Warehouse and Motel Redevelopment
For Sale
Contact for pricing
977 E Main St, Palmyra, PA 17078
Hotel/motel investment property with warehouse-flex redevelopment potential and managers quarters zoned commercial and industrial.
Property Size15,728 SF
Price / SF$139.88
Days on Market1211
Property Features for 977 E Main St
General Information
Standard status
Active
Size
15,728 SF
Property subtype
Industrial, Hospitality, Land
Zoning
Heavy Industrial and Highway Commercial
Additional Details
Utilities to Site
Yes
Building Details
Year Built
1972
Stories
33
Units
32
Listing Agency:
Lee & Associates | Eastern Pennsylvania - Suburban Philadelphia
(717) 208-8669
Listed By:
Bradley Swidler · License #PA RS205686L
Source:
Crexi
Added: Apr 19, 2023
Changed: Aug 7
Last Checked: Aug 10 at 10:53AM
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 Lee & Associates | Eastern Pennsylvania - Suburban Philadelphia
Investment Insights
Based on property information with market context.
This hotel/motel investment property includes approximately 15,728 SF and supports warehouse/flex redevelopment. The site also features managers quarters that are zoned for commercial and industrial use, with public utilities available per the property highlights.
Located at 977 E Main St in Palmyra, PA, the site is described as being close to a retail corridor. The seller notes that new construction is possible as part of the redevelopment plan.
The offering is positioned for buyers seeking an income-producing hospitality property today with the option to rework the site into a warehouse-flex configuration where the managers quarters zoning applies.
Located at 977 E Main St in Palmyra, PA, the site is described as being close to a retail corridor. The seller notes that new construction is possible as part of the redevelopment plan.
The offering is positioned for buyers seeking an income-producing hospitality property today with the option to rework the site into a warehouse-flex configuration where the managers quarters zoning applies.
Key Highlights
- 15,728 SF hotel/motel investment property
- Managers quarters included and zoned commercial and industrial
- Warehouse/flex space available with hotel/motel redevelopment potential
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
$111,436
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
5.07%
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%
$2,228,720
$2.2M
Cap Rate 7%
$1,591,943
$1.6M
Cap Rate 9%
$1,238,178
$1.2M
Market Conditions
NOI Build-Up for 15,728 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
$138.9K $8.83/SF
− Vacancy
−$7.8K −$0.49/SF
EGI
$131.1K $8.34/SF
− OpEx
−$19.7K −$1.25/SF
NOI
$111.4K $7.09/SF
Area
Lebanon County, PA
Vacancy
5.60%
Lease Rate
$8.83 /SF/Yr
Expense Ratio
15.00%
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%
$2,228,720
Cap Rate 7%
$1,591,943
Cap Rate 9%
$1,238,178
Alternative Uses
Best Use
Warehouse
$1.59M
$1.39M – $1.86M
NOI $111,436 @ 7.0% cap · market cap 5.07%
Second Best
Flex RnD
$1.57M
$1.38M – $1.83M
NOI $110,018 @ 7.0% cap · market cap 5.00%
Theoretical Best
Office A
$3.69M
$3.23M – $4.31M
NOI $258,417 @ 7.0% cap · market cap 11.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
293
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 17078, PA
23,496
Population
9,602
Households
2.4
Avg Household Size
43
Median Age
35%
College-Educated
94%
High-School Grad
30.1 sq mi
ZIP Area
781
Density / Sq Mi
$84,533
Median Household Income
$47,141
Median Earnings
$1,252
Median Rent
$278,300
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Hotel/motel investment property with warehouse-flex redevelopment potential and managers quarters zoned commercial and industrial.
Where is this flex space located?
The property is located at 977 E Main St Palmyra, PA.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: 15,728 SF hotel/motel investment property; Managers quarters included and zoned commercial and industrial; Warehouse/flex space available with hotel/motel redevelopment potential
