Dry Cleaning Storefront With
New
For Sale
$550,000
500 Chestnut, Union, NJ 07083
Existing fixtures and equipment are included with the sale of this established retail operation.
Property Size1,800 SF
Price / SF$305.56
Days on Market5
Property Features for 500 Chestnut
General Information
Standard status
Active
Size
1,800 SF
Property subtype
Commercial
Amenities
Gas Heating
Hot Air Heating
Listing Agency:
RE/MAX SELECT - FORT LEE
(201) 886-8888
Listed By:
EUN CHO
Source:
Corcoran
Added: Aug 19
Changed: Aug 22
Last Checked: Aug 22 at 7:02AM
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 SELECT - FORT LEE
Investment Insights
Based on property information with market context.
This storefront property at 500 Chestnut in Union, New Jersey, includes an established dry cleaning business that has operated for more than 50 years. The 1,800-square-foot space is offered with its existing fixtures and equipment, providing a defined operating setup for the next owner.
The property includes ample parking and is situated on a high-traffic street. The sale combines the storefront with the associated dry cleaning operation and installed business equipment.
The property includes ample parking and is situated on a high-traffic street. The sale combines the storefront with the associated dry cleaning operation and installed business equipment.
Key Highlights
- 1,800‑square‑foot storefront property
- Dry cleaning business operating for more than 50 years
- Sale includes all fixtures and equipment
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
$25,692
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%
$513,840
$513.8K
Cap Rate 7%
$367,029
$367.0K
Cap Rate 9%
$285,467
$285.5K
Market Conditions
NOI Build-Up for 1,800 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
$38.9K $21.60/SF
− Vacancy
−$2.2K −$1.21/SF
EGI
$36.7K $20.39/SF
− OpEx
−$11.0K −$6.12/SF
NOI
$25.7K $14.27/SF
Area
Union 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%
$513,840
Cap Rate 7%
$367,029
Cap Rate 9%
$285,467
Alternative Uses
Best Use
Retail
$367.0K
$321.2K – $428.2K
NOI $25,692 @ 7.0% cap · market cap 4.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$470.0K
$411.3K – $548.4K
NOI $32,901 @ 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
693
Businesses Nearby
115k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 41%
Dining 32%
Groceries 23%
Beauty & Spa 3%
Seabra's Market
Groceries
27,031 visits/mo
0.5 miles
Dollar Tree
Shops & Services
16,555 visits/mo
0.4 miles
7-Eleven
Shops & Services
9,151 visits/mo
0.5 miles
Dunkin' Donuts
Dining
9,140 visits/mo
0.5 miles
Bank of America
Shops & Services
8,929 visits/mo
0.3 miles
Demographics for 07083, NJ
56,131
Population
20,792
Households
2.7
Avg Household Size
41
Median Age
41%
College-Educated
89%
High-School Grad
8.7 sq mi
ZIP Area
6,452
Density / Sq Mi
$118,106
Median Household Income
$58,443
Median Earnings
$1,938
Median Rent
$425,600
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 - Existing fixtures and equipment are included with the sale of this established retail operation.
Where is this storefront property located?
The property is located at 500 Chestnut Union, NJ.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: 1,800‑square‑foot storefront property; Dry cleaning business operating for more than 50 years; Sale includes all fixtures and equipment
