Downtown Mixed-Use Investment
For Sale
$1,550,000
511 Bay Avenue, Point Pleasant Beach, NJ 08742
Four-unit mixed-use property with retail and residential spaces.
Property Size7,956 SF
Lot Size0.12 Acres
Price / SF$194.82
Days on Market150
Property Features for 511 Bay Avenue
General Information
Standard status
Active
Size
7,956 SF
Lot size
0.12 Acres
Property subtype
Commercial
Amenities
Baseboard Heating
Forced Air Heating
On Street
Listing Agency:
KELLER WILLIAMS REALTY SPRING LAKE
(848) 220-7120
Listed By:
DIANE GLANDER
Source:
Corcoran
Added: Mar 14
Changed: Aug 9
Last Checked: Aug 9 at 8:35AM
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 KELLER WILLIAMS REALTY SPRING LAKE
Investment Insights
Based on property information with market context.
This mixed-use property presents an investment opportunity in the downtown area. The building includes four units, with two retail spaces on the ground floor and two apartments upstairs, consisting of a 2-bedroom and a 3-bedroom unit. The building also features storage space. The total size of the building is approximately 7956 square feet. Bay Avenue allows for office space on the first floor, which Arnold Avenue does not, presenting an added bonus.
Key Highlights
- Investment opportunity with long‑term tenants in all 4 units
- Located downtown
- Includes 2 retail units and 2 apartments (2‑bedroom and 3‑bedroom)
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
$133,153
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
8.59%
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%
$2,663,060
$2.7M
Cap Rate 7%
$1,902,186
$1.9M
Cap Rate 9%
$1,479,478
$1.5M
Market Conditions
NOI Build-Up for 7,956 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
$203.4K $25.56/SF
− Vacancy
−$13.1K −$1.65/SF
EGI
$190.2K $23.91/SF
− OpEx
−$57.1K −$7.17/SF
NOI
$133.2K $16.74/SF
Area
Ocean County, NJ
Vacancy
6.46%
Lease Rate
$25.56 /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%
$2,663,060
Cap Rate 7%
$1,902,186
Cap Rate 9%
$1,479,478
Alternative Uses
Best Use
Multifamily LT 5
$1.90M
$1.66M – $2.22M
NOI $133,153 @ 7.0% cap · market cap 8.59%
Second Best
Apartment 5plus
$1.75M
$1.53M – $2.04M
NOI $122,347 @ 7.0% cap · market cap 7.89%
Theoretical Best
Office A
$2.08M
$1.82M – $2.42M
NOI $145,423 @ 7.0% cap · market cap 9.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,050
Businesses Nearby
Explore this area
Business Placement
Demographics for 08742, NJ
25,056
Population
12,604
Households
2
Avg Household Size
46
Median Age
52%
College-Educated
95%
High-School Grad
5.6 sq mi
ZIP Area
4,474
Density / Sq Mi
$111,983
Median Household Income
$57,547
Median Earnings
$1,879
Median Rent
$576,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Four-unit mixed-use property with retail and residential spaces.
Where is this mixed-use property located?
The property is located at 511 Bay Avenue Point Pleasant Beach, NJ.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: Investment opportunity with long‑term tenants in all 4 units; Located downtown; Includes 2 retail units and 2 apartments (2‑bedroom and 3‑bedroom)
