New Construction Multifamily Investment
For Sale
$999,999
Pending
1731 West Montgomery Avenue, Philadelphia, PA 19121
Newly constructed, fully leased 3-unit property near Temple University.
Property Size3,510 SF
Days on Market102
Property Features for 1731 West Montgomery Avenue
General Information
Standard status
Pending
Size
3,510 SF
Property subtype
Multi-Family / Fee Simple
Zoning
RM1
Net Operating Income
$107,125
Taxes and HOA fees
Annual Taxes
$1,153
Amenities
No
No Pool
Building Details
Year Built
2022
Listing Agency:
HomeZu
(610) 326-2414
Listed By:
Christopher J Carr · License #0338555
(610) 326-2414
Source:
Compass
Added: May 21
Changed: Aug 8
Last Checked: Jul 24 at 1:49PM
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 HomeZu
Investment Insights
Based on property information with market context.
This newly constructed 3-unit multifamily property, completed in 2023, is located in the Temple University area. The property combines modern finishes with cash flow, presenting a turnkey investment opportunity. It benefits from a 10-year tax abatement and is fully leased through 2027, generating a total monthly rental income of $9,550. The building features contemporary kitchens, modern bathrooms, in-unit laundry, and living spaces designed to attract tenants. Situated steps from Temple University, public transportation, dining, and major development, the property offers newer construction, tax advantages, and stabilized income in Philadelphia’s rental market. The property size is 3,510 square feet.
Key Highlights
- Newly constructed (2023) 3‑unit multifamily property in the Temple University area.
- 10‑year tax abatement.
- Fully leased through 2027 with $9,550 monthly income.
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
$59,898
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
5.99%
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%
$1,197,960
$1.2M
Cap Rate 7%
$855,686
$855.7K
Cap Rate 9%
$665,533
$665.5K
Market Conditions
NOI Build-Up for 3,510 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
$90.6K $25.80/SF
− Vacancy
−$5.0K −$1.42/SF
EGI
$85.6K $24.38/SF
− OpEx
−$25.7K −$7.31/SF
NOI
$59.9K $17.06/SF
Area
Philadelphia, PA
Vacancy
5.51%
Lease Rate
$25.80 /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%
$1,197,960
Cap Rate 7%
$855,686
Cap Rate 9%
$665,533
Alternative Uses
Best Use
Multifamily LT 5
$855.7K
$748.7K – $998.3K
NOI $59,898 @ 7.0% cap · market cap 5.99%
Second Best
Apartment 5plus
$788.7K
$690.1K – $920.2K
NOI $55,211 @ 7.0% cap · market cap 5.52%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,065
Businesses Nearby
Explore this area
Business Placement
Demographics for 19121, PA
41,799
Population
19,673
Households
2.1
Avg Household Size
28
Median Age
25%
College-Educated
84%
High-School Grad
2.4 sq mi
ZIP Area
17,416
Density / Sq Mi
$36,208
Median Household Income
$29,915
Median Earnings
$1,082
Median Rent
$250,100
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?
Triplex - Newly constructed, fully leased 3-unit property near Temple University.
Where is this triplex located?
The property is located at 1731 West Montgomery Avenue Philadelphia, PA.
What is the asking price?
The asking price for this property is $999,999.
What are key features of this property?
This property features: Newly constructed (2023) 3‑unit multifamily property in the Temple University area.; 10‑year tax abatement.; Fully leased through 2027 with $9,550 monthly income.
