Restaurant with Outdoor
For Sale
Contact for pricing
1123 Walnut St, Philadelphia, PA 19107
Two-level layout includes bar service, a rear kitchen, and upper-floor office and raw space.
Property Size6,776 SF
Price / SF$432.41
Days on Market14
Property Features for 1123 Walnut St
General Information
Standard status
Active
Size
6,776 SF
Property subtype
RETAIL
Zoning
CMX-5
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Frontage
22 ft
Listing Agency:
MPN Realty, Inc.
(267) 238-1728
Listed By:
Joe Scarpone · License #RS290724
(215) 520-5091
Source:
Moodyscre
Added: Jul 31
Changed: Aug 2
Last Checked: Aug 2 at 6:05AM
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 MPN Realty, Inc.
Investment Insights
Based on property information with market context.
This conventional restaurant occupies a two-level commercial property at 1123 Walnut St in Philadelphia. The first floor includes a rear kitchen, while bar service extends across both the first and second floors. Upper-level space combines raw and office areas, creating a varied interior configuration. Furniture, fixtures, and equipment associated with the restaurant are included, along with an R liquor license.
The property connects Walnut Street with Moravian Street, supporting delivery and trash pickup access. It is zoned CMX-5, a designation that allows multiple uses with residential space above. The surrounding area includes Jefferson Hospital and a concentration of daytime office workers, along with a growing residential population. Walnut Street is described as heavily trafficked throughout the day.
The property connects Walnut Street with Moravian Street, supporting delivery and trash pickup access. It is zoned CMX-5, a designation that allows multiple uses with residential space above. The surrounding area includes Jefferson Hospital and a concentration of daytime office workers, along with a growing residential population. Walnut Street is described as heavily trafficked throughout the day.
Key Highlights
- Restaurant property at 1123 Walnut St in Philadelphia
- Outdoor seating area included
- Full bar service on the first and second floors
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
$98,184
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
3.35%
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%
$1,963,680
$2.0M
Cap Rate 7%
$1,402,629
$1.4M
Cap Rate 9%
$1,090,933
$1.1M
Market Conditions
NOI Build-Up for 6,776 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
$142.3K $21.00/SF
− Vacancy
−$11.4K −$1.68/SF
EGI
$130.9K $19.32/SF
− OpEx
−$32.7K −$4.83/SF
NOI
$98.2K $14.49/SF
Area
Philadelphia, PA
Vacancy
8.00%
Lease Rate
$21.00 /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%
$1,963,680
Cap Rate 7%
$1,402,629
Cap Rate 9%
$1,090,933
Alternative Uses
Best Use
Specialty Retail
$1.40M
$1.23M – $1.64M
NOI $98,184 @ 7.0% cap · market cap 3.35%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.65M
$1.45M – $1.93M
NOI $115,632 @ 7.0% cap · market cap 3.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
25,174
Businesses Nearby
231k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 33%
Groceries 25%
Hotels & Casinos 20%
Apparel 15%
Whole Foods Market
Groceries
37,607 visits/mo
0.4 miles
The Ritz-Carlton, Philadelphia
Hotels & Casinos
30,824 visits/mo
0.3 miles
ACME Markets
Groceries
20,427 visits/mo
0.4 miles
UNIQLO
Apparel
20,066 visits/mo
0.5 miles
Starbucks
Dining
16,511 visits/mo
0.5 miles
Demographics for 19107, PA
17,600
Population
10,239
Households
1.7
Avg Household Size
32
Median Age
72%
College-Educated
92%
High-School Grad
0.5 sq mi
ZIP Area
35,200
Density / Sq Mi
$70,382
Median Household Income
$57,694
Median Earnings
$1,691
Median Rent
$452,500
Median Home Value
Market
Vacancy Rate% for Retail in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Two-level layout includes bar service, a rear kitchen, and upper-floor office and raw space.
Where is this conventional restaurant located?
The property is located at 1123 Walnut St Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,930,000.
What are key features of this property?
This property features: Restaurant property at 1123 Walnut St in Philadelphia; Outdoor seating area included; Full bar service on the first and second floors
