Restaurant Building with Lower
For Sale
$1,950,000
2 Rector Street, Philadelphia, PA 19127
Shell-condition restaurant property retaining portions of its original food-service infrastructure along a busy commercial corridor.
Property Size8,200 SF
Price / SF$237.80
Days on Market69
Property Features for 2 Rector Street
General Information
Standard status
Active
Size
8,200 SF
Property subtype
Retail
Building Details
Building Size
8,200 SF
Year Built
1900
Buildings
1
Stories
2
Listing Agency:
MPN Realty, Inc.
(267) 546-1721
Listed By:
Joe Scarpone · License #330910
Source:
Mpnrealty
Added: Jun 25
Changed: Aug 30
Last Checked: Aug 31 at 1:57PM
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 MPN Realty, Inc.
Investment Insights
Based on property information with market context.
This Philadelphia restaurant property offers 8,200 SF of usable space across two levels, with approximately 4,100 SF on the first floor and the same amount below. The building dates to 1900 and is currently in shell condition, while portions of the prior restaurant infrastructure remain in place. The property was formerly occupied by Bourbon Blue.
Located on Rector Street within Manayunk’s Main Street commercial corridor, the building is surrounded by restaurants, bars, coffee shops, and specialty retail. It is also within the Manayunk Main Street Historical District. Current zoning supports several approved uses, providing flexibility beyond restaurant occupancy, subject to applicable requirements.
Located on Rector Street within Manayunk’s Main Street commercial corridor, the building is surrounded by restaurants, bars, coffee shops, and specialty retail. It is also within the Manayunk Main Street Historical District. Current zoning supports several approved uses, providing flexibility beyond restaurant occupancy, subject to applicable requirements.
Key Highlights
- 8,200 SF of usable restaurant space across two levels
- Approximately 4,100 SF on both the first floor and lower level
- Shell condition with portions of restaurant infrastructure still intact
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
$118,818
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
6.09%
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%
$2,376,360
$2.4M
Cap Rate 7%
$1,697,400
$1.7M
Cap Rate 9%
$1,320,200
$1.3M
Market Conditions
NOI Build-Up for 8,200 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
$172.2K $21.00/SF
− Vacancy
−$13.8K −$1.68/SF
EGI
$158.4K $19.32/SF
− OpEx
−$39.6K −$4.83/SF
NOI
$118.8K $14.49/SF
Area
Philadelphia, PA
Vacancy
8.00%
Lease Rate
$21.00 /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%
$2,376,360
Cap Rate 7%
$1,697,400
Cap Rate 9%
$1,320,200
Alternative Uses
Best Use
Specialty Retail
$1.70M
$1.49M – $1.98M
NOI $118,818 @ 7.0% cap · market cap 6.09%
Second Best
Retail
$1.32M
$1.16M – $1.54M
NOI $92,678 @ 7.0% cap · market cap 4.75%
Theoretical Best
Multifamily LT 5
$2.00M
$1.75M – $2.33M
NOI $139,932 @ 7.0% cap · market cap 7.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,607
Businesses Nearby
19k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 84%
Dining 16%
7-Eleven
Shops & Services
8,360 visits/mo
0.5 miles
Sunoco
Shops & Services
4,903 visits/mo
0.5 miles
Insomnia Cookies
Dining
3,023 visits/mo
0.1 miles
Extra Space Storage
Shops & Services
1,795 visits/mo
0.5 miles
Bala Motorsports
Shops & Services
1,117 visits/mo
0.4 miles
Demographics for 19127, PA
6,929
Population
3,496
Households
2
Avg Household Size
29
Median Age
77%
College-Educated
98%
High-School Grad
0.6 sq mi
ZIP Area
11,548
Density / Sq Mi
$99,792
Median Household Income
$73,061
Median Earnings
$1,765
Median Rent
$298,900
Median Home Value
Market
Vacancy Rate% for Retail in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Shell-condition restaurant property retaining portions of its original food-service infrastructure along a busy commercial corridor.
Where is this conventional restaurant located?
The property is located at 2 Rector Street Philadelphia, PA.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: 8,200 SF of usable restaurant space across two levels; Approximately 4,100 SF on both the first floor and lower level; Shell condition with portions of restaurant infrastructure still intact
