Mixed-Use Building in
For Sale
Contact for pricing
Pending
123 East Lancaster Avenue, Paoli, PA 19301
Six-unit mixed-use building near SEPTA/Amtrak station.
Property Size6,048 SF
Days on Market99
Property Features for 123 East Lancaster Avenue
General Information
Standard status
Pending
Size
6,048 SF
Property subtype
Retail, Multifamily
Zoning
TCD
Building Details
Year Built
1900
Year Renovated
2021
Buildings
1
Tenancy
Multi
Listing Agency:
McCann Commercial Real Estate
(267) 780-3419
Listed By:
Jon O'Shea · License #AB069634
Source:
Crexi
Added: May 26
Changed: Aug 8
Last Checked: Jul 24 at 6:49PM
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 McCann Commercial Real Estate
Investment Insights
Based on property information with market context.
The property at 123–125 E. Lancaster Avenue is a six-unit mixed-use building situated in the heart of Paoli's Lancaster Avenue corridor, a short distance from the SEPTA/Amtrak station on the Main Line. The three-story building, with an additional lower level, features a mix of commercial and residential spaces, including two commercial spaces and four residential apartments. The anchor commercial tenant, iBeach Club, is under lease through July 2031, providing long-term income. The lower-level commercial tenant has been in place since 2017. All four residential apartments are leased with staggered expirations through early 2027. The property benefits from a new roof installed in 2021. Zoned Town Center District (TCD), the property is located on the northwest corner, offering strong visibility and proximity to Paoli Hospital, SEPTA/Amtrak, and the surrounding retail corridor. The property size is 6,048 square feet.
Key Highlights
- Prime location in the heart of Paoli's Lancaster Avenue corridor, near SEPTA/Amtrak station.
- Long‑term income certainty with anchor tenant (iBeach Club) lease through July 2031.
- Mixed‑use building with two commercial spaces and four residential apartments.
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
$68,356
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
7.64%
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%
$1,367,120
$1.4M
Cap Rate 7%
$976,514
$976.5K
Cap Rate 9%
$759,511
$759.5K
Market Conditions
NOI Build-Up for 6,048 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
$108.9K $18.00/SF
− Vacancy
−$11.2K −$1.85/SF
EGI
$97.7K $16.15/SF
− OpEx
−$29.3K −$4.84/SF
NOI
$68.4K $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%
$1,367,120
Cap Rate 7%
$976,514
Cap Rate 9%
$759,511
Alternative Uses
Best Use
Mixed Use
$1.32M
$1.16M – $1.54M
NOI $92,691 @ 7.0% cap · market cap 10.36%
Second Best
Retail
$976.5K
$854.5K – $1.14M
NOI $68,356 @ 7.0% cap · market cap 7.64%
Theoretical Best
Office A
$1.83M
$1.60M – $2.14M
NOI $128,358 @ 7.0% cap · market cap 14.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,209
Businesses Nearby
167k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 44%
Dining 26%
Groceries 24%
Apparel 5%
ACME Markets
Groceries
31,075 visits/mo
0.4 miles
Wawa
Shops & Services
25,392 visits/mo
0.1 miles
Starbucks
Dining
15,294 visits/mo
0.2 miles
Dunkin' Donuts
Dining
12,620 visits/mo
0.2 miles
Wendy's
Dining
10,842 visits/mo
0.5 miles
Demographics for 19301, PA
7,542
Population
3,283
Households
2.3
Avg Household Size
44
Median Age
75%
College-Educated
97%
High-School Grad
3.6 sq mi
ZIP Area
2,095
Density / Sq Mi
$157,500
Median Household Income
$80,767
Median Earnings
$1,802
Median Rent
$537,300
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Six-unit mixed-use building near SEPTA/Amtrak station.
Where is this mixed-use property located?
The property is located at 123 East Lancaster Avenue Paoli, PA.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Prime location in the heart of Paoli's Lancaster Avenue corridor, near SEPTA/Amtrak station.; Long‑term income certainty with anchor tenant (iBeach Club) lease through July 2031.; Mixed‑use building with two commercial spaces and four residential apartments.
