Historic Loft Residential Income
New
For Sale
$870,000
20-22 N 3RD STREET Unit 401, Philadelphia, PA 19106
Half-floor loft residence with industrial details, custom finishes, and flexible space for living, work, or creative use.
Property Size2,064 SF
Days on Market6
Property Features for 20-22 N 3RD STREET Unit 401
General Information
Standard status
Active
Size
2,064 SF
Property subtype
Penthouse Unit/Flat/Apartment
Taxes and HOA fees
Annual Taxes
$10,679
Building Details
Building Size
2,064 SF
Year Built
1927
Listing Agency:
Compass Pennsylvania, LLC
Listed By:
Kristin McFeely · License #RS288562
(215) 620-8726
Source:
Patmckennarealtors
Added: Sep 4
Changed: Sep 8
Last Checked: Sep 8 at 12:20PM
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 Pennsylvania, LLC
Investment Insights
Based on property information with market context.
Unit 401 occupies an expansive half floor in the Daniel Building, a 7-story structure built in 1927 as a garment factory. The two-bedroom, two-bath residence retains exposed beams, painted brick, visible mechanicals, bamboo flooring, high ceilings, and large steel-framed windows with eastern, western, and southern exposures. A custom renovation adds a kitchen with warm wood cabinetry, Viking appliances, and an oversized island, along with generous living and dining areas. The primary suite includes a walk-in closet and custom bath with double vanity and glass-enclosed shower. A second bedroom features frosted-glass sliding doors, while part of the loft is configured as a recording studio.
The building has a restored Art Deco exterior of buff brick and cast stone, a three-bay storefront, and a lobby finished with Minnesota stone and Italian marble. A shared balcony overlooks historic 3rd St, the Ben Franklin Bridge, and Christ Church. The property is in Philadelphia’s Old City, near galleries, design studios, independent shops, restaurants, coffee shops, nightlife, the Delaware River waterfront, and Center City.
The building has a restored Art Deco exterior of buff brick and cast stone, a three-bay storefront, and a lobby finished with Minnesota stone and Italian marble. A shared balcony overlooks historic 3rd St, the Ben Franklin Bridge, and Christ Church. The property is in Philadelphia’s Old City, near galleries, design studios, independent shops, restaurants, coffee shops, nightlife, the Delaware River waterfront, and Center City.
Key Highlights
- Unit 401 is an expansive half‑floor loft in the Daniel Building
- Built in 1927 as a garment factory; the building has 7 stories
- Two‑bedroom, two‑bath residence with eastern, western, and southern exposures
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
$32,466
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
3.73%
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%
$649,320
$649.3K
Cap Rate 7%
$463,800
$463.8K
Cap Rate 9%
$360,733
$360.7K
Market Conditions
NOI Build-Up for 2,064 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
$62.7K $30.36/SF
− Vacancy
−$3.6K −$1.76/SF
EGI
$59.0K $28.60/SF
− OpEx
−$26.6K −$12.87/SF
NOI
$32.5K $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%
$649,320
Cap Rate 7%
$463,800
Cap Rate 9%
$360,733
Alternative Uses
Best Use
Apartment 5plus
$463.8K
$405.8K – $541.1K
NOI $32,466 @ 7.0% cap · market cap 3.73%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$503.2K
$440.3K – $587.0K
NOI $35,222 @ 7.0% cap · market cap 4.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
11,111
Businesses Nearby
Explore this area
Business Placement
Demographics for 19106, PA
15,190
Population
9,913
Households
1.5
Avg Household Size
39
Median Age
80%
College-Educated
96%
High-School Grad
0.9 sq mi
ZIP Area
16,878
Density / Sq Mi
$129,779
Median Household Income
$93,953
Median Earnings
$2,219
Median Rent
$528,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Half-floor loft residence with industrial details, custom finishes, and flexible space for living, work, or creative use.
Where is this residential income property located?
The property is located at 20-22 N 3RD STREET Unit 401 Philadelphia, PA.
What is the asking price?
The asking price for this property is $870,000.
What are key features of this property?
This property features: Unit 401 is an expansive half‑floor loft in the Daniel Building; Built in 1927 as a garment factory; the building has 7 stories; Two‑bedroom, two‑bath residence with eastern, western, and southern exposures
