Renovated 3-Unit Apartment
For Sale
$715,000
705 N 40TH STREET, Philadelphia, PA 19104
Recently renovated multifamily property with individual HVAC systems and in-unit laundry.
Property Size2,400 SF
Days on Market698
Property Features for 705 N 40TH STREET
General Information
Standard status
Active
Size
2,400 SF
Property subtype
Triplex
Units
Unit Mix
3 x 2BR/2BA
Multifamily Units
3
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$5,480
Building Details
Building Size
2,400 SF
Year Built
1960
Listing Agency:
Burke Property Group
(215) 416-3467
Listed By:
Desiree R Richardson · License #RS281339
(215) 416-3467
Source:
Patmckennarealtors
Added: Oct 3, 2024
Changed: Aug 28
Last Checked: Aug 30 at 9:39PM
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 Burke Property Group
Investment Insights
Based on property information with market context.
This triplex contains three two-bedroom, two-bathroom apartments, each with its own HVAC system providing high-efficiency heating and central air. The interiors were renovated one year ago and feature tile and hardwood flooring, stainless-steel appliances, and washer and dryer setups in every unit. The property was originally built in 1960.
The building is located near schools, parks, and public transportation in Philadelphia. The University of Pennsylvania, Drexel University, Children's Hospital of Philadelphia, and Penn hospitals are minutes away, providing proximity to major educational, medical, and institutional destinations.
The building is located near schools, parks, and public transportation in Philadelphia. The University of Pennsylvania, Drexel University, Children's Hospital of Philadelphia, and Penn hospitals are minutes away, providing proximity to major educational, medical, and institutional destinations.
Key Highlights
- Three apartments, each with 2 bedrooms and 2 bathrooms
- Renovated one year ago; original construction dates to 1960
- Individual HVAC systems with high‑efficiency heat and central air
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
$40,956
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
5.73%
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%
$819,120
$819.1K
Cap Rate 7%
$585,086
$585.1K
Cap Rate 9%
$455,067
$455.1K
Market Conditions
NOI Build-Up for 2,400 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
$61.9K $25.80/SF
− Vacancy
−$3.4K −$1.42/SF
EGI
$58.5K $24.38/SF
− OpEx
−$17.6K −$7.31/SF
NOI
$41.0K $17.06/SF
Area
Philadelphia, PA
Vacancy
5.51%
Lease Rate
$25.80 /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%
$819,120
Cap Rate 7%
$585,086
Cap Rate 9%
$455,067
Alternative Uses
Best Use
Multifamily LT 5
$585.1K
$512.0K – $682.6K
NOI $40,956 @ 7.0% cap · market cap 5.73%
Second Best
Apartment 5plus
$539.3K
$471.9K – $629.2K
NOI $37,751 @ 7.0% cap · market cap 5.28%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
3,420
Businesses Nearby
Explore this area
Business Placement
Demographics for 19104, PA
56,839
Population
23,888
Households
2.4
Avg Household Size
26
Median Age
47%
College-Educated
90%
High-School Grad
3.1 sq mi
ZIP Area
18,335
Density / Sq Mi
$39,526
Median Household Income
$18,420
Median Earnings
$1,329
Median Rent
$268,200
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?
Triplex - Recently renovated multifamily property with individual HVAC systems and in-unit laundry.
Where is this triplex located?
The property is located at 705 N 40TH STREET Philadelphia, PA.
What is the asking price?
The asking price for this property is $715,000.
What are key features of this property?
This property features: Three apartments, each with 2 bedrooms and 2 bathrooms; Renovated one year ago; original construction dates to 1960; Individual HVAC systems with high‑efficiency heat and central air
