Charming Inn & Restaurant, Ample Parking, High Income Potential
Property size:
3,648 SF
Description
Added:
Feb 3, 2025
Days on Market:
352
This exceptional commercial property, located at 245 Durham Road in Ottsville, Pennsylvania, presents a rare opportunity to acquire a well-established and profitable business. The Ottsville Inn, a historic landmark dating back to the early 1800s, boasts a rich history of operation as an inn and restaurant for over 90 years. Currently family-owned and operated, the inn features a welcoming dining room, a full-service bar with high-top seating, and outdoor dining on a covered porch. The property includes a spacious parking lot accommodating approximately 33 vehicles, two restrooms for patrons, and a substantial kitchen and prep area. The lower level offers extensive storage space. The second and third floors provide an office, additional storage, and income-producing residential rentals generating approximately $38,000 annually. The property sits on a 0.41-acre lot and encompasses 3,648 square feet. Annual property taxes are low at $5,207. Its convenient location north of Doylestown, minutes from Route 611/Easton Road and near Routes 413, 113, and 563, ensures high visibility and accessibility, attracting patrons from various directions, including New Jersey. The proximity to Lake Nockamixon, Nockamixon State Park, and other Bucks County attractions further enhances its appeal. A backup generator powers the basement, first, and second floors. A liquor license is included in the sale. All furniture, fixtures, and equipment are included, excluding coffee machines, soda machines, and the jukebox. Various uses are permitted under VC zoning. This presents a remarkable investment opportunity for a discerning buyer.
Property Features for 245 Durham Rd
General Information
Property type
Other commercial real estate
Square Feet
3,648 SF
Lot Size
17,860 SF
Building Details
Year Built
1800
We can help!
Listing Contact
Cary Simons
Learn more
Property Insight Report
Location Intelligence
Current Use by Public Records
Commercial real estate
Suggested Use
Law FirmRestaurantSpa & MassageDental OfficeFood MarketGrocery StoreGym & FitnessBar & PubBuilding SupplyDepartment Store
Zoning and permitted uses should be independently verified with local authorities.
Location Insight
Map
Local Demand
City
Ottsville
County
BUCKS
State
Pennsylvania
Longitude
-75.15999
Latitude
40.47212
Nearby Comparable
$875,000
3,700 SF
Ottsville Inn: Historic Bucks County
Historic inn with restaurant, bar, and income-producing residential rentals.
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245 Durham Rd Ottsville, PA 18942
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Realmo Value Estimations
Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods.
Disclaimer
These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.
AI approach
Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.
Realmo CapRate Calculation
Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.
How We Calculate Cap Rate
Cap Rate Formula: Cap Rate (%) = (Net Operating Income / Property Value) × 100
Net Operating Income (NOI) Formula: NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)
Components
Net Operating Income (NOI) represents the annual income a property generates after operating expenses:
Area: Building square footage from property records
Lease Rate: Annual $/sqft based on market data for the property type and geographic location
Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
Operating Expense Ratio: Operating costs as a percentage of income, varies by property type
Property Value is derived from:
Recent sale price (if available)
Statistical models using comparable sales
AI-powered valuation estimates
Example Calculation
For a 100,000 sqft Office Building:
Lease Rate: $25.00/sqft/year (market data for Office in this area)
Vacancy Rate: 8% (market data for Office in this area)
Operating Expense Ratio: 35% (typical for Office properties)
Property Value: $15,000,000
Step 1: Calculate NOI
NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35) NOI = 100,000 × $25.00 × 0.92 × 0.65 NOI = $1,495,000/year
Step 2: Calculate Cap Rate
Cap Rate = ($1,495,000 / $15,000,000) × 100 Cap Rate = 9.97%
Property Type Considerations
Net Operating Income calculations vary by property type due to different operating expense ratios:
Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
Retail: Moderate expenses (25-35%) for common area maintenance
Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
Multifamily: Moderate expenses (35-45%) including property management
Self-Storage: Lower expenses (25-35%) due to minimal maintenance
Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.
Disclaimer
These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.
Cap Rate calculations depend on market data that may change over time
Actual operating expenses, lease rates, and vacancy rates may differ from market averages
Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
Property value estimates are approximations and not official appraisals
Cap rates vary widely by market, property condition, and investment risk profile
Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.
Cap approach
Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.
Comparable approach
Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.
Relative
Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.
Geo
Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels
across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.
Stat Estimate
This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.
Ranges - area data calculated by industry standard IQR Outlier Removal Method
Range-from: 75% of all similar sales ($/sqft) are above this value
Range-to: 75% of all similar sales ($/sqft) are below this value
AI Estimate
This method estimates value based on AI market estimation of comparable properties around by location and property type.
Ranges - area data calculated by industry standard IQR Outlier Removal Method
Range-from: 75% of all estimations ($/sqft) are above this value
Range-to: 75% of all estimations ($/sqft) are below this value
Alternative use
Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.
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245 Durham Rd Ottsville, PA 18942
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