17-19 W Delaware Ave 5 Unit Apartment Building $1,610,385 CAD ($322,077 CAD/Unit) 5.91% Cap Rate Pennington, NJ 08534

OFFERING SUMMARY
17-19 W. Delaware Avenue | Pennington, NJ 08534 | Mercer County
Asking Price: $1,175,000 | 5-Unit Multifamily | Cap Rate: 5.9% (T-12)
TMG Commercial Real Estate is pleased to present 17-19 W. Delaware Avenue, a well-maintained 5-unit multifamily asset situated in the walkable core of downtown Pennington Borough, Mercer County, New Jersey. The property is a character-rich older building that has been thoughtfully maintained and selectively improved, offering stable in-place income, a reduced near-term capital expenditure profile, and a clearly defined value-add pathway for an acquiring investor.
INVESTMENT HIGHLIGHTS
- Trailing 12-Month Gross Revenue: $106,486
- Trailing 12-Month NOI: $69,402
- Expense Ratio: 34.8% (well-controlled operating profile)
- NOI Per Unit: $13,880/year
- Unit Mix: 2 x 2BR / 3 x 1BR
- Targeted capital improvements completed: new roof, upgraded electrical, solar panels, renovated kitchens
- Municipal parking directly behind the building
- Old-world character and charm consistent with Pennington Borough's architectural fabric
VALUE-ADD OPPORTUNITY
The property presents a two-component upside story totaling approximately $400,000 in projected value creation at a 7.0% cap rate:
1. Organic Rent Growth - In-place rents across the existing 5-unit portfolio are below rents currently being achieved within the building. A conservative aggregate increase of $900/month ($10,800/year) is supportable without additional capital investment.
2. 6th Unit Conversion - Existing third-floor storage space presents a conversion opportunity to create an additional income-producing apartment. Based on in-building comparable rents, a stabilized rent of $1,500/month ($18,000/year) is achievable.
Combined incremental NOI: $28,800/year | Implied value creation at 7.0% cap: ~$411,000
MARKET OVERVIEW
Pennington Borough is among Central New Jersey's most sought-after small-borough markets, characterized by top-rated public schools, high household incomes, low vacancy, and a walkable downtown that attracts stable, long-term professional tenants. Regional connectivity via Route 31 and proximity to I-95/I-295 broadens the commuter catchment to Princeton, Trenton, and Philadelphia markets.
IDEAL BUYER PROFILE
This offering is well-suited for a self-managing private investor, a 1031 exchange buyer seeking a stable asset in a premium location, or a value-add operator with the appetite to execute the rent growth and conversion strategy. The property is priced on actual trailing performance, the upside is the buyer's to capture.
For financials, rent roll, or to schedule a tour, contact listing broker directly.