Duplex Loft Live-Work
For Sale
$799,000
1606 CHESTNUT STREET Unit 3, Philadelphia, PA 19103
Two-level layout combines a renovated residence with a flexible office, game room, or playroom on the lower floor.
Property Size2,478 SF
Days on Market695
Property Features for 1606 CHESTNUT STREET Unit 3
General Information
Standard status
Active
Size
2,478 SF
Property subtype
Unit/Flat/Apartment
Taxes and HOA fees
Annual Taxes
$15,502
Building Details
Building Size
2,478 SF
Year Built
1900
Listing Agency:
Allan Domb Real Estate
Listed By:
Allan Domb · License #RB043135A
(215) 545-1500
Source:
Patmckennarealtors
Added: Oct 8, 2024
Changed: Aug 31
Last Checked: Sep 2 at 12:32AM
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 Allan Domb Real Estate
Investment Insights
Based on property information with market context.
This live-work property occupies the fourth and fifth floors of a boutique elevator building and provides over 2,000 square feet of space. The residence includes three bedrooms, 2.5 bathrooms, a great room, open kitchen, primary suite, walk-in closet, and multiple storage areas. The kitchen is equipped with concrete countertops, wood cabinetry, breakfast bar, stainless-steel appliances, wine fridge, gas cooktop, wall oven, and microwave. The fifth-floor living areas feature high 10' ceilings, renovated floors, oversized windows, and abundant natural light.
The lower level can function as an office, game room, playroom, or additional living area and includes a wet bar, powder room, and broad city views. Additional features include a side-by-side washer/dryer, basement storage, video intercom security, central air, recessed lighting, and an elevator. The property is located at 1606 Chestnut Street in Philadelphia’s Center City, near shopping, dining, nightlife, office corridors, Avenue of the Arts, and Rittenhouse Square.
The lower level can function as an office, game room, playroom, or additional living area and includes a wet bar, powder room, and broad city views. Additional features include a side-by-side washer/dryer, basement storage, video intercom security, central air, recessed lighting, and an elevator. The property is located at 1606 Chestnut Street in Philadelphia’s Center City, near shopping, dining, nightlife, office corridors, Avenue of the Arts, and Rittenhouse Square.
Key Highlights
- Over 2,000 square feet arranged across the fourth and fifth floors
- Three‑bedroom, 2.5‑bathroom duplex loft residence
- 10' ceilings, renovated floors, oversized windows, and abundant natural light
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
$38,978
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
4.88%
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%
$779,560
$779.6K
Cap Rate 7%
$556,829
$556.8K
Cap Rate 9%
$433,089
$433.1K
Market Conditions
NOI Build-Up for 2,478 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
$75.2K $30.36/SF
− Vacancy
−$4.4K −$1.76/SF
EGI
$70.9K $28.60/SF
− OpEx
−$31.9K −$12.87/SF
NOI
$39.0K $15.73/SF
Area
Philadelphia, PA
Vacancy
5.80%
Lease Rate
$30.36 /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%
$779,560
Cap Rate 7%
$556,829
Cap Rate 9%
$433,089
Alternative Uses
Best Use
Apartment 5plus
$556.8K
$487.2K – $649.6K
NOI $38,978 @ 7.0% cap · market cap 4.88%
Second Best
Office B
$465.8K
$407.6K – $543.5K
NOI $32,609 @ 7.0% cap · market cap 4.08%
Theoretical Best
Multifamily LT 5
$604.1K
$528.6K – $704.8K
NOI $42,287 @ 7.0% cap · market cap 5.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
26,467
Businesses Nearby
Explore this area
Business Placement
Demographics for 19103, PA
28,717
Population
20,064
Households
1.4
Avg Household Size
36
Median Age
81%
College-Educated
98%
High-School Grad
0.6 sq mi
ZIP Area
47,862
Density / Sq Mi
$97,940
Median Household Income
$76,680
Median Earnings
$1,955
Median Rent
$551,700
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?
Live-work space - Two-level layout combines a renovated residence with a flexible office, game room, or playroom on the lower floor.
Where is this live-work space located?
The property is located at 1606 CHESTNUT STREET Unit 3 Philadelphia, PA.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: Over 2,000 square feet arranged across the fourth and fifth floors; Three‑bedroom, 2.5‑bathroom duplex loft residence; 10' ceilings, renovated floors, oversized windows, and abundant natural light
