Restaurant with Private Party
For Sale
$429,000
11 E Pennsylvania Ave, Pen Argyl, PA 18072
Sale includes the operating business, real estate, commercial kitchen equipment, and renovated second-floor living quarters.
Property Size2,523 SF
Price / SF$170.04
Days on Market8
Property Features for 11 E Pennsylvania Ave
General Information
Standard status
Active
Size
2,523 SF
Property subtype
Residential Income
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,414
Building Details
Buildings
1
Stories
2
Listing Agency:
Howard Hanna TheFrederickGroup
(484) 201-9878
Listed By:
Marina Gabunia · License #PA347078
(484) 201-9878
Source:
Exprealty
Added: Aug 10
Changed: Aug 17
Last Checked: Aug 17 at 3:54AM
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 Howard Hanna TheFrederickGroup
Investment Insights
Based on property information with market context.
The offering combines an established restaurant business with its real estate and a fully outfitted commercial kitchen. Improvements include a 16-foot exhaust hood, pizza oven, dough mixer, walk-in cooler and freezer, three-compartment sink, commercial cooking equipment, four restrooms, updated flooring, renovated dining areas, and new central air conditioning. The main dining room accommodates approximately 60 guests, while a separate private party room seats 30 and can support events, catering, additional dining, office use, or retail use.
The property has operated as a neighborhood restaurant for 45 years and currently houses Tandoori Grill, serving Indian, European, and Italian cuisine. Located in Pen Argyl on Pennsylvania Avenue, it is near established businesses including a bank and the United States Postal Service. The existing infrastructure supports continued restaurant operations or a range of other culinary concepts.
The property has operated as a neighborhood restaurant for 45 years and currently houses Tandoori Grill, serving Indian, European, and Italian cuisine. Located in Pen Argyl on Pennsylvania Avenue, it is near established businesses including a bank and the United States Postal Service. The existing infrastructure supports continued restaurant operations or a range of other culinary concepts.
Key Highlights
- Business and real estate included in the sale
- 16‑foot exhaust hood, pizza oven, dough mixer, and walk‑in cooler and freezer
- Main dining room seats approximately 60 guests
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
$26,170
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
6.10%
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%
$523,400
$523.4K
Cap Rate 7%
$373,857
$373.9K
Cap Rate 9%
$290,778
$290.8K
Market Conditions
NOI Build-Up for 2,523 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
$37.8K $15.00/SF
− Vacancy
−$3.0K −$1.17/SF
EGI
$34.9K $13.83/SF
− OpEx
−$8.7K −$3.46/SF
NOI
$26.2K $10.37/SF
Area
Northampton County, PA
Vacancy
7.80%
Lease Rate
$15.00 /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%
$523,400
Cap Rate 7%
$373,857
Cap Rate 9%
$290,778
Alternative Uses
Best Use
Specialty Retail
$373.9K
$327.1K – $436.2K
NOI $26,170 @ 7.0% cap · market cap 6.10%
Second Best
Industrial
$268.0K
$234.5K – $312.7K
NOI $18,759 @ 7.0% cap · market cap 4.37%
Theoretical Best
Office A
$478.5K
$418.7K – $558.3K
NOI $33,497 @ 7.0% cap · market cap 7.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
255
Businesses Nearby
8k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 91%
Beauty & Spa 9%
Turkey Hill Minit Market
Shops & Services
6,863 visits/mo
0.3 miles
Holiday Hair
Beauty & Spa
673 visits/mo
0.2 miles
Demographics for 18072, PA
6,734
Population
2,779
Households
2.4
Avg Household Size
43
Median Age
23%
College-Educated
87%
High-School Grad
14.9 sq mi
ZIP Area
452
Density / Sq Mi
$79,067
Median Household Income
$41,056
Median Earnings
$1,525
Median Rent
$244,100
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 - Sale includes the operating business, real estate, commercial kitchen equipment, and renovated second-floor living quarters.
Where is this conventional restaurant located?
The property is located at 11 E Pennsylvania Ave Pen Argyl, PA.
What is the asking price?
The asking price for this property is $429,000.
What are key features of this property?
This property features: Business and real estate included in the sale; 16‑foot exhaust hood, pizza oven, dough mixer, and walk‑in cooler and freezer; Main dining room seats approximately 60 guests
