Three-Story Rehabilitation
For Sale
Contact for pricing
728 Bunn Drive, Princeton, NJ 08540
Three-story institutional building with 72 patient rooms and approvals for 102 beds on a secluded campus.
Property Size67,000 SF
Lot Size6.27 Acres
Price / SF$225
Days on Market49
Property Features for 728 Bunn Drive
General Information
Standard status
Active
Size
67,000 SF
Lot size
6.27 Acres
Property subtype
Office, Special Purpose
Zoning
OR-1 T District
Lease Type
NNN
Investment Type
Value Add
Additional Details
Sprinkler System
Yes
Commercial Hood
Yes
Building Details
Year Built
2000
Year Renovated
2023
Buildings
1
Stories
3
Units
72
Tenancy
Single
Listing Agency:
Wolf Commercial Real Estate New Jersey
(856) 857-6300
Listed By:
Jason Wolf · License #NJ 9696397
Source:
Crexi
Added: Jul 7
Changed: Aug 23
Last Checked: Aug 23 at 8:22PM
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 Wolf Commercial Real Estate New Jersey
Investment Insights
Based on property information with market context.
The property at 728 Bunn Drive is a +/- 67,000-square-foot, three-story institutional building on a 6.27-acre secluded campus. Built in 2000, it is designed for healthcare operations and is currently configured with 72 patient rooms, with approval for 102 beds and potential to expand to 144. Plumbing is run to each individual room, and the interior layout contains no load-bearing walls, allowing for flexible reconfiguration of the floor plan. The facility is fully sprinklered and ADA compliant and includes two elevators. A commercial-grade kitchen is included with an 8' x 10' walk-in refrigerator.
The property is located along Bunn Drive in the northern section of Princeton, with convenient access to the region’s primary commuter routes and commercial corridors. It is minutes from downtown Princeton and Princeton University.
Zoning is OR-1, and the property benefits from an approved D(3) variance and a site plan waiver permitting use as a substance abuse rehabilitation facility.
The property is located along Bunn Drive in the northern section of Princeton, with convenient access to the region’s primary commuter routes and commercial corridors. It is minutes from downtown Princeton and Princeton University.
Zoning is OR-1, and the property benefits from an approved D(3) variance and a site plan waiver permitting use as a substance abuse rehabilitation facility.
Key Highlights
- Three‑story institutional building built in 2000 on a 6.27‑acre secluded campus at 728 Bunn Drive (Princeton, NJ).
- Currently 72 patient rooms, with approval for 102 beds and potential to expand to 144.
- OR‑1 T zoning with an approved D(3) variance and a site plan waiver for use as a substance abuse rehabilitation facility.
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
$930,376
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
6.17%
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%
$18,607,520
$18.6M
Cap Rate 7%
$13,291,086
$13.3M
Cap Rate 9%
$10,337,511
$10.3M
Market Conditions
NOI Build-Up for 67,000 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
$1.98M $29.52/SF
− Vacancy
−$427.2K −$6.38/SF
EGI
$1.55M $23.14/SF
− OpEx
−$620.3K −$9.26/SF
NOI
$930.4K $13.89/SF
Area
Mercer County, NJ
Vacancy
21.60%
Lease Rate
$29.52 /SF/Yr
Expense Ratio
40.00%
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%
$18,607,520
Cap Rate 7%
$13,291,086
Cap Rate 9%
$10,337,511
Alternative Uses
Best Use
Healthcare Medical
$13.29M
$11.63M – $15.51M
NOI $930,376 @ 7.0% cap · market cap 6.17%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$21.56M
$18.86M – $25.15M
NOI $1,508,947 @ 7.0% cap · market cap 10.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
398
Businesses Nearby
Explore this area
Business Placement
Demographics for 08540, NJ
48,216
Population
19,255
Households
2.5
Avg Household Size
41
Median Age
82%
College-Educated
98%
High-School Grad
51.7 sq mi
ZIP Area
933
Density / Sq Mi
$169,898
Median Household Income
$80,357
Median Earnings
$2,083
Median Rent
$723,400
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Rehabilitation center - Three-story institutional building with 72 patient rooms and approvals for 102 beds on a secluded campus.
Where is this rehabilitation center located?
The property is located at 728 Bunn Drive Princeton, NJ.
What is the asking price?
The asking price for this property is $15,075,000.
What are key features of this property?
This property features: Three‑story institutional building built in 2000 on a 6.27‑acre secluded campus at 728 Bunn Drive (Princeton, NJ).; Currently 72 patient rooms, with approval for 102 beds and potential to expand to 144.; OR‑1 T zoning with an approved D(3) variance and a site plan waiver for use as a substance abuse rehabilitation facility.
