High-Visibility Commercial Property For
For Sale
$1,675,000
454 W Union Ave, Bound Brook, NJ 08805
Owner-user commercial property in a high-traffic location.
Property Size5,478 SF
Lot Size0.26 Acres
Price / SF$305.77
Days on Market191
Property Features for 454 W Union Ave
General Information
Standard status
Active
Size
5,478 SF
Lot size
0.26 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$25,703
Amenities
Central air
Flat Roof
Forced Hot Air Heating
Multi-Zone Cooling
Multi-Zone Heating
Building Details
Year Built
1968
Listing Agency:
RE/MAX PINNACLE
(908) 306-9600
Listed By:
STEWART DANIELS · License #0895636
Source:
Corcoran
Added: Feb 11
Changed: Aug 18
Last Checked: Aug 20 at 6:33AM
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 high-visibility commercial property is located in the Borough's B-1 General Business District. The building, currently owner-occupied, will be delivered vacant at closing, offering immediate occupancy. The B-1 zoning allows for a range of commercial, service, institutional, and cultural uses, including retail, professional and medical offices, personal and business services, hospitality, fitness and recreational facilities, cultural venues, educational uses, and houses of worship, along with customary accessory uses. The flexible zoning supports various business models and adaptive reuse opportunities. Positioned along Route 28 (W Union Ave), a primary commercial corridor, the property offers monument signage and strong visibility to both eastbound and westbound traffic. The location benefits from proximity to downtown Bound Brook, established businesses, and surrounding residential neighborhoods. Convenient access to I-287 and Route 22 provides regional connectivity throughout Somerset County and Central New Jersey. The Bound Brook NJ Transit rail station is nearby, offering direct service to Newark with connections to NYC. Capital improvements completed in 2014 include structural upgrades with metal I-beam construction. The building features a fire alarm system and multi-zone HVAC for operational flexibility. The property size is 5478 square feet. Sale is preferred, but the seller will consider a lease or lease with an option to purchase. This property is not offered as an investment property.
Key Highlights
- High‑visibility location on Route 28 (W Union Ave) with monument signage.
- Delivered vacant at closing for immediate owner‑user occupancy.
- Flexible B‑1 zoning allows for a wide range of commercial uses.
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
$78,189
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
4.67%
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%
$1,563,780
$1.6M
Cap Rate 7%
$1,116,986
$1.1M
Cap Rate 9%
$868,767
$868.8K
Market Conditions
NOI Build-Up for 5,478 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
$118.3K $21.60/SF
− Vacancy
−$6.6K −$1.21/SF
EGI
$111.7K $20.39/SF
− OpEx
−$33.5K −$6.12/SF
NOI
$78.2K $14.27/SF
Area
Somerset 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%
$1,563,780
Cap Rate 7%
$1,116,986
Cap Rate 9%
$868,767
Alternative Uses
Best Use
Retail
$1.12M
$977.4K – $1.30M
NOI $78,189 @ 7.0% cap · market cap 4.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.67M
NOI $100,129 @ 7.0% cap · market cap 5.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
651
Businesses Nearby
122k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 41%
Shops & Services 34%
Dining 19%
Apparel 7%
ShopRite
Groceries
49,938 visits/mo
0.5 miles
Burger King
Dining
13,757 visits/mo
0.3 miles
QuickChek
Shops & Services
11,149 visits/mo
0.1 miles
BP
Shops & Services
9,354 visits/mo
0.4 miles
Dunkin' Donuts
Dining
9,119 visits/mo
0.1 miles
Demographics for 08805, NJ
13,948
Population
5,524
Households
2.5
Avg Household Size
37
Median Age
33%
College-Educated
86%
High-School Grad
2.9 sq mi
ZIP Area
4,810
Density / Sq Mi
$84,201
Median Household Income
$41,874
Median Earnings
$1,859
Median Rent
$393,900
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Owner-user commercial property in a high-traffic location.
Where is this storefront property located?
The property is located at 454 W Union Ave Bound Brook, NJ.
What is the asking price?
The asking price for this property is $1,675,000.
What are key features of this property?
This property features: High‑visibility location on Route 28 (W Union Ave) with monument signage.; Delivered vacant at closing for immediate owner‑user occupancy.; Flexible B‑1 zoning allows for a wide range of commercial uses.
