Mixed-Use Bar and Restaurant
For Sale
$2,930,000
1123 Walnut St, Philadelphia, PA 19107
Bar and restaurant operations on the first two floors with a full bar on each level and rear kitchen.
Property Size6,776 SF
Days on Market22
Property Features for 1123 Walnut St
General Information
Standard status
Active
Size
6,776 SF
Property subtype
Mixed-Use Development & Restaurant
Building Details
Building Size
6,776 SF
Year Built
1900
Listing Agency:
Mallin Panchelli Nadel Realty Inc
(267) 238-1728
Listed By:
Veronica Blum · License #RS290724
Source:
Mpnrealty
Added: Jul 23
Changed: Aug 10
Last Checked: Aug 13 at 4:12AM
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 Mallin Panchelli Nadel Realty Inc
Investment Insights
Based on property information with market context.
1123 Walnut Street is a mixed-use property currently operating primarily as a bar/restaurant on the first and second floors. The building includes a full bar on each level, with a kitchen located in the rear of the first floor. Upstairs also features a mix of raw and office space. Included in the sale are all furniture, fixtures, and equipment of the restaurant, along with the in-place “R” liquor license.
The property offers 22 feet of frontage on Walnut Street and is described as having outdoor seating. It also runs through to Moravian Street, providing a direct route for delivery and trash pick-up. The building is located on the border of Washington Square West and Midtown Village and is surrounded by Jefferson Hospital, with daytime office workers and a growing residential population contributing to heavy street activity.
Zoned CMX-5, the property allows multiple uses with residential above, supporting redevelopment and flexible use scenarios consistent with the existing mixed-use configuration.
The property offers 22 feet of frontage on Walnut Street and is described as having outdoor seating. It also runs through to Moravian Street, providing a direct route for delivery and trash pick-up. The building is located on the border of Washington Square West and Midtown Village and is surrounded by Jefferson Hospital, with daytime office workers and a growing residential population contributing to heavy street activity.
Zoned CMX-5, the property allows multiple uses with residential above, supporting redevelopment and flexible use scenarios consistent with the existing mixed-use configuration.
Key Highlights
- Mixed‑use building built in 1900 with bar/restaurant operations on the first two floors
- 22 feet of frontage on Walnut Street with outdoor seating
- Full bar on both the first and second floors, plus a kitchen in the rear of the first floor
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
$98,184
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
3.35%
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%
$1,963,680
$2.0M
Cap Rate 7%
$1,402,629
$1.4M
Cap Rate 9%
$1,090,933
$1.1M
Market Conditions
NOI Build-Up for 6,776 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
$142.3K $21.00/SF
− Vacancy
−$11.4K −$1.68/SF
EGI
$130.9K $19.32/SF
− OpEx
−$32.7K −$4.83/SF
NOI
$98.2K $14.49/SF
Area
Philadelphia, PA
Vacancy
8.00%
Lease Rate
$21.00 /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%
$1,963,680
Cap Rate 7%
$1,402,629
Cap Rate 9%
$1,090,933
Alternative Uses
Best Use
Specialty Retail
$1.40M
$1.23M – $1.64M
NOI $98,184 @ 7.0% cap · market cap 3.35%
Second Best
Office B
$1.27M
$1.11M – $1.49M
NOI $89,169 @ 7.0% cap · market cap 3.04%
Theoretical Best
Multifamily LT 5
$1.65M
$1.45M – $1.93M
NOI $115,632 @ 7.0% cap · market cap 3.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
25,174
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19107, PA
17,600
Population
10,239
Households
1.7
Avg Household Size
32
Median Age
72%
College-Educated
92%
High-School Grad
0.5 sq mi
ZIP Area
35,200
Density / Sq Mi
$70,382
Median Household Income
$57,694
Median Earnings
$1,691
Median Rent
$452,500
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bar & Pub - Bar and restaurant operations on the first two floors with a full bar on each level and rear kitchen.
Where is this bar & pub located?
The property is located at 1123 Walnut St Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,930,000.
What are key features of this property?
This property features: Mixed‑use building built in 1900 with bar/restaurant operations on the first two floors; 22 feet of frontage on Walnut Street with outdoor seating; Full bar on both the first and second floors, plus a kitchen in the rear of the first floor
