63-65 Main St
Paterson, NJ 07505
Commerce de détail Propriété À vendre

Investment and owner-user opportunity at 63-65 Main Street in downtown Paterson. The approximately 6,000-square-foot, three-story building was gut-renovated in 2021 and contains roughly 2,000 square feet per floor. The first-floor retail space is occupied by a clothing-store tenant paying $3,000 per month. Approximately 4,000 square feet across the second and third floors is available for immediate owner occupancy.
OFFICE LEASE-UP SCENARIO: Based on a projected office rental rate of $18.00 per square foot per year for the approximately 4,000 square feet of upper-floor office space, projected office rent is $72,000 per year. Including $36,000 of existing retail rent and $1,080 of tenant water reimbursement, projected annual income is $109,080. Projected annual operating expenses are $26,997: approximately $15,647 in 2025 property taxes, $5,000 insurance, $3,600 water, $750 security, and $2,000 maintenance. Projected NOI is $82,083, representing a pro forma cap rate of 11.74% at the $699,000 asking price.
RESIDENTIAL CONVERSION SCENARIO: Plans have been prepared for a proposed conversion of the upper floors into four apartments—two one-bedroom and two two-bedroom units. The plans are expected to be submitted to the zoning board for variance approval; the variance and residential conversion are not currently approved. At a projected rent of $2,500 per apartment per month, projected annual income including the existing retail rent and water reimbursement is $157,080. With the same projected annual operating expenses of $26,997, projected NOI is $130,083. The $699,000 asking price plus an estimated $150,000 one-time conversion budget results in a projected total cost basis of $849,000 and a projected yield on cost of 15.32%. The pro forma cap rate based only on the asking price is 18.61%.
Both scenarios assume full occupancy and no vacancy, management fee, financing cost, or additional operating costs. The residential scenario also assumes zoning approval, completion of construction within the stated budget, and successful lease-up. Buyers must independently verify all dimensions, rents, expenses, taxes, zoning, plans, approvals, construction costs, and development feasibility.