Lancaster Avenue Commercial Investment
For Sale
Contact for pricing
Pending
1616 Lancaster Ave, Paoli, PA 19301
Fully occupied commercial property in Paoli, Pennsylvania with long-term tenants.
Property Size23,454 SF
Days on Market673
Property Features for 1616 Lancaster Ave
General Information
Standard status
Pending
Size
23,454 SF
Class
A
Property subtype
Retail
Occupancy
100%
Lease Type
Gross
Investment Type
Stabilized
Building Details
Year Built
1966
Year Renovated
2020
Buildings
1
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
MSC Retail
(215) 568-2600
Listed By:
Jesse Dubrow · License #RS362355
Source:
Crexi
Added: Oct 9, 2024
Changed: Aug 8
Last Checked: Aug 8 at 11:53AM
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 MSC Retail
Investment Insights
Based on property information with market context.
The property at 1604-1616 Lancaster Avenue in Paoli, Pennsylvania, presents an opportunity to acquire an income-generating, fully occupied commercial building. Located on Lancaster Avenue in Philadelphia's Main Line, the property benefits from its location in a prestigious and affluent submarket. The property is anchored by established tenants with long-term leases and built-in escalations, offering immediate and stable cash flow. Van Cleve, a bridal retailer, has operated at this location for over 10 years, alongside Something You Beauty, a nail and hair salon. Both tenants have lease terms through 2029, providing secure, long-term rental income. The building's current owner will execute a sale-leaseback at the close of escrow, signing a three-year lease, ensuring full occupancy and steady revenue. The property is situated in a densely populated area of Lower Merion Township, where average household incomes exceed $222,000 within a three-mile radius. The location benefits from high visibility along Lancaster Avenue and proximity to top schools. The property is a well-maintained brick structure. The property size is 23454 square feet.
Key Highlights
- Located in Philadelphia's Main Line, a prestigious and affluent submarket with high visibility on Lancaster Avenue
- Fully occupied commercial property generating immediate and stable cash flow
- Anchored by established tenants, including Van Cleve bridal retailer (10+ years), with leases through 2029
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
$265,082
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
4.14%
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%
$5,301,640
$5.3M
Cap Rate 7%
$3,786,886
$3.8M
Cap Rate 9%
$2,945,356
$2.9M
Market Conditions
NOI Build-Up for 23,454 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
$422.2K $18.00/SF
− Vacancy
−$43.5K −$1.85/SF
EGI
$378.7K $16.15/SF
− OpEx
−$113.6K −$4.84/SF
NOI
$265.1K $11.30/SF
Area
Chester County, PA
Vacancy
10.30%
Lease Rate
$18.00 /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%
$5,301,640
Cap Rate 7%
$3,786,886
Cap Rate 9%
$2,945,356
Alternative Uses
Best Use
Retail
$3.79M
$3.31M – $4.42M
NOI $265,082 @ 7.0% cap · market cap 4.14%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.11M
$6.22M – $8.30M
NOI $497,771 @ 7.0% cap · market cap 7.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
760
Businesses Nearby
61k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 51%
Shops & Services 42%
Dining 7%
ACME Markets
Groceries
31,075 visits/mo
0.5 miles
7-Eleven
Shops & Services
9,169 visits/mo
0.4 miles
Lukoil
Shops & Services
6,501 visits/mo
0.5 miles
Einstein Bros Bagels
Dining
4,201 visits/mo
0.5 miles
Bank of America
Shops & Services
3,654 visits/mo
0.5 miles
Demographics for 19301, PA
7,542
Population
3,283
Households
2.3
Avg Household Size
44
Median Age
75%
College-Educated
97%
High-School Grad
3.6 sq mi
ZIP Area
2,095
Density / Sq Mi
$157,500
Median Household Income
$80,767
Median Earnings
$1,802
Median Rent
$537,300
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Fully occupied commercial property in Paoli, Pennsylvania with long-term tenants.
Where is this retail space located?
The property is located at 1616 Lancaster Ave Paoli, PA.
What is the asking price?
The asking price for this property is $6,400,000.
What are key features of this property?
This property features: Located in Philadelphia's Main Line, a prestigious and affluent submarket with high visibility on Lancaster Avenue; Fully occupied commercial property generating immediate and stable cash flow; Anchored by established tenants, including Van Cleve bridal retailer (10+ years), with leases through 2029
