unit Storefront
New
For Sale
$1,100,000
401 Orange Rd, Montclair, NJ 07042
Updated multi-unit commercial property with new building systems and leased storefront space in Montclair’s South End.
Property Size2,628 SF
Price / SF$418.57
Days on Market5
Property Features for 401 Orange Rd
General Information
Standard status
Active
Size
2,628 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
Utilities to Site
Yes
Taxes and HOA fees
Annual Taxes
$17,323
Amenities
Central air
Ductless Split AC Cooling
Flat Roof
Forced Hot Air Heating
Building Details
Year Built
1925
Buildings
1
Tenancy
Multi
Listing Agency:
BHHS FOX & ROACH
(973) 744-5544
Listed By:
ROMAN DRUKAROV · License #298368
(973) 454-3218
Source:
Corcoran
Added: Sep 15
Changed: Sep 18
Last Checked: Sep 18 at 8:03AM
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 BHHS FOX & ROACH
Investment Insights
Based on property information with market context.
This four-unit storefront property at 401 Orange Rd in Montclair’s South End section combines a 2,628-square-foot commercial building with a 1925 construction date and extensive renovation work. Improvements include new utilities, a replacement roof, and new stucco, creating an updated exterior and infrastructure package for the existing commercial layout.
The building is fully leased to new tenants, providing an established occupancy profile. A billboard that previously stood along the side of the property has been removed, and the side elevation may offer an opportunity for future billboard installation, subject to applicable approvals.
The building is fully leased to new tenants, providing an established occupancy profile. A billboard that previously stood along the side of the property has been removed, and the side elevation may offer an opportunity for future billboard installation, subject to applicable approvals.
Key Highlights
- Four‑unit storefront building totaling 2,628 square feet
- Extensively renovated with new utilities, roof, and stucco
- Fully leased to new tenants
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
$37,510
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
3.41%
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%
$750,200
$750.2K
Cap Rate 7%
$535,857
$535.9K
Cap Rate 9%
$416,778
$416.8K
Market Conditions
NOI Build-Up for 2,628 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
$56.8K $21.60/SF
− Vacancy
−$3.2K −$1.21/SF
EGI
$53.6K $20.39/SF
− OpEx
−$16.1K −$6.12/SF
NOI
$37.5K $14.27/SF
Area
Essex County, NJ
Vacancy
5.60%
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%
$750,200
Cap Rate 7%
$535,857
Cap Rate 9%
$416,778
Alternative Uses
Best Use
Retail
$535.9K
$468.9K – $625.2K
NOI $37,510 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$686.2K
$600.5K – $800.6K
NOI $48,036 @ 7.0% cap · market cap 4.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
613
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 07042, NJ
27,384
Population
11,682
Households
2.3
Avg Household Size
39
Median Age
67%
College-Educated
96%
High-School Grad
3.8 sq mi
ZIP Area
7,206
Density / Sq Mi
$127,083
Median Household Income
$75,856
Median Earnings
$2,017
Median Rent
$733,100
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Roses & Gifts — 53 Llewellyn Ave, Bloomfield, NJ 07003
- CS Florals and Designs LLC — 324 Orange Rd, Montclair, NJ 07042
Frequently Asked Questions
What type of property is this?
Storefront property - Updated multi-unit commercial property with new building systems and leased storefront space in Montclair’s South End.
Where is this storefront property located?
The property is located at 401 Orange Rd Montclair, NJ.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Four‑unit storefront building totaling 2,628 square feet; Extensively renovated with new utilities, roof, and stucco; Fully leased to new tenants
