Turnkey Six-Unit Multifamily
For Sale
$899,000
1501 Reed Street, Philadelphia, PA 19146
Six separately metered units with central air in a corner building on Reed Street.
Property Size4,320 SF
Price / SF$208.10
Days on Market239
Property Features for 1501 Reed Street
General Information
Standard status
Active
Size
4,320 SF
Property subtype
Multi-Family / Fee Simple
Zoning
RSA5
Additional Details
Multifamily Units
6
Taxes and HOA fees
Annual Taxes
$8,048
Amenities
No
No Pool
Above Grade, Below Grade
Building Details
Year Built
1915
Tenancy
Multi
Listing Agency:
Compass
Listed By:
Kate Federico · License #RS273035
(215) 840-0049
Source:
Compass
Added: Jan 12
Changed: Aug 8
Last Checked: Jul 23 at 12:19AM
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 Compass
Investment Insights
Based on property information with market context.
This turnkey six-unit multifamily building features six updated, separately metered residences with central air. The unit mix includes three one bed, one bath units; one two bed, one bath unit; and two additional one-bedroom units with a den and one bath. The property is described as having plenty of natural light, high ceilings, and generous closet space.
The building is located at 1501 Reed Street in Philadelphia’s Newbold area, identified within MLS area 19146. The listing notes proximity to local amenities including Giant & Sprouts, nearby sports complexes and universities, and connections to dining options associated with Passyunk Square and Rittenhouse Square.
As a corner property with independently metered units, the building offers a straightforward configuration for multifamily ownership or investment use.
The building is located at 1501 Reed Street in Philadelphia’s Newbold area, identified within MLS area 19146. The listing notes proximity to local amenities including Giant & Sprouts, nearby sports complexes and universities, and connections to dining options associated with Passyunk Square and Rittenhouse Square.
As a corner property with independently metered units, the building offers a straightforward configuration for multifamily ownership or investment use.
Key Highlights
- Turn‑key six‑unit multifamily building on a corner lot in Philadelphia’s Newbold neighborhood
- Six updated, separately metered units, each with central air
- Unit mix: three 1 bed/1 bath units, one 2 bed/1 bath unit, and two 1 bed/den/1 bath units
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
$67,952
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
7.56%
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%
$1,359,040
$1.4M
Cap Rate 7%
$970,743
$970.7K
Cap Rate 9%
$755,022
$755.0K
Market Conditions
NOI Build-Up for 4,320 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
$131.2K $30.36/SF
− Vacancy
−$7.6K −$1.76/SF
EGI
$123.5K $28.60/SF
− OpEx
−$55.6K −$12.87/SF
NOI
$68.0K $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%
$1,359,040
Cap Rate 7%
$970,743
Cap Rate 9%
$755,022
Alternative Uses
Best Use
Apartment 5plus
$970.7K
$849.4K – $1.13M
NOI $67,952 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.05M
$921.5K – $1.23M
NOI $73,720 @ 7.0% cap · market cap 8.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,767
Businesses Nearby
Explore this area
Business Placement
Demographics for 19146, PA
41,920
Population
22,182
Households
1.9
Avg Household Size
34
Median Age
65%
College-Educated
94%
High-School Grad
1.7 sq mi
ZIP Area
24,659
Density / Sq Mi
$99,702
Median Household Income
$68,849
Median Earnings
$1,708
Median Rent
$452,200
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?
Apartment building - Six separately metered units with central air in a corner building on Reed Street.
Where is this apartment building located?
The property is located at 1501 Reed Street Philadelphia, PA.
What is the asking price?
The asking price for this property is $899,000.
What are key features of this property?
This property features: Turn‑key six‑unit multifamily building on a corner lot in Philadelphia’s Newbold neighborhood; Six updated, separately metered units, each with central air; Unit mix: three 1 bed/1 bath units, one 2 bed/1 bath unit, and two 1 bed/den/1 bath units
