Mixed-Use Property with
New
For Sale
$439,900
701 Birch St, Boonton, NJ 07005
B-2 zoning and a combination of office, studio, garage, storage, and apartment areas.
Property Size1,700 SF
Days on Market3
Property Features for 701 Birch St
General Information
Standard status
Active
Size
1,700 SF
Property subtype
Commercial
Zoning
B-2
Additional Details
Floor
Ground Floor
Road Access
Yes
Office Units
1
Taxes and HOA fees
Annual Taxes
$8,764
Building Details
Building Size
1,700 SF
Year Built
1920
Buildings
1
Stories
2
Units
3
Tenancy
Single
Listing Agency:
WILLIAM LAWRENCE AGENCY
(973) 917-4800
Listed By:
LAWRENCE BRUSH
Source:
Elliman
Added: Aug 28
Changed: Aug 29
Last Checked: Aug 29 at 8:32PM
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 WILLIAM LAWRENCE AGENCY
Investment Insights
Based on property information with market context.
Built in 1920, this mixed-use property combines a ground-floor office and studio with a garage, storage areas, and custom wood racking. The second floor contains a one-bedroom apartment, creating a varied configuration within the building. The property has been maintained by one long-term occupant and is scheduled for delivery vacant.
B-2 zoning applies to the property, which is positioned at the corner of Birch Street and Boonton Avenue in Boonton. Existing improvements include durable, low-maintenance interior and exterior finishes. The location records a walk score of 52 and a bike score of 31, reflecting somewhat walkable and somewhat bikeable conditions.
B-2 zoning applies to the property, which is positioned at the corner of Birch Street and Boonton Avenue in Boonton. Existing improvements include durable, low-maintenance interior and exterior finishes. The location records a walk score of 52 and a bike score of 31, reflecting somewhat walkable and somewhat bikeable conditions.
Key Highlights
- Mixed‑use building constructed in 1920
- Ground‑floor office and studio configuration
- Second‑floor one‑bedroom apartment
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
$26,010
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
5.91%
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%
$520,200
$520.2K
Cap Rate 7%
$371,571
$371.6K
Cap Rate 9%
$289,000
$289.0K
Market Conditions
NOI Build-Up for 1,700 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
$51.0K $30.00/SF
− Vacancy
−$16.3K −$9.60/SF
EGI
$34.7K $20.40/SF
− OpEx
−$8.7K −$5.10/SF
NOI
$26.0K $15.30/SF
Area
Morris County, NJ
Vacancy
32.00%
Lease Rate
$30.00 /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%
$520,200
Cap Rate 7%
$371,571
Cap Rate 9%
$289,000
Alternative Uses
Best Use
Office B
$371.6K
$325.1K – $433.5K
NOI $26,010 @ 7.0% cap · market cap 5.91%
Second Best
Mixed Use
$178.3K
$156.0K – $208.0K
NOI $12,481 @ 7.0% cap · market cap 2.84%
Theoretical Best
Office A
$443.9K
$388.4K – $517.9K
NOI $31,073 @ 7.0% cap · market cap 7.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
936
Businesses Nearby
Explore this area
Business Placement
Demographics for 07005, NJ
15,985
Population
6,115
Households
2.6
Avg Household Size
43
Median Age
56%
College-Educated
96%
High-School Grad
18.3 sq mi
ZIP Area
873
Density / Sq Mi
$126,411
Median Household Income
$66,198
Median Earnings
$1,779
Median Rent
$565,900
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - B-2 zoning and a combination of office, studio, garage, storage, and apartment areas.
Where is this mixed-use property located?
The property is located at 701 Birch St Boonton, NJ.
What is the asking price?
The asking price for this property is $439,900.
What are key features of this property?
This property features: Mixed‑use building constructed in 1920; Ground‑floor office and studio configuration; Second‑floor one‑bedroom apartment
