Mixed-Use Retail and
For Sale
$1,550,000
511 Bay Avenue, Point Pleasant Beach, NJ 08742
Two fully occupied retail storefronts and two residential apartments with tenant-paid utilities generate substantial annual gross income.
Property Size7,956 SF
Price / SF$194.82
Days on Market152
Property Features for 511 Bay Avenue
General Information
Standard status
Active
Size
7,956 SF
Property subtype
Mixed Use
Occupancy
100%
Additional Details
Multifamily Units
2
Amenities
3
Parking.
On Street.
Building Details
Tenancy
Multi
Listing Agency:
Keller Williams Realty Spring Lake
(848) 220-7120
Listed By:
Diane Glander
(848) 220-7120
Source:
Xome
Added: Mar 11
Changed: Aug 7
Last Checked: Aug 9 at 4:48AM
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 well-positioned mixed-use property includes two retail storefronts and two residential apartments, all currently occupied by long-term tenants. Retail Unit 1 is leased to a 20-year tenant, and Retail Unit 2 is leased to a 10-year tenant. The residential units include a 2BR apartment and a 3BR apartment, leased to tenants with 8-year and 3-year tenancies, respectively. Reported annual gross income totals $127,200, based on current monthly rent.
Tenants are currently month-to-month and the property is being marketed with an emphasis on stabilizing long-term lease renewals. Commercial units use gas heat (tenant-paid), while the apartments feature electric heat (tenant-paid). One retail space is fully renovated, while the second retail unit is described as offering solid condition with improvement upside.
Approximately 1,000 SF of additional second-floor space is currently used as tenant storage at no cost, which may support future expansion or conversion, subject to approvals. The apartments are described as functional and well-maintained with early-2000s finishes.
Tenants are currently month-to-month and the property is being marketed with an emphasis on stabilizing long-term lease renewals. Commercial units use gas heat (tenant-paid), while the apartments feature electric heat (tenant-paid). One retail space is fully renovated, while the second retail unit is described as offering solid condition with improvement upside.
Approximately 1,000 SF of additional second-floor space is currently used as tenant storage at no cost, which may support future expansion or conversion, subject to approvals. The apartments are described as functional and well-maintained with early-2000s finishes.
Key Highlights
- Mixed‑use property with 2 retail storefronts and 2 residential apartments, all currently occupied by long‑term, stable tenants
- Annual gross income of $127,200: Retail Unit 1 $3,100/mo, Retail Unit 2 $3,000/mo, 2BR $1,900/mo, 3BR $2,600/mo
- Tenant‑paid utilities: residential units use electric heat; commercial units use gas heat
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
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two fully occupied retail storefronts and two residential apartments with tenant-paid utilities generate substantial annual gross income.
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: Mixed‑use property with 2 retail storefronts and 2 residential apartments, all currently occupied by long‑term, stable tenants; Annual gross income of $127,200: Retail Unit 1 $3,100/mo, Retail Unit 2 $3,000/mo, 2BR $1,900/mo, 3BR $2,600/mo; Tenant‑paid utilities: residential units use electric heat; commercial units use gas heat
