1508 Front Street
Excellent Investment Opportunity in Scotch Plains
Marketing description
This property was previously used as a construction and overhead garage company for many years. The lot behind the main building is approximately 100' x 120'. In addition, there is a second building on the property facing 111 Terrill Road, currently leased to Rita’s Ice and Subway, providing steady rental income.
The Front Street building offers approximately 1,200 sq. ft. of office space, along with a 600 sq. ft. garage—ideal for running your own business while benefiting from two existing income-producing tenants to help offset the mortgage.
The property is zoned B-2, and the owner may assist in pursuing a variance for alternative uses if desired. Located in an X Flood Zone, no flood insurance is required.
The vacant lot behind the building presents a great opportunity for additional income. With a use variance, it could be rented to a business requiring storage for trucks, cars, buses, or limousines. If approved by the town, this space is estimated to generate approximately $5,000 per month in rental income. The owner is open to contributing toward the cost of securing the variance, making this an even more attractive investment opportunity.
Investment highlights
opportunity in Scotch Plains, NJ Dual-Building Property with Long-Term Tenants This unique commercial property offers a rare combination of income-generating tenants, a vacant building, and a large vacant lot, all on one deed. The property spans two addresses: 1508 Front Street (44x238) and 111 Terrill Road (116x100) in Scotch Plains. Existing Tenants: Rita's Ice Cream (Terrill Road frontage): Long-standing tenant of over 20 years with a 10-year lease in place. Current rent is $2,725/month with annual increases. Tenant pays all utilities. Subway Sandwich Shop (adjacent to Rita's): 10-year lease with $2,984/month rent and annual increases. Tenant pays all utilities. Additional Building (1508 Front Street): Currently vacant, featuring 1,200 sq. ft. of office space with an attached 600 sq. ft. garage. Estimated rental potential: $2,500/month. Vacant Lot: Approx. 70x140; ideal for truck, landscaping, or tree service parking. Current B-2 zoning does not allow overnight parking. Buyer would need to pursue a use variance to permit overnight parking year-round. The seller is willing to wait a reasonable period for the buyer to secure this variance. Investment Highlights: Total property taxes: $24,000/year Multiple streams of income with long-term, reliable tenants. Opportunity for owner-operator to generate additional revenue from the vacant lot if variance is approved. Excellent location with high visibility and dual street frontage. This property is ideal for investors seeking immediate income or business owners looking to operate from
a central location while leveraging rental income from existing tenants. Step 1: Annual Rental Income with Land Lease Rita's Ice Cream: $2,725 x 12 = $32,700/year Subway: $2,984 × 12 = $35,808/year 1508 Front Street building: $2,500 x 12 = $30,000/year Vacant lot lease: $5,000 x 12 = $60,000/year Total potential rental income: 32,700+35,808+30,000+60,000=158,508 per year Step 2: Net Operating Income (NOI) Taxes: $24,000/year NOI = $158,508-$24,000 = $134,508/year Step 3: Cap Rate Calculation Cap Rate=Purchase PriceNOIx100 Cap Rate=1,650,000134,508×100-8.15% Summary with Land Lease: Total Potential Income: $158,508/year NOI: $134,508/year Cap Rate: ~8.2% This would be a very attractive investment cap rate.
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