Restaurant Building with Liquor
For Sale
Contact for pricing
108 W State St, Kennett Square, PA
Three-story commercial building with restaurant, office, and possible apartment.
Property Size7,000 SF
Lot Size0.09 Acres
Price / SF$271.43
Days on Market1032
Property Features for 108 W State St
General Information
Standard status
Active
Size
7,000 SF
Lot size
0.09 Acres
Property subtype
RETAIL
Listing Agency:
LMT Commercial Realty / CORFAC International
(302) 530-1233
Listed By:
Joe Latina
(302) 530-1233
Source:
Moodyscre
Added: Oct 13, 2023
Changed: Aug 8
Last Checked: Aug 8 at 12:34PM
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 LMT Commercial Realty / CORFAC International
Investment Insights
Based on property information with market context.
This is a three-story commercial building with a basement, suitable for a restaurant, office, or possible apartment. The property includes furniture, fixtures, and equipment. The building has a combined area of approximately 8,165 square feet across the three floors. The property is zoned C-2 in Kennett Square Borough. A "R" liquor license is available for separate purchase.
Key Highlights
- Existing restaurant building with furniture, fixtures, and equipment included
- Includes office space and possible apartment
- Liquor license available for separate purchase
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
$79,115
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
4.16%
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%
$1,582,300
$1.6M
Cap Rate 7%
$1,130,214
$1.1M
Cap Rate 9%
$879,056
$879.1K
Market Conditions
NOI Build-Up for 7,000 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
$126.0K $18.00/SF
− Vacancy
−$13.0K −$1.85/SF
EGI
$113.0K $16.15/SF
− OpEx
−$33.9K −$4.84/SF
NOI
$79.1K $11.30/SF
Area
Chester County, PA
Vacancy
10.30%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$1,582,300
Cap Rate 7%
$1,130,214
Cap Rate 9%
$879,056
Alternative Uses
Best Use
Retail
$1.13M
$988.9K – $1.32M
NOI $79,115 @ 7.0% cap · market cap 4.16%
Second Best
Specialty Retail
$987.5K
$864.0K – $1.15M
NOI $69,122 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$2.12M
$1.86M – $2.48M
NOI $148,563 @ 7.0% cap · market cap 7.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,066
Businesses Nearby
17k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 91%
Dining 9%
Wawa
Shops & Services
14,427 visits/mo
0.3 miles
Taqueria Guadalajara
Dining
1,488 visits/mo
0.4 miles
Caliber Collision
Shops & Services
769 visits/mo
0.4 miles
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Mezzaluna KSQ — 216 S Mill Rd Suite 111, Kennett Square, PA 19348
- Alexander Catering Company — 326 W Cedar St #2, Kennett Square, PA 19348
Frequently Asked Questions
What type of property is this?
Restaurant - Three-story commercial building with restaurant, office, and possible apartment.
Where is this restaurant located?
The property is located at 108 W State St Kennett Square, PA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Existing restaurant building with furniture, fixtures, and equipment included; Includes office space and possible apartment; Liquor license available for separate purchase
