Building Details

Year Built 1944

Listing Agency: KELLER WILLIAMS REALTY FREEHOLD h***@gmail.com Show Phone

Listed By: IFTIKHAR HAQ · License #0789304

Source: Corcoran

Added: Mar 10 Changed: Aug 20 Last Checked: Aug 20 at 6:10AM

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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 FREEHOLD

Investment Insights

Based on property information with market context.

The Budget Inn Suites is a 41-room hospitality property located along the Black Horse Pike corridor in Mays Landing, New Jersey. As an extended stay, limited service property, it benefits from its location on a highly trafficked corridor, offering regional accessibility and proximity to Atlantic City. The property experiences consistent demand from leisure travelers, contractors, and regional business activity. This property presents an opportunity to acquire a hospitality asset with visibility and drive-by traffic. There is potential for operational upside through improved management, branding, and revenue optimization. The property size is 11464 square feet.

Key Highlights

• High‑traffic location on the Black Horse Pike corridor.
• Proximity to Atlantic City.
• Consistent demand from leisure travelers, contractors, and regional business activity.

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

$82,334

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

2.94%

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%

$1,646,680 $1.6M

Cap Rate 7%

$1,176,200 $1.2M

Cap Rate 9%

$914,822 $914.8K

Market Conditions

NOI Build-Up for 11,464 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

$206.4K $18.00/SF

− Vacancy

−$33.0K −$2.88/SF

EGI

$173.3K $15.12/SF

− OpEx

−$91.0K −$7.94/SF

NOI

$82.3K $7.18/SF

Area

Mercer County, NJ

Vacancy

16.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

52.50%

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%

$1,646,680

Cap Rate 7%

$1,176,200

Cap Rate 9%

$914,822

Alternative Uses

Best Use

Hotel Hospitality

$1.18M

$1.03M – $1.37M (±1% cap)

NOI $82,334 @ 7.0% cap · market cap 2.94%

Second Best

—

—

no second resolved use

Theoretical Best

Warehouse

$3.69M

$3.23M – $4.30M (±1% cap)

NOI $258,188 @ 7.0% cap · market cap 9.22%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Motels

Location Intelligence

Trade Area within ½ mile

283

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 08330, NJ

29,548

Population

12,800

Households

2.3

Avg Household Size

41

Median Age

31%

College-Educated

94%

High-School Grad

127.4 sq mi

ZIP Area

232

Density / Sq Mi

$82,981

Median Household Income

$40,880

Median Earnings

$1,576

Median Rent

$230,700

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Motel - 41-room hospitality property in Mays Landing, New Jersey.

Where is this motel located?

The property is located at 6090 Black Horse #Budget Inn & Suites Hamilton Township, NJ.

What is the asking price?

The asking price for this property is $2,800,000.

What are key features of this property?

This property features: High‑traffic location on the Black Horse Pike corridor.; Proximity to Atlantic City.; Consistent demand from leisure travelers, contractors, and regional business activity.