Raritan Borough Leased
For Sale
$975,000
46 E Somerset Street, Raritan, NJ 08869
Fully leased building in Raritan Borough with renovation potential.
Property Size2,428 SF
Price / SF$401.57
Days on Market670
Property Features for 46 E Somerset Street
General Information
Standard status
Active
Size
2,428 SF
Property subtype
Commercial
Building Details
Year Built
1910
Listing Agency:
C21/ Action Plus Realty
Listed By:
Robert Skinner · License #1863829
(732) 492-8419
Source:
Actionplusrealty
Added: Nov 4, 2024
Changed: Sep 4
Last Checked: Aug 17 at 7:54AM
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 C21/ Action Plus Realty
Investment Insights
Based on property information with market context.
Located in the downtown Raritan Borough neighborhood, this building is fully leased but currently empty, offering the possibility of renovations while collecting rent. The property features 5 exam rooms, 10 parking spaces including one handicapped space, a kitchen/break room, and 2 bathrooms. Additional features include a basement, attic, and original hardwood floors upstairs. The building provides ample office and storage space. The property has a 6.01% cap rate.
Key Highlights
- Fully leased building provides immediate rental income during renovations.
- Attractive 6.01% Cap Rate.
- Located in the downtown Raritan Borough neighborhood.
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
$37,148
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
3.81%
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%
$742,960
$743.0K
Cap Rate 7%
$530,686
$530.7K
Cap Rate 9%
$412,756
$412.8K
Market Conditions
NOI Build-Up for 2,428 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
$72.8K $30.00/SF
− Vacancy
−$23.3K −$9.60/SF
EGI
$49.5K $20.40/SF
− OpEx
−$12.4K −$5.10/SF
NOI
$37.1K $15.30/SF
Area
Somerset County, NJ
Vacancy
32.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
25.00%
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%
$742,960
Cap Rate 7%
$530,686
Cap Rate 9%
$412,756
Alternative Uses
Best Use
Office B
$530.7K
$464.4K – $619.1K
NOI $37,148 @ 7.0% cap · market cap 3.81%
Second Best
Healthcare Medical
$516.5K
$451.9K – $602.5K
NOI $36,152 @ 7.0% cap · market cap 3.71%
Theoretical Best
Office A
$634.0K
$554.8K – $739.7K
NOI $44,380 @ 7.0% cap · market cap 4.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
979
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 08869, NJ
7,835
Population
3,257
Households
2.4
Avg Household Size
39
Median Age
40%
College-Educated
90%
High-School Grad
2.0 sq mi
ZIP Area
3,918
Density / Sq Mi
$103,699
Median Household Income
$50,108
Median Earnings
$1,927
Median Rent
$449,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully leased building in Raritan Borough with renovation potential.
Where is this medical office space located?
The property is located at 46 E Somerset Street Raritan, NJ.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Fully leased building provides immediate rental income during renovations.; Attractive 6.01% Cap Rate.; Located in the downtown Raritan Borough neighborhood.
