Historic Hotel with Ocean
For Sale
$3,395,000
5 Abbott Avenue, Ocean Grove, NJ 07756
Historic Ocean Grove hotel with restaurant and ocean views.
Property Size9,427 SF
Lot Size0.05 Acres
Price / SF$360.14
Days on Market246
Property Features for 5 Abbott Avenue
General Information
Standard status
Active
Size
9,427 SF
Lot size
0.05 Acres
Property subtype
Commercial
Building Details
Year Built
1871
Listing Agency:
RE/MAX GATEWAY
(732) 361-0770
Listed By:
ALFREDO FRESNEDO · License #8333376
Source:
Corcoran
Added: Dec 19, 2025
Changed: Jul 6
Last Checked: Aug 21 at 8:05AM
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 GATEWAY
Investment Insights
Based on property information with market context.
This historic hotel in Ocean Grove presents an investment opportunity with growth potential. The building is situated on a double lot near the beach. It features 20 rentable rooms, 21 full bathrooms, and 3 half bathrooms. The property also includes 3 porches that offer panoramic ocean views, as well as owner's quarters. A 49-seat restaurant with a private entrance is located on the street level. Currently, the restaurant is used for guest breakfasts and an ice cream parlor that is open to the public, but it could be converted into a full-service restaurant. The property is 9,427 square feet. The business currently operates seasonally.
Key Highlights
- Steps to Ocean Grove's award‑winning beach.
- Historic hotel with 20 renting rooms and a 49‑seat restaurant.
- Solid investment opportunity with huge growth potential.
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
$144,165
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
4.25%
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%
$2,883,300
$2.9M
Cap Rate 7%
$2,059,500
$2.1M
Cap Rate 9%
$1,601,833
$1.6M
Market Conditions
NOI Build-Up for 9,427 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
$203.6K $21.60/SF
− Vacancy
−$11.4K −$1.21/SF
EGI
$192.2K $20.39/SF
− OpEx
−$48.1K −$5.10/SF
NOI
$144.2K $15.29/SF
Area
Monmouth County, NJ
Vacancy
5.60%
Lease Rate
$21.60 /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%
$2,883,300
Cap Rate 7%
$2,059,500
Cap Rate 9%
$1,601,833
Alternative Uses
Best Use
Specialty Retail
$2.06M
$1.80M – $2.40M
NOI $144,165 @ 7.0% cap · market cap 4.25%
Second Best
Hotel Hospitality
$1.01M
$881.6K – $1.18M
NOI $70,526 @ 7.0% cap · market cap 2.08%
Theoretical Best
Office A
$2.46M
$2.15M – $2.87M
NOI $172,310 @ 7.0% cap · market cap 5.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,514
Businesses Nearby
11k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Shops & Services 32%
Home Improvements & Furnishings 7%
Dunkin' Donuts
Dining
6,671 visits/mo
0.5 miles
BP
Shops & Services
3,291 visits/mo
0.5 miles
Ocean Grove Hardware
Home Improvements & Furnishings
764 visits/mo
0.1 miles
U-Haul Neighborhood Dealer
Shops & Services
285 visits/mo
0.5 miles
Demographics for 07756, NJ
3,164
Population
2,831
Households
1.1
Avg Household Size
58
Median Age
64%
College-Educated
92%
High-School Grad
0.4 sq mi
ZIP Area
7,910
Density / Sq Mi
$74,410
Median Household Income
$58,148
Median Earnings
$1,212
Median Rent
$764,200
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?
Hotel - Historic Ocean Grove hotel with restaurant and ocean views.
Where is this hotel located?
The property is located at 5 Abbott Avenue Ocean Grove, NJ.
What is the asking price?
The asking price for this property is $3,395,000.
What are key features of this property?
This property features: Steps to Ocean Grove's award‑winning beach.; Historic hotel with 20 renting rooms and a 49‑seat restaurant.; Solid investment opportunity with huge growth potential.
