Building Details

Building Size 2,000 SF

Year Built 1978

Listing Agency: KELLER WILLIAMS PRIME REALTY

Listed By: Michelle Christine Sheppard Show Phone

Source: Evrealestate

Added: Apr 6 Changed: Aug 23 Last Checked: Sep 9 at 6:47AM

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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 PRIME REALTY

Investment Insights

Based on property information with market context.

Turnkey commercial property combining a fully operational restaurant and an attached bait & tackle shop. The restaurant includes classic diner-style seating and an open-concept kitchen. The bait shop features a large walk-in cold storage area designed for high-volume inventory.

Located along the Delaware Bay in Fortescue, the property is described as being just minutes from the marina and popular fishing areas, serving both locals and seasonal visitors. A spacious parking lot accommodates boats and trailers, supporting busy summer demand.

The offering is positioned as an investment property with multiple revenue streams through the restaurant and bait shop operations. The remarks also note that city sewer is coming soon.

Key Highlights

• Turnkey commercial property in Fortescue, NJ featuring a restaurant and an attached bait & tackle shop
• Restaurant includes classic diner‑style seating and an open‑concept kitchen
• Bait shop has large walk‑in cold storage for high‑volume inventory

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

$28,022

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

7.19%

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%

$560,440 $560.4K

Cap Rate 7%

$400,314 $400.3K

Cap Rate 9%

$311,356 $311.4K

Market Conditions

NOI Build-Up for 2,000 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

$39.0K $19.50/SF

− Vacancy

−$1.6K −$0.82/SF

EGI

$37.4K $18.68/SF

− OpEx

−$9.3K −$4.67/SF

NOI

$28.0K $14.01/SF

Area

Cumberland County, NJ

Vacancy

4.20%

Lease Rate

$19.50 /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%

$560,440

Cap Rate 7%

$400,314

Cap Rate 9%

$311,356

Alternative Uses

Best Use

Specialty Retail

$400.3K

$350.3K – $467.0K (±1% cap)

NOI $28,022 @ 7.0% cap · market cap 7.19%

Second Best

Retail

$344.9K

$301.8K – $402.4K (±1% cap)

NOI $24,142 @ 7.0% cap · market cap 6.19%

Theoretical Best

Office A

$3.00M

$2.63M – $3.50M (±1% cap)

NOI $210,211 @ 7.0% cap · market cap 53.90%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Higbee's Luncheonette Restaurant

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

29

Businesses Nearby

Explore this area Business Placement

Demographics for 08321, NJ

189

Population

298

Households

0.6

Avg Household Size

57

Median Age

18%

College-Educated

88%

High-School Grad

8.8 sq mi

ZIP Area

21

Density / Sq Mi

$52,500

Median Household Income

$213,200

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Turnkey restaurant with open-concept kitchen plus attached bait and tackle shop with walk-in cold storage.

Where is this conventional restaurant located?

The property is located at 814 Downe Ave Fortescue, NJ.

What is the asking price?

The asking price for this property is $389,999.

What are key features of this property?

This property features: Turnkey commercial property in Fortescue, NJ featuring a restaurant and an attached bait & tackle shop; Restaurant includes classic diner‑style seating and an open‑concept kitchen; Bait shop has large walk‑in cold storage for high‑volume inventory