Two-Building Mixed-Use
For Sale
$2,950,000
515525 Bay Avenue, Point Pleasant Beach, NJ 08742
Two buildings combine retail space with four residential apartments and rear tenant parking.
Property Size5,609 SF
Price / SF$525.94
Days on Market33
Property Features for 515525 Bay Avenue
General Information
Standard status
Active
Size
5,609 SF
Total Parking Spaces
6
Property subtype
Mixed Use
Zoning
General Commercial
Site & Location
Highway Access
Yes
Public Transit
Yes
Units
Unit Mix
2 x 2BR/1BA, 2 x 1BR/1BA
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$15,422
Amenities
3
6 Parking Spaces. Unpaved.
83x137
Building Details
Buildings
2
Listing Agency:
RE/MAX Bay Point Realtors
(732) 899-8202
Listed By:
James Hannam · License #4217851
(732) 899-8202
Source:
Xome
Added: Jul 10
Changed: Aug 10
Last Checked: Aug 10 at 7:45AM
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 Bay Point Realtors
Investment Insights
Based on property information with market context.
This mixed-use property comprises two buildings with approximately 2,300 SF of combined retail area and four apartments. The residential component includes two 2-bedroom, 1-bath units and two 1-bedroom, 1-bath units, creating a blend of commercial and residential occupancy within the same asset. Six rear parking spaces are designated for tenants, with additional public parking available nearby.
The property is situated on Bay Avenue in Point Pleasant Beach, within the downtown area and near Route 35, the train station, and the boardwalk. General Commercial zoning supports the existing mixed-use configuration. The parcel measures 83x137, providing a defined site for the two-building layout.
The property is situated on Bay Avenue in Point Pleasant Beach, within the downtown area and near Route 35, the train station, and the boardwalk. General Commercial zoning supports the existing mixed-use configuration. The parcel measures 83x137, providing a defined site for the two-building layout.
Key Highlights
- Approximately 2,300 SF of combined retail space across 2 buildings
- Four apartments: two 2‑bedroom, 1‑bath units and two 1‑bedroom, 1‑bath units
- 6 rear tenant parking spaces; nearby public parking lots also available
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
$86,255
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
2.92%
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%
$1,725,100
$1.7M
Cap Rate 7%
$1,232,214
$1.2M
Cap Rate 9%
$958,389
$958.4K
Market Conditions
NOI Build-Up for 5,609 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
$168.3K $30.00/SF
− Vacancy
−$11.4K −$2.04/SF
EGI
$156.8K $27.96/SF
− OpEx
−$70.6K −$12.58/SF
NOI
$86.3K $15.38/SF
Area
Ocean 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%
$1,725,100
Cap Rate 7%
$1,232,214
Cap Rate 9%
$958,389
Alternative Uses
Best Use
Apartment 5plus
$1.23M
$1.08M – $1.44M
NOI $86,255 @ 7.0% cap · market cap 2.92%
Second Best
Retail
$1.14M
$1.00M – $1.33M
NOI $80,059 @ 7.0% cap · market cap 2.71%
Theoretical Best
Office A
$1.46M
$1.28M – $1.71M
NOI $102,524 @ 7.0% cap · market cap 3.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
354
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 - Two buildings combine retail space with four residential apartments and rear tenant parking.
Where is this mixed-use property located?
The property is located at 515525 Bay Avenue Point Pleasant Beach, NJ.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Approximately 2,300 SF of combined retail space across 2 buildings; Four apartments: two 2‑bedroom, 1‑bath units and two 1‑bedroom, 1‑bath units; 6 rear tenant parking spaces; nearby public parking lots also available
