Renovated Mixed-Use Building For
For Sale
Contact for pricing
541 Union Ave, Paterson, NJ 07522
Mixed-use property with bar/restaurant and residential units.
Property Size1,927 SF
Price / SF$272.44
Days on Market148
Property Features for 541 Union Ave
General Information
Standard status
Active
Size
1,927 SF
Property subtype
Mixed Use
Zoning
COMMERCIAL
Occupancy
100%
Building Details
Year Built
1950
Year Renovated
2023
Stories
2
Units
2
Listing Agency:
CENTURY 21 JR Gold Team Realty
(973) 772-9404
Listed By:
Johnny Rojas · License #NJ 0017014
Source:
Crexi
Added: Mar 27
Changed: Aug 17
Last Checked: Aug 18 at 11:05PM
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 CENTURY 21 JR Gold Team Realty
Investment Insights
Based on property information with market context.
This mixed-use building, totally renovated in 2023, presents an excellent ownership opportunity near the center of Paterson. The first floor features EL CUBETAZO BAR & KARAOKE & SPORTS, offered for sale without a liquor license. It includes brand new refrigeration equipment, featuring 2 glass door back bar coolers, 1 bottle cooler, and 1 ice machine. The bar area is equipped with a 3-compartment sink, an additional sink, 2 ice bins with 7 circuit boards, 1 glass rack, and 1 glasswasher machine, along with a 2 soda gun system connected to the ice bin. There is also an additional standing freezer. The bar boasts granite countertops, new furniture including bar stools, tables, regular chairs, and leather couches. Architectural details include crown molding, LED lighting, and recessed ceiling lighting. The sound system comprises 2 JBL speakers, 10 in-ceiling speakers, and a SONOS system. Thirteen Samsung Smart TVs are installed, supported by fully wired Ethernet cabling and HDMI wiring with a switch and splitter. An EPSON projector and a 120' electric screen are also included, along with a digital LED display for the front window. The flooring is hardwood. The second floor contains a 2-bedroom apartment with a combined living room and kitchen, a full bathroom, and central air. The property also includes a full unfinished basement with a 1/2 bath. The property size is 1927 square feet.
Key Highlights
- Fully renovated in 2023, offering modern updates.
- Mixed‑use building providing income potential from a bar/karaoke business and a residential apartment.
- Fully equipped bar with brand new refrigeration equipment, furniture, and sound/video systems.
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
$29,469
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
5.61%
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%
$589,380
$589.4K
Cap Rate 7%
$420,986
$421.0K
Cap Rate 9%
$327,433
$327.4K
Market Conditions
NOI Build-Up for 1,927 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
$41.6K $21.60/SF
− Vacancy
−$2.3K −$1.21/SF
EGI
$39.3K $20.39/SF
− OpEx
−$9.8K −$5.10/SF
NOI
$29.5K $15.29/SF
Area
Paterson, NJ
Vacancy
5.60%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$589,380
Cap Rate 7%
$420,986
Cap Rate 9%
$327,433
Alternative Uses
Best Use
Specialty Retail
$421.0K
$368.4K – $491.2K
NOI $29,469 @ 7.0% cap · market cap 5.61%
Second Best
Mixed Use
$363.4K
$318.0K – $423.9K
NOI $25,436 @ 7.0% cap · market cap 4.84%
Theoretical Best
Office A
$503.2K
$440.3K – $587.0K
NOI $35,222 @ 7.0% cap · market cap 6.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,353
Businesses Nearby
84k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Dining 37%
Home Improvements & Furnishings 8%
Electronics 2%
Dollar Tree
Shops & Services
17,775 visits/mo
0.5 miles
Family Dollar
Shops & Services
12,242 visits/mo
0.4 miles
Dunkin' Donuts
Dining
10,207 visits/mo
0.4 miles
Checkers
Dining
8,796 visits/mo
0.0 miles
Burger King
Dining
7,341 visits/mo
0.4 miles
Demographics for 07522, NJ
23,345
Population
7,440
Households
3.1
Avg Household Size
31
Median Age
10%
College-Educated
77%
High-School Grad
0.9 sq mi
ZIP Area
25,939
Density / Sq Mi
$48,002
Median Household Income
$31,997
Median Earnings
$1,458
Median Rent
$264,000
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with bar/restaurant and residential units.
Where is this mixed-use property located?
The property is located at 541 Union Ave Paterson, NJ.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Fully renovated in 2023, offering modern updates.; Mixed‑use building providing income potential from a bar/karaoke business and a residential apartment.; Fully equipped bar with brand new refrigeration equipment, furniture, and sound/video systems.
