Metro526 Apartment
For Sale
$19,250,000
526 North Ave, Dunellen, NJ 08812
Multifamily asset offered for sale with a stated 5.76% cap rate.
Property Size38,962 SF
Days on Market110
Property Features for 526 North Ave
General Information
Standard status
Active
Size
38,962 SF
Property subtype
Multifamily
Occupancy
100%
Additional Details
Cap Rate
5.76%
Amenities
NJ Transit Access to NYC
Strong Tenant Demand Drivers
Limited Comparable Inventory
Building Details
Building Size
38,962 SF
Units
40
Listing Agency:
Marcus & Millichap - New Jersey
(201) 742-6118
Listed By:
Alan Cafiero · License #License(s): NJ: 0791092
(201) 742-6118
Source:
Marcusmillichap
Added: May 14
Changed: Aug 30
Last Checked: Aug 30 at 7:49PM
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 Marcus & Millichap - New Jersey
Investment Insights
Based on property information with market context.
Metro526 Apartments is an apartment building at 526 North Ave in Dunellen, New Jersey. The property is identified as a multifamily asset and is offered for sale.
The stated cap rate is 5.76%. The address is in Middlesex County and carries the ZIP code 08812.
The stated cap rate is 5.76%. The address is in Middlesex County and carries the ZIP code 08812.
Key Highlights
- Apartment building at 526 North Ave, Dunellen, NJ 08812
- 5.76% stated cap rate
- Multifamily property offered for sale
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
$599,158
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
3.11%
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%
$11,983,160
$12.0M
Cap Rate 7%
$8,559,400
$8.6M
Cap Rate 9%
$6,657,311
$6.7M
Market Conditions
NOI Build-Up for 38,962 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
$1.17M $30.00/SF
− Vacancy
−$79.5K −$2.04/SF
EGI
$1.09M $27.96/SF
− OpEx
−$490.2K −$12.58/SF
NOI
$599.2K $15.38/SF
Area
Middlesex 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%
$11,983,160
Cap Rate 7%
$8,559,400
Cap Rate 9%
$6,657,311
Alternative Uses
Best Use
Apartment 5plus
$8.56M
$7.49M – $9.99M
NOI $599,158 @ 7.0% cap · market cap 3.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.17M
$8.90M – $11.87M
NOI $712,163 @ 7.0% cap · market cap 3.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
751
Businesses Nearby
Explore this area
Business Placement
Demographics for 08812, NJ
14,593
Population
4,916
Households
3
Avg Household Size
40
Median Age
42%
College-Educated
88%
High-School Grad
5.1 sq mi
ZIP Area
2,861
Density / Sq Mi
$119,534
Median Household Income
$50,266
Median Earnings
$1,557
Median Rent
$435,300
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?
Apartment building - Multifamily asset offered for sale with a stated 5.76% cap rate.
Where is this apartment building located?
The property is located at 526 North Ave Dunellen, NJ.
What is the asking price?
The asking price for this property is $19,250,000.
What are key features of this property?
This property features: Apartment building at 526 North Ave, Dunellen, NJ 08812; 5.76% stated cap rate; Multifamily property offered for sale
