Mixed-Use Grocery and Apartment
For Sale
Contact for pricing
Pending
128 South Main Street, Spring Grove, PA 17362
First-floor grocery/takeout with income apartments upstairs, providing space for an operator and rental income.
Property Size10,634 SF
Days on Market53
Property Features for 128 South Main Street
General Information
Standard status
Pending
Size
10,634 SF
Total Parking Spaces
10
Property subtype
Retail, Multifamily, Mixed Use
Zoning
Village (V)
Financials
Cap Rate
8.5%
Business Included
Yes
Additional Details
Multifamily Units
10
Building Details
Year Built
1920
Buildings
1
Stories
3
Units
11
Tenancy
Multi
Listing Agency:
ROCK Commercial Real Estate
(717) 854-5357
Listed By:
Ben Bode · License #PA RS301541
Source:
Crexi
Added: Jul 1
Changed: Aug 14
Last Checked: Aug 14 at 7:09AM
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 ROCK Commercial Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property includes a grocery store/takeout restaurant on the first floor and 10 apartments on the 2nd and 3rd floors. The seller currently operates the business and plans to close the store for a new operator, who may choose to rent the space or operate their own concept. The residential component has monthly rental rates between $800 and $900, with nine apartments currently rented and one studio apartment available.
The property is offered for sale at 128 South Main Street in Spring Grove, Pennsylvania. The building configuration supports a live-and-work style setup, with the food sales operation and the apartments contained within the same structure.
For tenants and buyers, the asset offers two income streams in one building: daily-use retail/takeout space below and apartment rentals above. The seller reports a current NOI of $41,600, with potential NOI of $63,800. The provided underwriting indicates an 8.5% cap rate, based on the figures above.
The property is offered for sale at 128 South Main Street in Spring Grove, Pennsylvania. The building configuration supports a live-and-work style setup, with the food sales operation and the apartments contained within the same structure.
For tenants and buyers, the asset offers two income streams in one building: daily-use retail/takeout space below and apartment rentals above. The seller reports a current NOI of $41,600, with potential NOI of $63,800. The provided underwriting indicates an 8.5% cap rate, based on the figures above.
Key Highlights
- 1920‑built mixed‑use building with grocery/takeout space on the first floor
- 10 apartments on the 2nd and 3rd floors; rental rates between $800–$900/month
- 9 apartments currently rented plus 1 studio available for rent
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
$66,163
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
8.83%
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%
$1,323,260
$1.3M
Cap Rate 7%
$945,186
$945.2K
Cap Rate 9%
$735,144
$735.1K
Market Conditions
NOI Build-Up for 10,634 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
$93.2K $8.76/SF
− Vacancy
−$4.9K −$0.46/SF
EGI
$88.2K $8.30/SF
− OpEx
−$22.1K −$2.07/SF
NOI
$66.2K $6.22/SF
Area
York County, PA
Vacancy
5.30%
Lease Rate
$8.76 /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%
$1,323,260
Cap Rate 7%
$945,186
Cap Rate 9%
$735,144
Alternative Uses
Best Use
Retail
$1.81M
$1.59M – $2.11M
NOI $126,887 @ 7.0% cap · market cap 16.94%
Second Best
Apartment 5plus
$1.40M
$1.23M – $1.63M
NOI $98,013 @ 7.0% cap · market cap 13.09%
Theoretical Best
Office A
$3.08M
$2.69M – $3.59M
NOI $215,524 @ 7.0% cap · market cap 28.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
145
Businesses Nearby
Explore this area
Business Placement
Demographics for 17362, PA
13,935
Population
5,595
Households
2.5
Avg Household Size
44
Median Age
26%
College-Educated
92%
High-School Grad
49.1 sq mi
ZIP Area
284
Density / Sq Mi
$96,438
Median Household Income
$49,652
Median Earnings
$1,183
Median Rent
$258,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - First-floor grocery/takeout with income apartments upstairs, providing space for an operator and rental income.
Where is this apartment building located?
The property is located at 128 South Main Street Spring Grove, PA.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 1920‑built mixed‑use building with grocery/takeout space on the first floor; 10 apartments on the 2nd and 3rd floors; rental rates between $800–$900/month; 9 apartments currently rented plus 1 studio available for rent
