Medical Building Near RWJ
For Sale
$3,000,000
465 UNION AVE, Bridgewater, NJ 08807
Medical building for sale near RWJ hospital with large parking.
Property Size16,000 SF
Lot Size2.50 Acres
Price / SF$187.50
Days on Market644
Property Features for 465 UNION AVE
General Information
Standard status
Active
Size
16,000 SF
Lot size
2.50 Acres
Property subtype
Office
Taxes and HOA fees
Annual Taxes
$35,882
Amenities
3
Flat
com
Corner Lot.
2.65
Corner.
Listing Agency:
RE/MAX ACHIEVERS
(908) 522-9444
Listed By:
TONI ANN GONCALVES · License #16239
(908) 578-2324
Source:
Xome
Added: Dec 2, 2024
Changed: Sep 4
Last Checked: Sep 7 at 5:26AM
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 ACHIEVERS
Investment Insights
Based on property information with market context.
This is a medical building for sale situated on over 2.5 acres. The property features a large parking lot. All units are currently rented. The building is located minutes from RWJ hospital.
Key Highlights
- Prime Location: Highly desirable area with high visibility and accessibility.
- Minutes to RWJ Hospital: Extremely convenient for medical professionals and patients.
- All Units Rented: Provides immediate rental income.
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
$238,234
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
7.94%
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%
$4,764,680
$4.8M
Cap Rate 7%
$3,403,343
$3.4M
Cap Rate 9%
$2,647,044
$2.6M
Market Conditions
NOI Build-Up for 16,000 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
$422.4K $26.40/SF
− Vacancy
−$25.3K −$1.58/SF
EGI
$397.1K $24.82/SF
− OpEx
−$158.8K −$9.93/SF
NOI
$238.2K $14.89/SF
Area
Somerset County, NJ
Vacancy
6.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$4,764,680
Cap Rate 7%
$3,403,343
Cap Rate 9%
$2,647,044
Alternative Uses
Best Use
Healthcare Medical
$3.40M
$2.98M – $3.97M
NOI $238,234 @ 7.0% cap · market cap 7.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.18M
$3.66M – $4.87M
NOI $292,454 @ 7.0% cap · market cap 9.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
465
Businesses Nearby
Explore this area
Business Placement
Demographics for 08807, NJ
39,299
Population
14,302
Households
2.7
Avg Household Size
43
Median Age
61%
College-Educated
95%
High-School Grad
25.5 sq mi
ZIP Area
1,541
Density / Sq Mi
$165,983
Median Household Income
$79,480
Median Earnings
$2,092
Median Rent
$562,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Medical building for sale near RWJ hospital with large parking.
Where is this medical center located?
The property is located at 465 UNION AVE Bridgewater, NJ.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Prime Location: Highly desirable area with high visibility and accessibility.; Minutes to RWJ Hospital: Extremely convenient for medical professionals and patients.; All Units Rented: Provides immediate rental income.
