Restaurant Building with Open
For Sale
$2,500,000
17 W 2nd St, Bethlehem, PA 18015
Flexible commercial space in Bethlehem’s South Side Arts District with exposed brick, high ceilings, and access to nearby parking garages.
Property Size23,612 SF
Price / SF$105.88
Days on Market35
Property Features for 17 W 2nd St
General Information
Standard status
Active
Size
23,612 SF
Building Details
Year Built
1970
Listing Agency:
Melchor Realty
(908) 475-2050
Listed By:
Susan E. DiLeo · License #287557
Source:
Jennysoldmine
Added: Jul 27
Changed: Aug 29
Last Checked: Aug 29 at 1:39PM
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 Melchor Realty
Investment Insights
Based on property information with market context.
This 23,612-square-foot commercial building, constructed in 1970, was previously used as a restaurant and offers a flexible interior for continued restaurant use or other commercial concepts. Exposed brick, high ceilings, and broad open areas create an industrial-style setting, while the layout can accommodate commercial kitchen infrastructure and varied event or customer areas. The property is zoned for commercial use, with permitted uses subject to buyer verification with the city.
Located at 17 W 2nd St in Bethlehem’s South Side Arts District, the property sits near SteelStacks, Wind Creek Casino, and ArtsQuest. Street parking and nearby parking garages support visitor access. An approved RACP grant is also associated with the property for qualifying redevelopment projects.
Located at 17 W 2nd St in Bethlehem’s South Side Arts District, the property sits near SteelStacks, Wind Creek Casino, and ArtsQuest. Street parking and nearby parking garages support visitor access. An approved RACP grant is also associated with the property for qualifying redevelopment projects.
Key Highlights
- 23,612‑square‑foot commercial building constructed in 1970
- Previously operated as a restaurant with potential for commercial kitchen infrastructure
- Exposed brick, high ceilings, and expansive open areas
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
$188,911
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%
$3,778,220
$3.8M
Cap Rate 7%
$2,698,729
$2.7M
Cap Rate 9%
$2,099,011
$2.1M
Market Conditions
NOI Build-Up for 23,612 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
$272.0K $11.52/SF
− Vacancy
−$20.1K −$0.85/SF
EGI
$251.9K $10.67/SF
− OpEx
−$63.0K −$2.67/SF
NOI
$188.9K $8.00/SF
Area
Lehigh County, PA
Vacancy
7.40%
Lease Rate
$11.52 /SF/Yr
Expense Ratio
25.00%
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%
$3,778,220
Cap Rate 7%
$2,698,729
Cap Rate 9%
$2,099,011
Alternative Uses
Best Use
Specialty Retail
$2.70M
$2.36M – $3.15M
NOI $188,911 @ 7.0% cap · market cap 7.56%
Second Best
—
—
no second resolved use
Theoretical Best
Mixed Use
$3.47M
$3.04M – $4.05M
NOI $243,056 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,662
Businesses Nearby
93k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 56%
Shops & Services 21%
Groceries 15%
Hotels & Casinos 8%
Wendy's
Dining
14,468 visits/mo
0.4 miles
C-Town Supermarkets
Groceries
14,014 visits/mo
0.2 miles
Starbucks
Dining
12,511 visits/mo
0.3 miles
Perkins Restaurant & Bakery
Dining
7,585 visits/mo
0.3 miles
Dunkin' Donuts
Dining
7,199 visits/mo
0.3 miles
Demographics for 18015, PA
33,286
Population
12,867
Households
2.6
Avg Household Size
32
Median Age
31%
College-Educated
87%
High-School Grad
23.2 sq mi
ZIP Area
1,435
Density / Sq Mi
$58,470
Median Household Income
$32,703
Median Earnings
$1,310
Median Rent
$243,100
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?
Conventional restaurant - Flexible commercial space in Bethlehem’s South Side Arts District with exposed brick, high ceilings, and access to nearby parking garages.
Where is this conventional restaurant located?
The property is located at 17 W 2nd St Bethlehem, PA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 23,612‑square‑foot commercial building constructed in 1970; Previously operated as a restaurant with potential for commercial kitchen infrastructure; Exposed brick, high ceilings, and expansive open areas
