Mixed-Use Two-Unit
For Sale
$625,000
Pending
107 W State St, Kennett Square, PA 19348
Two-unit property with ground-floor retail/office and leased two-bedroom apartment above.
Property Size2,793 SF
Days on Market48
Property Features for 107 W State St
General Information
Standard status
Pending
Size
2,793 SF
Additional Details
Multifamily Units
1
Building Details
Year Built
1900
Stories
2
Listing Agency:
RE/MAX Ace Realty
Listed By:
Renzo Naimo · License #RM424734
(610) 401-7575
Source:
Kandorre
Added: Jul 20
Changed: Sep 4
Last Checked: Sep 4 at 10:20AM
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 RE/MAX Ace Realty
Investment Insights
Based on property information with market context.
This two-unit mixed-use property offers a versatile first-floor space that can serve as retail or a professional office (buyers should confirm acceptable uses with the Borough of Kennett Square). The commercial area features tall ceilings, hardwood flooring, and an updated bathroom with a storage closet located to the back.
Located at 107 W State St in downtown Kennett Square, the building sits on the borough’s main thoroughfare.
The second floor is a residential apartment with two bedrooms, a bonus room, and one bathroom. It is currently leased, and the existing tenants have indicated they would like to remain.
Located at 107 W State St in downtown Kennett Square, the building sits on the borough’s main thoroughfare.
The second floor is a residential apartment with two bedrooms, a bonus room, and one bathroom. It is currently leased, and the existing tenants have indicated they would like to remain.
Key Highlights
- Two‑unit mixed‑use property in downtown Kennett Square with ground‑floor retail/professional office and a second‑floor apartment
- Second‑floor apartment features 2 bedrooms + bonus room and 1 bath, currently leased with tenants who want to stay
- Ground‑floor commercial space includes tall ceilings and hardwood flooring
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
$43,911
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%
$878,220
$878.2K
Cap Rate 7%
$627,300
$627.3K
Cap Rate 9%
$487,900
$487.9K
Market Conditions
NOI Build-Up for 2,793 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
$72.7K $26.04/SF
− Vacancy
−$14.2K −$5.08/SF
EGI
$58.5K $20.96/SF
− OpEx
−$14.6K −$5.24/SF
NOI
$43.9K $15.72/SF
Area
Chester County, PA
Vacancy
19.50%
Lease Rate
$26.04 /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%
$878,220
Cap Rate 7%
$627,300
Cap Rate 9%
$487,900
Alternative Uses
Best Use
Office B
$627.3K
$548.9K – $731.9K
NOI $43,911 @ 7.0% cap · market cap 7.03%
Second Best
Mixed Use
$611.5K
$535.1K – $713.4K
NOI $42,805 @ 7.0% cap · market cap 6.85%
Theoretical Best
Office A
$846.8K
$741.0K – $988.0K
NOI $59,277 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,066
Businesses Nearby
Explore this area
Business Placement
Demographics for 19348, PA
22,606
Population
9,222
Households
2.5
Avg Household Size
43
Median Age
57%
College-Educated
91%
High-School Grad
36.8 sq mi
ZIP Area
614
Density / Sq Mi
$118,367
Median Household Income
$55,391
Median Earnings
$1,588
Median Rent
$518,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-unit property with ground-floor retail/office and leased two-bedroom apartment above.
Where is this mixed-use property located?
The property is located at 107 W State St Kennett Square, PA.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Two‑unit mixed‑use property in downtown Kennett Square with ground‑floor retail/professional office and a second‑floor apartment; Second‑floor apartment features 2 bedrooms + bonus room and 1 bath, currently leased with tenants who want to stay; Ground‑floor commercial space includes tall ceilings and hardwood flooring
