Building Details

Number of units 2

Flooring type Carpet

Roof type Asphalt

Additional Structures Storage

Listing Agency: RIXON REALTY-S151 Show Phone

Listed By: PAUL RIXON · License #606500016 Show Phone

Added: Mar 13 Changed: Jul 28 Last Checked: Aug 24 at 11:06AM

Report an Issue

MLS# 605662

Copyright © 2026 South Jersey Shore Regional MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

Investment Insights

Based on property information with market context.

This two-story mixed-use building combines ground-floor flex office space with a separate second-floor apartment. The first floor offers approximately 1,800 square feet of office/flex space with two separate entrances, and the layout can be configured to accommodate multiple renters or remain open for a single tenant’s needs. The second floor includes an approximately 1,400 square foot 3-bedroom apartment with a living room, a large eat-in kitchen, and one full bath, with washer and dryer provided.

The property is described as having separate meters for different utilities. Additional documents provided include the floor plan and utility bills, along with income and expense information.

The building’s arrangement supports both office use on the main level and residential use above, with separate access points and utility metering intended to streamline operations for each portion.

Key Highlights

• 2‑story mixed‑use building with separate income‑producing spaces: 1,800 SF flex/office area plus a 1,400 SF 3‑bedroom apartment
• First floor offers 1,800 SF flex space with offices, 2 separate entrances, and restroom and storage building on site
• Second floor includes a 3‑bedroom apartment with living room, large eat‑in kitchen, 1 full bath, and washer/dryer

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

$29,442

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

5.66%

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%

$588,840 $588.8K

Cap Rate 7%

$420,600 $420.6K

Cap Rate 9%

$327,133 $327.1K

Market Conditions

NOI Build-Up for 1,800 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

$50.3K $27.96/SF

− Vacancy

−$11.1K −$6.15/SF

EGI

$39.3K $21.81/SF

− OpEx

−$9.8K −$5.45/SF

NOI

$29.4K $16.36/SF

Area

Cape May County, NJ

Vacancy

22.00%

Lease Rate

$27.96 /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%

$588,840

Cap Rate 7%

$420,600

Cap Rate 9%

$327,133

Alternative Uses

Best Use

Office B

$420.6K

$368.0K – $490.7K (±1% cap)

NOI $29,442 @ 7.0% cap · market cap 5.66%

Second Best

Mixed Use

$230.7K

$201.8K – $269.1K (±1% cap)

NOI $16,146 @ 7.0% cap · market cap 3.11%

Theoretical Best

Office A

$551.0K

$482.1K – $642.8K (±1% cap)

NOI $38,569 @ 7.0% cap · market cap 7.42%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Live-work space

Lease Details

1

Residential units

Location Intelligence

Trade Area within ½ mile

161

Businesses Nearby

Explore this area Business Placement

Demographics for 08230, NJ

5,908

Population

2,669

Households

2.2

Avg Household Size

49

Median Age

44%

College-Educated

98%

High-School Grad

19.5 sq mi

ZIP Area

303

Density / Sq Mi

$110,667

Median Household Income

$63,750

Median Earnings

$1,757

Median Rent

$406,900

Median Home Value

Market

Vacancy Rate% for Office in Northeast region

13.1% 2019

15.4% 2020

17.6% 2021

19.1% 2022

20.2% 2023

20.9% 2024

19.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this live-work space located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Similar For Sale Nearby

Renovated Corner Office Suite

2 Harrys Ct, Palermo, NJ 08226

$179,900

View details

Two-Story Mixed-Use Flex Building

904 Route 9, Palermo, NJ 08230

$499,900

View details

Frequently Asked Questions

What type of property is this?

Live-work space - Two-story building with ground-floor flex office space and a separate second-floor 3-bedroom apartment.

Where is this live-work space located?

The property is located at 904 South Shore Road Palermo, NJ.

What is the asking price?

The asking price for this property is $519,900.

What are key features of this property?

This property features: 2‑story mixed‑use building with separate income‑producing spaces: 1,800 SF flex/office area plus a 1,400 SF 3‑bedroom apartment; First floor offers 1,800 SF flex space with offices, 2 separate entrances, and restroom and storage building on site; Second floor includes a 3‑bedroom apartment with living room, large eat‑in kitchen, 1 full bath, and washer/dryer