Investment Property with
For Sale
$1,180,000
509 Pompton Ave, Cedar Grove, NJ 07009
Residential income property featuring a basement and parking spaces.
Property Size3,058 SF
Lot Size0.16 Acres
Price / SF$385.87
Days on Market165
Property Features for 509 Pompton Ave
General Information
Standard status
Active
Size
3,058 SF
Lot size
0.16 Acres
Property subtype
Commercial
Building Details
Year Built
1947
Listing Agency:
RE/MAX TRUST PROPERTIES
(973) 253-3343
Listed By:
SALIH OKDEMIR
Source:
Elliman
Added: Mar 10
Changed: Jul 6
Last Checked: Aug 21 at 10:43AM
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 TRUST PROPERTIES
Investment Insights
Based on property information with market context.
This residential income property offers approximately 3058 square feet of space, complemented by a 2100 square foot basement. The building is equipped with two AC units and two bathrooms. It also includes six parking spaces located behind the building. The property is situated in a prime location.
Key Highlights
- Prime location investment property
- Approximately 3058 sq ft plus a large 2100 sq ft basement
- Includes 6 parking spaces behind the building
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
$47,026
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
3.99%
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%
$940,520
$940.5K
Cap Rate 7%
$671,800
$671.8K
Cap Rate 9%
$522,511
$522.5K
Market Conditions
NOI Build-Up for 3,058 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
$91.7K $30.00/SF
− Vacancy
−$6.2K −$2.04/SF
EGI
$85.5K $27.96/SF
− OpEx
−$38.5K −$12.58/SF
NOI
$47.0K $15.38/SF
Area
Essex County, NJ
Vacancy
6.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
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%
$940,520
Cap Rate 7%
$671,800
Cap Rate 9%
$522,511
Alternative Uses
Best Use
Apartment 5plus
$671.8K
$587.8K – $783.8K
NOI $47,026 @ 7.0% cap · market cap 3.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$798.5K
$698.7K – $931.6K
NOI $55,895 @ 7.0% cap · market cap 4.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
685
Businesses Nearby
Explore this area
Business Placement
Demographics for 07009, NJ
13,014
Population
5,107
Households
2.5
Avg Household Size
46
Median Age
58%
College-Educated
97%
High-School Grad
4.2 sq mi
ZIP Area
3,099
Density / Sq Mi
$153,654
Median Household Income
$84,065
Median Earnings
$1,693
Median Rent
$600,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Residential income property featuring a basement and parking spaces.
Where is this residential income property located?
The property is located at 509 Pompton Ave Cedar Grove, NJ.
What is the asking price?
The asking price for this property is $1,180,000.
What are key features of this property?
This property features: Prime location investment property; Approximately 3058 sq ft plus a large 2100 sq ft basement; Includes 6 parking spaces behind the building
