Established Day Care
New
For Sale
$849,000
1 Confidential Avenue, Allentown, PA 18109
COMMERCIAL - Allentown, PA
Property Size8,832 SF
Lot Size1.20 Acres
Price / SF$96.13
Days on Market3
Property Features for 1 Confidential Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Industrial
Subdivision
Allentown City
Standard status
Active
APN
000000
Size
8,832 SF
Lot size
1.20 Acres
Taxes and HOA fees
Tax Annual Amount
19280
Building Details
Year built
1979
Floors in Building
1
Listing Agency:
SER Commercial Real Estate, LLC
(570) 431-7400
Listed By:
George Vlamis · License #RS278068
(570) 431-7400
Added: Aug 11
Changed: Aug 13
Last Checked: Aug 13 at 5:06PM
MLS# PM-143890
Copyright © 2026 Pocono Mountains Association of Realtors. 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 established child care facility occupies an approximately 8,832-square-foot building on 1.2 acres in Allentown. Built in 1979, the property has supported an operating child care business for more than 20 years and is currently licensed for 119 children. The facility carries a STAR 4 rating and includes on-site parking.
Light Industrial zoning provides a commercial framework for the existing use and may support office, medical, professional, or contractor-oriented applications subject to applicable approvals. Child care operations may also be expanded to a stated capacity of 155 children, subject to licensing and regulatory requirements. The property combines an operating facility with an adaptable commercial building and substantial land area.
Light Industrial zoning provides a commercial framework for the existing use and may support office, medical, professional, or contractor-oriented applications subject to applicable approvals. Child care operations may also be expanded to a stated capacity of 155 children, subject to licensing and regulatory requirements. The property combines an operating facility with an adaptable commercial building and substantial land area.
Key Highlights
- 8,832 SF building on 1.2 acres
- Licensed for 119 children, with stated capacity potential of 155
- More than 20 years of child care operating history
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
$47,947
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
5.65%
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%
$958,940
$958.9K
Cap Rate 7%
$684,957
$685.0K
Cap Rate 9%
$532,744
$532.7K
Market Conditions
NOI Build-Up for 8,832 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
$68.9K $7.80/SF
− Vacancy
−$5.0K −$0.56/SF
EGI
$63.9K $7.24/SF
− OpEx
−$16.0K −$1.81/SF
NOI
$47.9K $5.43/SF
Area
Allentown, PA
Vacancy
7.20%
Lease Rate
$7.80 /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%
$958,940
Cap Rate 7%
$684,957
Cap Rate 9%
$532,744
Alternative Uses
Best Use
Office B
$685.0K
$599.3K – $799.1K
NOI $47,947 @ 7.0% cap · market cap 5.65%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.74M
$1.52M – $2.02M
NOI $121,458 @ 7.0% cap · market cap 14.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,978
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 18109, PA
18,915
Population
7,395
Households
2.6
Avg Household Size
37
Median Age
19%
College-Educated
80%
High-School Grad
8.2 sq mi
ZIP Area
2,307
Density / Sq Mi
$55,437
Median Household Income
$36,632
Median Earnings
$1,239
Median Rent
$180,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Roots to Wings Play — 2224 Industrial Dr Unit 103, Bethlehem, PA 18017
- Bright Futures Child Care Center, LLC — 1320 N Sherman St, Allentown, PA 18109
- Miles Of Smiles Learning Center — 1509 E Pennsylvania St, Allentown, PA 18109
- Little People East Child Care School — 1320 N Sherman St, Allentown, PA 18109
Frequently Asked Questions
What type of property is this?
Day care center - Licensed child care facility with on-site parking and Light Industrial zoning.
Where is this day care center located?
The property is located at 1 Confidential Avenue Allentown, PA.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: 8,832 SF building on 1.2 acres; Licensed for 119 children, with stated capacity potential of 155; More than 20 years of child care operating history
