Restaurant Real Estate in New Jersey

Retail liquor licenses are issued by each municipality’s issuing authority, with oversight by the State Division of Alcoholic Beverage Control. A municipality may issue a new retail consumption license only while it has fewer than one such license per 3,000 residents, or fewer than one retail distribution license per 7,500 residents, so in many towns licenses change hands through transfers rather than new issuance. Ask the municipal clerk what is available in the town you are considering.

A person-to-person transfer is started by the buyer with an application to the municipality, and a place-to-place transfer moves a license to new premises. The current licensee must obtain a Tax Clearance Certificate from the Division of Taxation, and the municipality approves the transfer by resolution, which cannot be made contingent on the sale of real estate or a business. Plan the real estate timeline around the license process with your attorney.

Before a retail food establishment is built, converted or remodeled, plans and specifications must be submitted to the local health authority, which responds within 30 days. No construction may proceed except under plans approved by the health and construction authorities. A change of use also requires a new certificate of occupancy.

Confirm the condition and code compliance of the kitchen hood and fire suppression system, grease interceptor, gas and electrical service, HVAC, walk-ins and restrooms, and whether the equipment is included. Existing equipment can save time and cost, but your plans may still need health department and construction approval if you change the layout or the type of operation.

A use clause that covers your concept, exclusive-use protection, hours, venting and grease responsibilities, outdoor seating, signage, parking, rent abatement during build-out and permitting, assignment rights if you sell, and how a liquor license is treated. Your attorney reviews the final lease.

Yes. Municipal zoning controls whether a restaurant is permitted at a location and often sets parking, outdoor dining and hours conditions. Confirm with the zoning officer before committing, and if a variance is needed, factor the zoning board of adjustment timeline into your contingencies.

Yes. A restaurant or bar is a place of public accommodation under the Americans with Disabilities Act. Evaluate entrances, seating, restrooms and routes through the space, and make sure the lease states who handles any accessibility work.

Usually. Buying a restaurant’s business assets, such as equipment, inventory and goodwill, is a bulk sale, so the buyer files Form C-9600 with the Division of Taxation at least 10 business days before closing. Liquor license transfer certificates are handled separately by the Division’s license verification unit.