Historic Duplex with Period
For Sale
$395,000
226 South 5th Street, Reading, PA 19602
R-3-zoned property configured for two-unit or single-family use.
Property Size4,210 SF
Price / SF$93.82
Days on Market630
Property Features for 226 South 5th Street
General Information
Standard status
Active
Size
4,210 SF
Total Parking Spaces
2
Property subtype
Multi-Family / Fee Simple
Zoning
R-3
Units
Unit Mix
1 x 2 bedrooms, 1 x 4 bedrooms
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$3,989
Amenities
Dryer, Microwave, Oven/Range - Electric, Washer
Replacement
2nd Kitchen, Attic, Breakfast Area, Built-Ins, Carpet, Ceiling Fan(s), Kitchen - Eat-In, Wood Floors
No Pool
Above Grade, Below Grade
Sidewalks, Street Lights
Balcony
Building Details
Year Built
1875
Buildings
1
Listing Agency:
Century 21 Gold
(610) 507-3520
Listed By:
Anthony Borelli · License #RS227951L
(610) 507-3520
Source:
Compass
Added: Dec 9, 2024
Changed: Aug 29
Last Checked: Aug 31 at 1:11AM
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 Century 21 Gold
Investment Insights
Based on property information with market context.
Built in 1875, this Reading residence offers a two-unit layout within the Callowhill Historic District. The property can also function as a single-family home, providing flexibility for an owner-occupant or an income-producing configuration. One unit includes 2 bedrooms, while the larger unit offers 4 bedrooms.
Interior details include original hardwood floors, natural woodwork, pocket doors, and a grand staircase. The 12-room layout also features a media room, second kitchen, breakfast area, built-ins, attic space, and an expansive backyard. Exterior features include a balcony, sidewalks, and street lights. The property is zoned R-3 and is located at 226 South 5th Street in Reading, Pennsylvania.
Interior details include original hardwood floors, natural woodwork, pocket doors, and a grand staircase. The 12-room layout also features a media room, second kitchen, breakfast area, built-ins, attic space, and an expansive backyard. Exterior features include a balcony, sidewalks, and street lights. The property is zoned R-3 and is located at 226 South 5th Street in Reading, Pennsylvania.
Key Highlights
- Two‑unit property with a 2‑bedroom unit and a 4‑bedroom unit
- R‑3 zoning allows for two‑unit or single‑family use
- Built in 1875 within the Callowhill Historic District
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
$36,277
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
9.18%
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%
$725,540
$725.5K
Cap Rate 7%
$518,243
$518.2K
Cap Rate 9%
$403,078
$403.1K
Market Conditions
NOI Build-Up for 4,210 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
$68.7K $16.32/SF
− Vacancy
−$2.7K −$0.65/SF
EGI
$66.0K $15.67/SF
− OpEx
−$29.7K −$7.05/SF
NOI
$36.3K $8.62/SF
Area
Berks County, PA
Vacancy
4.00%
Lease Rate
$16.32 /SF/Yr
Expense Ratio
45.00%
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%
$725,540
Cap Rate 7%
$518,243
Cap Rate 9%
$403,078
Alternative Uses
Best Use
Multifamily LT 5
$592.9K
$518.8K – $691.8K
NOI $41,505 @ 7.0% cap · market cap 10.51%
Second Best
Apartment 5plus
$518.2K
$453.5K – $604.6K
NOI $36,277 @ 7.0% cap · market cap 9.18%
Theoretical Best
Office A
$691.1K
$604.7K – $806.3K
NOI $48,378 @ 7.0% cap · market cap 12.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
529
Businesses Nearby
Explore this area
Business Placement
Demographics for 19602, PA
19,782
Population
7,907
Households
2.5
Avg Household Size
32
Median Age
11%
College-Educated
71%
High-School Grad
2.0 sq mi
ZIP Area
9,891
Density / Sq Mi
$38,179
Median Household Income
$30,848
Median Earnings
$978
Median Rent
$73,000
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Duplex - R-3-zoned property configured for two-unit or single-family use.
Where is this duplex located?
The property is located at 226 South 5th Street Reading, PA.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Two‑unit property with a 2‑bedroom unit and a 4‑bedroom unit; R‑3 zoning allows for two‑unit or single‑family use; Built in 1875 within the Callowhill Historic District
