Restaurant with Residential Upper
For Sale
$420,000
104 North 4th Street, Reading, PA 19601
First-floor fully equipped restaurant with residential capacity above, suited for mixed-use ownership and an owner-operator setup.
Property Size2,968 SF
Price / SF$141.51
Days on Market110
Property Features for 104 North 4th Street
General Information
Standard status
Active
Size
2,968 SF
Property subtype
Multi-Family / Fee Simple
Zoning
COMMERCIAL,RESIDENTIAL
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$758
Amenities
No
Oven/Range - Gas, Refrigerator
Bathroom - Tub Shower, Kitchen - Eat-In
2+ Access Exits
No Pool
Building Details
Year Built
1900
Listing Agency:
Coldwell Banker Realty
(484) 721-0045
Listed By:
Myriam Dorsainville · License #RS370059
(484) 721-0045
Source:
Compass
Added: Apr 21
Changed: Aug 8
Last Checked: Jul 23 at 8:42AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This property is a mixed-use building featuring a fully equipped restaurant on the first floor, with substantial residential capacity above. The configuration supports food-service operations while retaining dedicated living space in the same structure.
Located in Reading, the offering is described as benefiting from local foot traffic and easy accessibility. Public transportation is also nearby, with a bus stop located less than 1 mile from the property.
For a tenant-buyer or owner-operator, the layout can support on-site restaurant use together with residential space overhead. It may also appeal to investors seeking a single building that combines income-generating food service with residential capacity, based on the property’s current configuration.
Located in Reading, the offering is described as benefiting from local foot traffic and easy accessibility. Public transportation is also nearby, with a bus stop located less than 1 mile from the property.
For a tenant-buyer or owner-operator, the layout can support on-site restaurant use together with residential space overhead. It may also appeal to investors seeking a single building that combines income-generating food service with residential capacity, based on the property’s current configuration.
Key Highlights
- First‑floor fully equipped restaurant with residential capacity above for mixed‑use living and business use
- Includes appliances: gas oven/range and refrigerator
- Interior features include eat‑in kitchen and tub/shower bathroom
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
$29,534
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
7.03%
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%
$590,680
$590.7K
Cap Rate 7%
$421,914
$421.9K
Cap Rate 9%
$328,156
$328.2K
Market Conditions
NOI Build-Up for 2,968 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
$41.7K $14.04/SF
− Vacancy
−$2.3K −$0.77/SF
EGI
$39.4K $13.27/SF
− OpEx
−$9.8K −$3.32/SF
NOI
$29.5K $9.95/SF
Area
Berks County, PA
Vacancy
5.50%
Lease Rate
$14.04 /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%
$590,680
Cap Rate 7%
$421,914
Cap Rate 9%
$328,156
Alternative Uses
Best Use
Specialty Retail
$421.9K
$369.2K – $492.2K
NOI $29,534 @ 7.0% cap · market cap 7.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$487.2K
$426.3K – $568.4K
NOI $34,106 @ 7.0% cap · market cap 8.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
989
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - First-floor fully equipped restaurant with residential capacity above, suited for mixed-use ownership and an owner-operator setup.
Where is this conventional restaurant located?
The property is located at 104 North 4th Street Reading, PA.
What is the asking price?
The asking price for this property is $420,000.
What are key features of this property?
This property features: First‑floor fully equipped restaurant with residential capacity above for mixed‑use living and business use; Includes appliances: gas oven/range and refrigerator; Interior features include eat‑in kitchen and tub/shower bathroom
