Renovated Historic Office
For Sale
$4,495,000
725 North 15th Street, Allentown, PA 18102
Historic office building with 17 units, fully occupied, renovated in 2011 and 2020.
Property Size35,941 SF
Days on Market65
Property Features for 725 North 15th Street
General Information
Standard status
Active
Size
35,941 SF
Class
C
Property subtype
Office
Building Details
Building Size
35,941 SF
Listed By:
Amy Hawley, SIOR · License #PA #AB045309A
(610) 217-1749
Source:
Svn
Added: Jul 3
Changed: Aug 31
Last Checked: Sep 5 at 5:38AM
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 Amy Hawley, SIOR
Investment Insights
Based on property information with market context.
725 North 15th Street is a historic office building featuring 17 units and currently operating at full capacity. The property underwent renovations in 2011 and again in 2020, supporting a well-maintained office asset.
Located in Allentown within the Lehigh Valley area, the building is zoned for Highway Commercial use. The current full occupancy provides immediate tenant coverage for investors seeking a multi-unit office property.
With a 17-unit configuration, this office building is suited for an investor portfolio focused on maintaining current rental performance in a renovated, fully leased format.
Located in Allentown within the Lehigh Valley area, the building is zoned for Highway Commercial use. The current full occupancy provides immediate tenant coverage for investors seeking a multi-unit office property.
With a 17-unit configuration, this office building is suited for an investor portfolio focused on maintaining current rental performance in a renovated, fully leased format.
Key Highlights
- Historic office building totaling 35,941 SF
- 17 units and currently fully occupied
- Renovated in 2011 and again in 2020
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
$195,117
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
4.34%
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%
$3,902,340
$3.9M
Cap Rate 7%
$2,787,386
$2.8M
Cap Rate 9%
$2,167,967
$2.2M
Market Conditions
NOI Build-Up for 35,941 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
$280.3K $7.80/SF
− Vacancy
−$20.2K −$0.56/SF
EGI
$260.2K $7.24/SF
− OpEx
−$65.0K −$1.81/SF
NOI
$195.1K $5.43/SF
Area
Allentown, PA
Vacancy
7.20%
Lease Rate
$7.80 /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%
$3,902,340
Cap Rate 7%
$2,787,386
Cap Rate 9%
$2,167,967
Alternative Uses
Best Use
Office B
$2.79M
$2.44M – $3.25M
NOI $195,117 @ 7.0% cap · market cap 4.34%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$7.06M
$6.18M – $8.24M
NOI $494,261 @ 7.0% cap · market cap 11.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,147
Businesses Nearby
Explore this area
Business Placement
Demographics for 18102, PA
51,567
Population
18,788
Households
2.7
Avg Household Size
32
Median Age
11%
College-Educated
76%
High-School Grad
3.0 sq mi
ZIP Area
17,189
Density / Sq Mi
$40,681
Median Household Income
$29,501
Median Earnings
$1,224
Median Rent
$146,600
Median Home Value
Market
Vacancy Rate% for Office 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?
Office building - Historic office building with 17 units, fully occupied, renovated in 2011 and 2020.
Where is this office building located?
The property is located at 725 North 15th Street Allentown, PA.
What is the asking price?
The asking price for this property is $4,495,000.
What are key features of this property?
This property features: Historic office building totaling 35,941 SF; 17 units and currently fully occupied; Renovated in 2011 and again in 2020
